Creative Performance of Millennials and Generation Z: What Matters More, Intrinsic or Extrinsic Rewards?

Abstract

Millennials and Gen Z now dominate the global workforce, each with distinct reward preferences influencing motivation and creativity. Understanding these distinctions is critical for improving employee retention and performance. This research aims to evaluate the efficacy of intrinsic and extrinsic rewards for both cohorts. The main goals are to determine reward preferences, examine the mediation effects of moral importance of work and learning attitudes, and assess their impact on creative performance. Using online survey, data were collected from 319 individuals in India and analysed using confirmatory factor analysis and structural equation modelling. Results show that while intrinsic rewards were not significantly related to the moral importance of work for either generation, extrinsic rewards were linked to moral importance only for Gen Z. Extrinsic rewards also had no significant impact on learning attitudes for Gen Z, but they did for millennials. Additionally, the moral importance of work was unrelated to creative performance for millennials, but it had a significant impact on Generation Z. By examining these dynamics, this study aims to provide insights into generational shifts in workplace values in the Indian context, highlighting implications for employee’s creative performance that align with each generation’s unique priorities and ethical considerations.

1. Introduction

In the ever-evolving workforce landscape, the emergence of different generational cohorts has significantly influenced workplace dynamics, motivation, and reward systems. Research indicates that expectations and motivators vary significantly throughout age groups. Among these groups, millennials and Generation Z (Gen Z) are notable for having unique characteristics, values, and driving forces that influence how they approach their jobs (Deloitte Insights, 2023; Poynton, 2020; Heyns & Kerr, 2018). Individuals born between 1982 and 1999 are often called Generation Y or millennials (Twenge et al., 2010). Other names include GenY, nGen, and GenMe. This generational cohort was born in the last two decades of the twentieth century and began entering adulthood in the new millennium (Galdames & Guihen, 2022; Strauss & Howe, 2000). Similarly, Generation Z or Gen Z are the terms used to describe individuals born during the late 1990s and early 2000s. Some sources give the specific year range of 1997–2012, although the years spanned are sometimes contested or debated because generations are difficult to delineate. These members (Gen Z) comprise the first generation never to know the world without the internet, and the most diverse generation yet (Katz et al., 2021). There has been relatively little scholarly research on the traits and expectations of generations and their consequences for the workplace, as the majority of the work on generations has been based on observation rather than extensive empirical data (Lyons & Kuron, 2014). Understanding the subtle variations in how these generations view intrinsic and extrinsic rewards is becoming more important as businesses work to maximize employee engagement and retention.

According to self-determination theory (SDT), motivation is often categorized into intrinsic (arising from internal satisfaction) and extrinsic (driven by external incentives) types (Deci et al., 2017). Extrinsic rewards, which are material benefits from outside sources like salaries and bonuses, stand in stark contrast to intrinsic rewards, which come from the intrinsic satisfaction of completing a task. Prior research has emphasized millennials’ distinct motivating factors, which are frequently defined by a desire for work–life balance, personal development, and meaning (Manuti et al., 2018). Gen Z, on the other hand, may place a higher value on career stability, financial security, and a clear path for professional growth because they grew up in a digital age characterized by economic uncertainty and rapid technological improvement (Waworuntu et al., 2022). Being the newest generation to join the workforce, Gen Z workers have different perspectives on learning and work than earlier generations. Although the relationship between intrinsic and extrinsic rewards has been thoroughly examined across generations, the emergence of Gen Z (born 1997–2012) in the workforce offers a distinctive setting for this interaction. The purpose of this study is to compare millennials and Gen Z’s preferences for intrinsic and extrinsic rewards in the context of modern work settings. Understanding the motivations of Gen Z and millennials is crucial for creating a positive and productive work environment as organisations manage the challenges of a multigenerational workforce.

In the contemporary workforce, the values and motivations of employees are shaped significantly by their generational identities. To cultivate environments that foster engagement and retention, understanding the intricate relationship between intrinsic and extrinsic rewards and the moral importance of work becomes essential (Twenge et al., 2010). According to previous studies, millennials are frequently driven by a sense of purpose and personal development, seeing their jobs as a way to live out their ideals and make a meaningful contribution to society (Manuti et al., 2018). Gen Z, on the other hand, values a sense of purpose in their work but tends to place more importance on job security and financial stability because they grew up in a time of economic hardship and rapid technological advancement (Waworuntu et al., 2022). Important considerations concerning how each cohort views the interaction between intrinsic and extrinsic rewards and how these views influence their comprehension of the moral relevance of work are brought up by this generational divide. This generational divide begs crucial concerns regarding how each cohort views the relationship between intrinsic and extrinsic rewards and how this further impacts their views on the moral importance of work. This study intends to shed light on how different generational cohorts prioritize their work’s ethical aspects and motivations to offer insights into how employee expectations are changing. Gaining insight into these factors can help organisations better attract and retain talent while also fostering a work environment that reflects the values and goals of Gen Z and millennials.

Organizations seeking to promote skill development and continuous improvement must also have a thorough awareness of the elements that drive learning attitudes in employees in the quickly evolving workplace of today. Therefore, this research paper also aims to compare the learning attitudes of millennials and Gen Z related to their interrelationship with intrinsic and extrinsic rewards. Research indicates that there are significant differences between these two generations in the relationship between learning attitudes and rewards, both extrinsic and intrinsic, which affects how individuals take advantage of training and educational opportunities (Heyns & Kerr, 2018). Millennials frequently prefer intrinsic rewards, such as the sense of accomplishment and mastery that comes from learning (Chaudhuri, 2020). This generation values chances that fit with their goals for influence and self-improvement, and they frequently see education as a means of achieving personal growth and purpose. Although extrinsic rewards such as cash incentives, public acclaim, and job advancement are important to this cohort, these are frequently viewed by millennials as supplemental to their more profound aspirations for growth and purpose. On the other hand, because Gen Z grew up in a time of economic uncertainty and digital immediacy, they might approach learning more strongly in favour of extrinsic rewards (Poynton, 2020). Results-driven by nature, this generation looks for opportunities that provide them with useful, transferable skills that can be immediately rewarded and acknowledged on the job.

Millennials frequently look for work that is motivated by a sense of purpose and is consistent with their values, since they feel that their jobs should benefit society. Due to their personal investment in the results of their job, this sense of moral alignment might increase their level of engagement and creative performance (Hui et al., 2021). However, a digital, results-driven society and economic uncertainties have influenced Generation Z. Although Gen Z values ethics, they can view creativity more as a means of advancing their careers than as a reaction to moral obligations. Rather than having a strong ethical connection to their work, their creative output is frequently motivated by outside rewards like notoriety or chances for professional advancement (Bulut & Maraba, 2021). This study examines the ways in which Gen Z and millennials relate the moral importance of work to creative output, providing guidance for creating cultures that encourage creativity across generations. Organizations can leverage the capabilities of both generations to generate ethical and creative impacts by being aware of these differences.

Millennials and Gen Z also bring distinct learning attitudes that shape their creative performance in the workplace. As millennials tend to approach learning as a means for self-growth and purpose, they often value opportunities that align with their personal development goals. This intrinsic motivation can drive their creative performance, as they are more likely to experiment and explore new solutions when they feel learning aligns with their aspirations (Gabrielova & Buchko, 2021). On the other hand, Generation Z is realistic and goal-oriented, and they frequently see work as a means of gaining practical skills that will advance their careers right away. In settings that offer organized, goal-oriented learning opportunities, where they may promptly use new information to increase productivity and address issues, this generation’s creative performance tends to flourish (Pandita et al., 2023). For Gen Z, creativity is frequently associated with real-world results and professional growth rather than just personal satisfaction (Pandita, 2022). By examining these variations, this paper aims to shed light on the importance of creating workspaces that accommodate the distinct learning and creative styles of each age cohort, thereby promoting a creative, flexible workplace.

The current study examines the following research objectives within the Indian context:

• A comparison between millennials and Gen Z in terms of the relationship between intrinsic and extrinsic rewards and moral importance of work
• A comparison between millennials and Gen Z in terms of the relationship between intrinsic and extrinsic rewards and learning attitudes at work
• A comparison between millennials and Gen Z in terms of the relationship between moral importance of work and creative performance.
• A comparison between millennials and Gen Z in terms of the relationship between learning attitudes at work and creative performance.

2. Literature Review and Hypotheses Development

This section presents the literature on all the variables. The hypothesized research model is depicted in Figure 1. Intrinsic rewards and extrinsic rewards are the two independent variables and creative performance is the dependent variable. Moral importance of work and learning attitude are the two mediating variables. Through this hypothesized model, the present study examines the mediating effects of the moral importance of work and learning attitude between the relationship of intrinsic rewards, extrinsic rewards and creative performance of students in higher education.

2.1. Background of the Study and Indian Context

Studying generational differences in the Indian workplace is crucial due to the unique, diverse cultural and socioeconomic factors that influence work behaviours and attitudes (Chawla et al., 2017). A large percentage of India’s workforce is made up of Gen Z and millennials, making it one of the youngest in the world. Because each generation may have different motivations—millennials and Gen Z, for example, want growth and purpose, while Gen X values stability and flexibility—understanding generational differences could aid organisations in creating focused retention strategies. Additionally, India’s generations have experienced wildly disparate social and economic contexts (Kakar & Kakar, 2009). While younger generations place a higher importance on flexibility, work–life balance, and educational possibilities, baby boomers and Generation X, for example, have more hierarchical structures and place a higher priority on job security and financial benefits. By taking into account these preferences, Indian businesses may create advantages and incentives that appeal to each segment, increasing productivity and work satisfaction. Given that these four generations frequently collaborate, team interactions are enhanced by an awareness of generational values. If handled well, Gen Z’s desire for diversity and teamwork, millennials’ need for creativity, and Gen X’s expertise with work and personal obligations can all lead to a more peaceful workplace (Singh & Gupta, 2015). By addressing these differences, we may foster an inclusive culture and encourage the sharing of information across generations. In order to create an inclusive, productive, and values-driven workplace, Indian businesses can align their HR policies with changing employee expectations by recognizing generational values affected by economic and societal trends.

Existing literature shows that much of the generational research globally applies frameworks from Western contexts, where cultural norms, economic environments, and values differ. In India, work attitudes are particularly shaped by elements such as regional diversity, cultural expectations, and familial influence. However, studies that examine the ways in which these particular cultural factors influence generational disparities in the workplace lack in-depth research (Srinivas, 2018; Kinger & Kumar, 2023). In other words, the research on generational definitions unique to India is scarce. Events such as the digital boom of the 2000s or economic liberalization in the early 1990s, for instance, may have produced distinct Indian generational cohorts with values that deviate from those defined by worldwide cohort definitions. Closing this gap could enhance generational knowledge of Indian economic and cultural realities (Singh et al., 2021). Also, there is little information on how non-monetary benefits, such as flexible work schedules or professional growth, affect each generation in India, despite research showing that reward preferences vary by generation. Because of this disparity, issues of creating incentives that appeal to different generations and improving retention strategies go unanswered (Hassan et al., 2019). Filling in these gaps will improve employee engagement, productivity, creativity and satisfaction by providing a deeper grasp of how to manage generational diversity in India’s distinct socioeconomic and cultural environment.

2.2. Intrinsic Rewards and Moral Importance of Work

Intrinsic rewards refer to the non-material, personal satisfaction and motivation that individuals derive from their work (Twenge et al., 2010). Deci and Ryan’s (2013) self-determination theory contends that meeting the requirements for autonomy, competence, and relatedness results in a greater sense of well-being and emphasises intrinsic motivation as a critical component of engagement and productivity. These benefits include feeling competent in a role, completing significant tasks, and growing personally. According to a number of anecdotal findings (Arnett, 2013; Lancaster & Stillman, 2003; Tulgan, 2003, 2009), Gen X and millennials prioritise purpose in their work, and organisations seem to concur. Millennials often view work as an extension of their values, seeking roles that align with social causes and ethical practices, fostering a heightened sense of moral importance in their work (Nichols & Smith, 2024; Thompson & Gregory, 2012). Past research shows that millennials choose to work in an environment that aligns with their values rather than purely based on financial rewards. They are more engaged and committed to the organisation where they feel their contribution has a social impact (Gibson et al., 2009). For millennials, work is more than a means to an end; it is an opportunity to contribute to meaningful goals and personal fulfilment (Twenge & Campbell, 2008). This alignment with intrinsic motivators suggests millennials are more likely to experience job satisfaction and loyalty when their roles contribute to ethical and social objectives (Barron & Hulleman, 2015; Deal et al., 2010). In comparison to these generations, Gen Z views intrinsic rewards as particularly important. This generation prefers jobs that offer chances for further education, personal growth, and emotional fulfilment in addition to financial stability (Schroth, 2019).

The moral importance of work refers to the “degree to which individuals view their work as aligned with their personal values and ethical standards” (Cogin, 2012). In addition to fulfilling duties, Gen Z views employment as a way to contribute to a greater societal benefit. Gen Z workers are more likely to work for companies that share their moral and ethical beliefs, according to research (Deloitte, 2022). Therefore, employers who exhibit a dedication to sustainability, diversity, and social justice are attractive to this generation, which places a high importance on corporate social responsibility (CSR) and ethical company practices (Francis & Hoefel, 2018). Several studies have demonstrated a strong link between Gen Z workers’ moral importance of their jobs and intrinsic rewards. One example of this relationship is the way Gen Z employees find personal fulfilment in knowing that their work advances a greater ethical or social purpose in addition to the tasks they complete, such as jobs in sustainability, healthcare, or non-profit organisations.

According to research, Gen Z workers experience greater levels of intrinsic rewards—like personal development and a sense of accomplishment—when their employment is in line with a moral cause (Francis & Hoefel, 2018). Bailey and Madden (2017) also assert that when employees feel their work has moral integrity, they become more intrinsically driven. For Gen Z, receiving intrinsic rewards means more than just feeling capable; it also means making sure their efforts have a beneficial social impact. Research indicates that jobs in industries such as healthcare, education, and renewable energy—where moral principles and inherent benefits are highly aligned—are especially appealing to this age (Ng & Gossett, 2013). When Gen Z workers feel both morally attached to their work and intrinsically rewarded, they are more likely to stay engaged and stay longer (Schroth, 2019). Since the satisfaction of ethical principles and personal development demands fosters a deep emotional bond with the work, this combination offers a potent motivator. Employers are therefore more likely to retain Gen Z talent if they provide meaningful work in addition to intrinsic rewards.

While research has made strides in understanding how intrinsic rewards and moral importance influence Gen Z in the workplace, several gaps remain that warrant further exploration. Although previous research recognises the significance of these elements for the generation, very few studies have examined the direct relationship between intrinsic rewards and Gen Z’s moral importance of work and vice versa. Most research has focused on these two factors independently. The current study measures the direct interaction between intrinsic motivation and the ethical alignment of work to see how each factor reinforces the other in Gen Z employees. Secondly, a large portion of the existing literature is based on research carried out in Western settings, mostly in the United States and Europe, which restricts its generalizability to other cultures. The current study aims to fill this gap by examining the results in India. We propose Hypotheses 1a and b.

H1a. 

Intrinsic reward is positively related to moral importance of work in millennials.

H1b. 

Intrinsic reward is positively related to moral importance of work in Gen Z.

2.3. Intrinsic Rewards and Learning Attitude

Intrinsic rewards are psychological benefits that individuals receive from engaging in tasks for the inherent pleasure and satisfaction derived from the activity itself. Self-determination theory (SDT) (Deci & Ryan, 2013) states that intrinsic motivation results from meeting three fundamental psychological needs: relatedness (the need to connect with others), competence (the want to feel effective), and autonomy (the desire to be in control of one’s activities). These internal motivators play a significant role in shaping employees’ learning attitudes, particularly in how individuals handle difficulties, learn new skills, and develop personally. Learning attitudes refer to “an individual’s mindset, motivation, and engagement toward acquiring new knowledge or skills” (Kyndt et al., 2009). Millennials differ from previous generations due to generational values and motivation shifts. They seek promotion and value skill development (Wong et al., 2008). They are more motivated by intrinsic rewards, such as personal satisfaction, self-fulfilment, and meaning, which leads to an increased learning attitude. Millennials seek intrinsic rewards that promote their personal growth and sense of purpose. They value contributions that have a meaning and broader impact, like social values (Glass, 2007). Having meaningful work as an intrinsic reward can encourage them to learn more as it aligns with their values. This generation is motivated by an environment that supports learning through autonomy, creative tasks, and personal development.

The connection between Gen Z workers’ learning attitudes and intrinsic rewards stems from their need for independence, meaning, and personal development. Positive learning attitudes will be more successfully fostered by organisations that successfully tap into these intrinsic motivators by providing flexible, relevant, and personalised learning experiences. Moreover, intrinsic rewards foster curiosity, perseverance, and a willingness to take on challenges—qualities that are indicative of positive learning attitudes. Therefore, their desire to continue learning and growing is strengthened further by the sense of competence they obtain from finishing a task (Mangels et al., 2006). Learning initiatives that prioritise sustainability, social impact, or career advancement, for example, are highly effective in meeting Gen Z’s innate need for meaning (Gaidhani et al., 2019). The sense of purpose that comes from their work acts as a major source of motivation for Gen Z workers. They are more likely to exhibit a positive attitude towards learning when learning opportunities are in line with significant objectives or serve a greater good. Research shows that a more positive attitude towards learning also results from intrinsic incentives linked to personal mastery, such as the fulfilment of conquering obstacles or mastering new skills.

Self-directed learning experiences that provide Gen Z workers autonomy over what, when, and how they learn are frequently preferred by them. Their incentive to pursue ongoing education is increased by intrinsic rewards, such as the fulfilment that comes from working alone or reaching personal mastery (Sharma & Pandit, 2020). Learning initiatives that prioritise social impact, sustainability, or career advancement, for example, strongly appeal to Gen Z’s innate need for meaning. Since Gen Z frequently uses online courses and microlearning platforms to pursue personal interests and skill development at their own speed, this autonomy is consistent with their digital fluency. Research comparing Gen Z to earlier generations (Gen X, millennials) on how intrinsic rewards influence attitudes toward learning is scarce (Khan & Al-Shibami, 2019). Comparing generational differences can reveal distinctive features of Gen Z’s learning style and offer guidance on how educational tactics might change to accommodate their requirements. Also, much of the existing research on intrinsic rewards and learning attitudes for Gen Z focuses on educational settings rather than on workplace environments. There is limited understanding of how intrinsic motivation operates in organisational settings and on-the-job learning for this generation. Learning attitudes in the workplace are influenced by different factors than in academic environments, such as career goals, workplace culture, and job satisfaction. Research is needed to see how intrinsic rewards, such as personal growth, autonomy, and job mastery, drive learning behaviours in these contexts. We propose Hypotheses 2a and b.

H2a. 

Intrinsic reward is positively related to learning attitude in millennials.

H2b. 

Intrinsic reward is positively related to learning attitude in Gen Z.

2.4. Extrinsic Rewards and Moral Importance of Work

Extrinsic rewards refer to the “tangible benefits provided by organisations to their employees, such as bonuses, promotions, and other forms of recognition in exchange for their work efforts” (Twenge et al., 2010). According to traditional economic theories like expectancy theory and reinforcement theory, extrinsic rewards play a significant role in influencing employee behaviour and motivation. While reinforcement theory emphasizes how rewards and punishments impact future behaviour (Skinner, 1957), expectation theory contends that employees are motivated when they think their efforts will result in desirable outcomes (Vroom, 1964). Previous studies have found that extrinsic rewards are less important for millennials in improving their moral importance of work. As this generation gives more importance to work–life balance, ethical implications, and the social impact of work, external rewards like salary and financial status may not influence their moral importance of work (Benson & Brown, 2011; Gursoy et al., 2013). On the other hand, Gen Z employees seek not only financial stability but also aspire to achieve an alignment between their personal and professional roles (Alimin & Tukiran, 2024). They are frequently characterized as the most socially “aware” generation, with a strong preference for organisations that support diversity, sustainability, corporate social responsibility (CSR), and ethical business practices (Francis & Hoefel, 2018). Therefore, compared to older generations, this generation is more likely to place a higher priority on working for organisations that share their moral principles and advance social justice (Deloitte, 2020). For instance, the 2020 Deloitte Global Millennial Survey found that 42% of Gen Z respondents said they would prefer to work for an organisation that reflects their personal values, even if that meant accepting a lower salary. This implies that in order for these workers to feel completely driven, extrinsic rewards need to be in line with the moral significance of their labour.

Interestingly, the interaction between extrinsic rewards and the moral importance of work for Gen Z employees is distinct (Acheampong, 2021). Although Gen Z values opportunities embarked by career advancements and financial security, they are unwilling to sacrifice their morals in order to obtain financial advantage. Past research also shows that Gen Z workers favour organisations where their ethical convictions are not at odds with extrinsic rewards (Dwivedula & Singh, 2020). For example, a well-paying position at an organisation that engages in social injustice or ecologically damaging practices would not be as desirable as a lower-paying position at an organisation that practices social responsibility (Deloitte, 2020). They expect their employers to address global issues such as climate change, racial and gender inequality, and corporate transparency. Therefore, the moral importance of work for Gen Z goes beyond the pursuit of personal success. This suggests that extrinsic rewards must align with the moral importance of work for these employees to feel fully motivated. It also aligns with studies suggesting that Gen Z views work as an extension of their personal identity, with a preference for roles that enable them to make a tangible difference in the world (McKinsey & Company, 2019).

While many studies highlight Gen Z’s preference for moral alignment at work, some tensions do exist between their desire for extrinsic rewards and the moral importance they assign to their jobs. For example, the moral need to work for non-profits, social enterprises, or public sector organisations that may offer lower financial pay but higher ethical worth may clash with Gen Z’s expectation of high salaries, especially in tech-driven industries. Furthermore, Gen Z workers may experience ethical issues if they work for profit-driven companies that provide high extrinsic rewards but engage in unethical labour practices or environmental harm, for example (Miller, 2021). The relationship between extrinsic rewards and the moral importance of work in Gen Z employees is complex, and understanding how extrinsic rewards interact with their commitment to moral and ethical values is essential for employers aiming to attract and retain this generation. We propose Hypotheses 3a and b.

H3a. 

Extrinsic reward is positively related to moral importance of work in millennials.

H3b. 

Extrinsic reward is positively related to moral importance of work in Gen Z.

2.5. Extrinsic Rewards and Learning Attitude

Research shows that millennials, compared to previous generations, value extrinsic rewards less and are more motivated by factors related to personal fulfilment and purpose (Twenge et al., 2010; Wray-Lake et al., 2011). Millennials prioritise balance and purpose over purely financial success, suggesting a move away from traditional extrinsic motivators like salary and status (Gibson & Sodeman, 2014). Taylor (2012) further indicates that millennials often view money as a means to an end rather than a measure of success, reflecting a preference for non-monetary incentives in educational and professional settings. This shift is also evident in education, where millennials respond more positively to learning environments that emphasise engagement, collaboration, and real-world applications rather than traditional external motivators like grades or awards. Barron and Hulleman (2015) suggest that millennials are particularly engaged in tasks where they perceive personal relevance and the potential for growth.

Gen Z employees, on the other hand, are frequently characterized as being tech-savvy, flexible, and pragmatic. They are natural learners in a digital world because they grew up with the internet and are used to the dynamic change and the availability of knowledge. Gen Z enjoys feedback and growth chances, but their demand for instant gratification and observable results might have an impact on their views towards learning. Typically, younger workers choose instant and tangible rewards, which fits with their need for immediate outcomes and discernible advancement (Ng et al., 2010), such as pay raises, promotions, or certifications. Thus, providing extrinsic incentives might be a useful strategy for motivating Gen Z workers to engage in learning initiatives, particularly those that are closely related to career progression. Vroom’s expectancy theory also supports this, as it contends that the employees are motivated when they believe their efforts will result in rewards they value, thus supporting the use of extrinsic incentives in driving learning behaviours (Vroom et al., 2015). Here, learning attitude refers to an employee’s approach to acquiring new knowledge, improving skills, and adapting to new challenges at work. A positive learning attitude involves curiosity, resilience, open-mindedness, and a willingness to invest effort into continuous personal and professional development (Kyndt et al., 2009).

An excessive dependence on extrinsic rewards may result in what Kuvaas et al. (2017) refer to as a “transactional” view of learning, even though these incentives can encourage short-term learning practices. In such a scenario, employees engage in learning solely for the reward rather than for the inherent value of knowledge or skill acquisition. This strategy may hinder the growth of a genuine, long-term learning mindset since employees may become disinterested in learning if the incentive is taken away or becomes less alluring. Extrinsic rewards have traditionally been used to enhance job performance and encourage learning, but their long-term effect on nurturing a positive learning attitude remains debated. As a result, organisations must strike a balance between possibilities for intrinsic motivation and extrinsic rewards, such as providing learning opportunities that complement Gen Z’s beliefs and personal interests. We propose Hypotheses 4a and b.

H4a. 

Extrinsic reward is negatively related to learning attitude in millennials.

H4b. 

Extrinsic reward is positively related to learning attitude in Gen Z.

2.6. Moral Importance of Work and Creative Performance

The moral importance of work has long been viewed as a crucial aspect of organisational life for employees. Research has indicated that moral considerations can diminish creativity. However, some evidence suggests that morality might not always hinder creativity and could enhance it (Kundro, 2023). Employees with high moral importance for work are more likely to go beyond the call of duty and work proactively, which might increase their creative performance (Gok et al., 2023). Creativity, characterized by novel and useful idea generation, is highly valued in today’s dynamic work environment (Welbourne et al., 1998). Given the growing number of millennials and Gen Z employees, it is critical for organisations to comprehend what motivates their innovation and creative output. One developing field of study examines the interconnection between employees’ creative performance and the moral significance of their work, or how much they believe their work reflects moral principles and advances society. Interestingly, the interconnection between the moral significance of work and creative performance can be understood through several theoretical lenses (Cho et al., 2018). Past research shows that employees with high moral importance for work are more likely to go beyond the call of duty and work proactively, which may enhance their creative performance (Gok et al., 2023). For instance, millennials embrace a mindset of “work hard, play harder, but strive to work in environments where you can envision yourself enjoying life”. They put in substantial effort to achieve a better work–life balance and create more free time. This focus on the moral importance of work ultimately contributes to their creative performance. They are “optimists, cooperative, team players, trusting, accepting of authority, rule-followers, smart, civic-minded, special, sheltered, confident, achieving, pressured, conventional” (Strauss & Howe, 2000). Millennials are concerned about their positions and the organisation’s future, and such employees are usually motivated to be more creative (Hou et al., 2014; Hui et al., 2021). They believe that work is invaluable and value freedom at work, meaningful work, work readiness, advancement opportunities, and enjoy facing challenges (Gursoy et al., 2013; Tang, 2015; Winter & Jackson, 2016), thus increasing their creative performance.

According to SDT (Deci & Ryan, 2013), people become more intrinsically motivated when they feel competent, autonomous, and connected. By bringing personal beliefs into line with professional objectives, moral importance in the workplace enhances a sense of autonomy and purpose, which in turn contributes to these intrinsic motivators. Gen Z is known for emphasizing ethical issues and purpose-driven work, which influences their perspectives on performance and creativity. It has been demonstrated that intrinsic motivation, a major factor in creative performance, is fuelled by this sense of purposeful effort (Gerhart & Fang, 2015). Employees are more likely to be inspired to think creatively and find novel solutions to issues when they believe their work has moral value, claims SDT. Furthermore, the significance of intrinsic drive in creative processes is emphasized in Amabile’s Componential Theory of Creativity (Amabile, 1983). This theory highlights that creativity thrives when people are genuinely motivated by tasks that they find personally significant or that are consistent with their values. In this regard, Gen Z workers’ intrinsic motivation rises and encourages innovative problem-solving and creative thinking when they believe their work is advancing a larger moral or societal benefit (Twenge, 2017).

Meaningful Work Theory is another theory that connects creative performance with the moral importance of work (Bowie, 1998). Wrzesniewski et al. (2003) state that when employees discover meaning in their work, they are more likely to be engaged, be more satisfied with their jobs, and perform creatively. Aligning moral principles with job duties can increase a sense of meaningfulness, which is closely linked to creative results, especially for Gen Z, who frequently place a high value on purpose-driven work. In contrast to earlier generations, Gen Z workers place a high importance on matching their professional ideals with their personal beliefs, especially when it comes to ethical, social, and environmental issues. For example, Grant (2012) found that employees who perceive their work as having a positive moral or ethical impact are more likely to demonstrate creative behaviours, such as generating new ideas, solving problems innovatively, and proposing improvements. This perspective highlights how moral importance of work plays a part in fostering the mental and emotional activity required for creativity. The majority of research on the ethical significance of labour and creative output focuses on older generations (such as millennials) or employees in general. Surprisingly, very few studies have explicitly examined how Gen Z’s distinct value systems—which are based on ethics, social consciousness, and a desire for meaningful work—specifically influence their creative processes, despite the fact that some research explores Gen Z’s preferences. Therefore, it is crucial to investigate how Gen Z’s emphasis on purpose and societal impact differs from that of previous generations in terms of how moral significance in their job affects their creativity. We propose Hypotheses 5.

H5a. 

Moral importance of work is positively related to creative performance in millennials.

H5b. 

Moral importance of work is positively related to creative performance in Gen Z.

2.7. Learning Attitude and Creative Performance

One of the main indicators of creative performance is a good attitude towards learning, which is defined by openness and curiosity. Employees who are willing to pick up new abilities and information are more inclined to question preconceived notions and investigate various viewpoints, two things that are essential for creativity. According to Hirst et al. (2009), a learning orientation encourages adaptive expertise, which empowers staff members to create original answers to challenging issues. Being open to learning can help employees, who are naturally interested and eager to learn new things, generate original ideas and engage in creative exploration. According to Amabile’s componential theory of creativity (1983), intrinsic motivation, creativity-relevant processes, and domain-relevant abilities all have an impact on creativity. Research shows that millennials are more motivated by intrinsic rewards. When they find a job meaningful, they become keen to learn in that environment, which enhances their creative performance (Wong et al., 2017). Millennials are drawn to intrinsic rewards, valuing growth and autonomy over traditional extrinsic motivators like salary, which fosters greater creative output (Van den Broeck et al., 2021). When learning environments prioritise autonomy, self-expression, and personal growth, millennials are more likely to demonstrate creative problem-solving (Gong et al., 2023). Millennials increasingly value experiences that contribute to personal and professional development, leading to greater engagement in creative tasks. Wong et al. (2017) suggest that the adaptability and openness of millennials play a crucial role in cultivating a growth mindset. This mindset enhances their creative potential by encouraging risk-taking and innovation. Dweck’s (Claro et al., 2016) theory on growth mindset emphasises the significance of resilience and a learning-oriented attitude, particularly for millennials who thrive in environments where constructive feedback is provided. Supportive settings that encourage a growth mindset positively impact millennials’ creative performance, as they value constructive feedback and continuous learning opportunities (Kong et al., 2020; Van den Broeck et al., 2021).

Gen Z employees, on the other hand, are more likely to gain the domain-specific knowledge and creativity-relevant abilities required for creative problem-solving when they approach learning with positivity. Because it promotes experimentation, flexibility, and a readiness to embrace failure as a necessary component of the creative process, an openness to learning is especially pertinent to creativity. The unique traits of Gen Z influence their attitudes toward education and, in turn, how they perform creatively. There is empirical evidence to support this association. Since learning attitudes serve as a basis for producing unique and useful ideas, Van den Berg and Feij (2003) showed that workers who participate in ongoing learning and skill development are more likely to exhibit creative performance. Positive learning attitudes can stimulate creativity in Gen Z learners, who prefer interactive, visual, and hands-on learning methods, especially when faced with assignments that call for flexibility and problem-solving. According to Seemiller and Grace’s (2016) research, Gen Z workers prefer learning that is applicable to their own needs, visually appealing, and practical. Employees from Gen Z can experiment with new abilities, use knowledge in novel ways, and investigate a variety of information sources thanks to these attitudes, which foster creativity. Gen Z’s emphasis on lifelong learning and development is another important component of their learning mindset. Gen Z was raised in an era of quickly evolving technology, so they recognize the importance of being up to date and constantly improving their abilities. The adaptability and curiosity needed for creative thinking are in line with this emphasis on lifelong learning. Per a Deloitte report from 2022, 94% of Gen Z workers believe that learning is essential to their professional success. Such a dedication to education inspires people to investigate novel viewpoints, question accepted wisdom, and look for innovative solutions at work. Nevertheless, in spite of these optimistic views on education, Gen Z workers could also be anxious and perfectionists, which could affect their ability to be creative. According to Twenge (2017), Gen Z may be unwilling to take creative risks due to their need for perfection, which is exacerbated by social media. This implies that although a positive outlook on education can foster creativity, Gen Z’s perfectionistic impulses and fear of failing could potentially stand in the way of reaching their maximum creative potential. We propose Hypotheses 6a and b.

H6a. 

Learning attitude is positively related to creative performance in millennials.

H6b. 

Learning attitude is positively related to creative performance in Gen Z.

3. Methodology

Data for this study were collected through an online survey conducted between September and November 2022. We used a convenience sampling method, selecting participants based on how accessible they were to us. Online surveys were sent out with a cover letter indicating the purpose of this study. The statistical population for this study comprised individuals from the working population in India. Specifically, millennials and Generation Z employees were targeted based on their professional experience. Millennials were defined as employees with at least 2 years of work experience, while Generation Z included employees with at least 6 months of work experience. This segmentation was designed to ensure that participants had sufficient exposure to workplace dynamics to provide meaningful insights. A total of 328 responses were collected, and 9 responses were removed due to missing data, resulting in 319 valid responses. The final sample includes 150 individuals from the millennial generation, comprising 66 females, 81 males, and 3 who preferred not to disclose their gender. For Generation Z, the sample consists of 169 individuals, with 67 females, 97 males, and 5 who preferred not to answer. Among the millennials, 56.6% have 2 to 5 years of experience, 31.3% have 5 to 10 years of experience, and 12.1% have more than 10 years of experience. Meanwhile, Generation Z consists of 46.7% of employees with 6 months to one year of experience, 36.6% with 1 to 1.5 years of experience, and 16.5% with 1.5 to 2 years of experience. Although the convenience sampling helped us gather a relatively large sample size, it limited our ability to ensure a representative sample of different generations of the Indian workforce. The working population in India shows a wide range of socio-economic and demographic diversity, with variations in education, industry, job roles, and geographic distribution. However, because of time and budget constraints, we did not include additional criteria regarding these factors, which may have limited the representation in the sample.

3.1. Measures

The constructs in this study were adopted from well-established scales. Previous studies have used and tested these scales for validity and reliability. All items are measured on a 5-point Likert scale with anchors ranging from strongly disagree (1) to strongly agree (5). Details of measures used in the study are described below:

3.1.1. Intrinsic Reward

Intrinsic reward is being motivated to work for work’s sake rather than to obtain material or extrinsic rewards. We used nine items adopted from Twenge et al. (2010) to measure this construct. The respondents were required to rate items such as “A job that is interesting to do”. The coefficient alpha for the scale was 0.934, which shows good reliability and validity.

3.1.2. Extrinsic Reward

Four extrinsic reward items were used to measure this construct. Employees were asked the extent to which they believe extrinsic rewards—such as pay, material possessions, and prestige—are the primary factors that motivate people to work. These items were adopted from Twenge et al. (2010). The coefficient alpha for the scale was 0.876, which shows good reliability and validity.

3.1.3. Learning Attitude

Learning attitude was measured using six items adapted from the study by Eva Kyndt et al. (2009). Respondents were required to rate items related to their learning attitude, such as “I think it is important to learn throughout my life”. The coefficient alpha for the scale was 0.903, which shows good reliability and validity.

3.1.4. Moral Importance of Work

The construct of moral importance of work was measured using four items adapted from Cogin (2012), which were used to measure the perceptions of the moral importance of work in both cohorts. A sample item includes “Working hard makes one a better person”. The coefficient alpha for the scale was 0.647, which shows good reliability and validity.

3.1.5. Creative Performance

This construct was measured using a four-item scale adapted from Ruscio et al. (1998). The respondents were required to rate items such as “Working to implement new ideas”. The coefficient alpha for the scale was 0.900, which shows good reliability and validity.

3.2. Analytical Approach

Structural equation modelling (SEM) was used to examine the hypothesized model for this study. We adopted a two-step analytical strategy (Hair et al., 2010) to test the hypothesized model depicted in Figure 1. The measurement model was first confirmed using confirmatory factor analysis (CFA), and we then performed SEM based on the measurement model to estimate the fit of the hypothesized model to the data.

In order to mitigate and assess the magnitude of common method variance (CMV), we followed statistical remedies as suggested by Podsakoff et al. (2003). In addition, respondents were assured of anonymity and confidentiality in order to reduce evaluation apprehension. Harman’s one-factor test with exploratory factor analysis was used to determine the magnitude of CMV. Six distinct factors accounted for 69 percent of the total variance, with the first factor explaining 20 percent. These results suggest little threat of common method bias and support the validity of all variables used in this study.

4. Results and Analysis

The discriminant validity and composite reliability of construct measures were assessed using confirmatory factor analysis (CFA), confirming whether a set of measured variables represents the latent theoretical constructs designed to measure (Hair et al., 2010). All factor loadings are greater than 0.6; latent variables’ composite reliability (CR) values exceed 0.7; and average variance extracted (AVE) values exceed 0.5, indicating the criterion is met. Results of CFA with maximum likelihood estimation of all constructs revealed a good fit between the proposed factor structure and data, with all factor loadings being statistically significant at p < 0.001, as shown in

Table 1. Results of confirmatory factor analysis.

Variable	Factor Loading	AVE	CR	Cronbach Alpha
IR1	0.822	0.66	0.95	0.934
IR2	0.860
IR3	0.737
IR4	0.857
IR5	0.857
IR6	0.784
IR7	0.824
IR8	0.798
IR9	0.770
ER1	0.883	0.73	0.91	0.876
ER2	0.863
ER3	0.846
ER4	0.823
LA1	0.827	0.68	0.93	903
LA2	0.873
LA3	0.846
LA4	0.843
LA5	0.762
LA6	0.785
MI2	0.689	0.49	0.79	0.647
MI3	0.787
MI4	0.645
MI5	0.664
JP1	0.823	0.74	0.92	0.884
JP2	0.881
JP3	0.895
JP4	0.853
CP1	0.881	0.78	0.94	0.9
CP2	0.886
CP3	0.898
CP4	0.877

.

Table 2. Descriptive statistics and correlations.

	Mean	SD	1	2	3	4	5	6
Intrinsic reward	3.84	0.86	1
Extrinsic reward	3.42	0.98	0.562 **	1
Learning attitude	3.96	0.80	0.587 **	0.514 **	1
Moral importance of work	3.42	0.4	0.141 *	0.187 **	0.170 **	1
Creative performance	3.80	0.71	0.286 **	0.305 **	0.327 **	0.172 **	1

Notes: N = 319, ** p < 0.01 (two-tailed test). * p < 0.05.

provides the variables’ descriptive statistics, zero-order Pearson correlations, and scale reliabilities. Since several of our constructs were conceptually related, we conducted additional analyses to establish the discriminant validity of our measures. The analysis shows that intrinsic reward is positively and significantly related to learning attitude (r = 0.587, p < 0.01) and the moral importance of work (r = 0.141, p < 0.05). Correlation analysis also shows that extrinsic reward is positively and significantly related to learning attitude (r = 0.514, p < 0.01) and the moral importance of work (r = 0.187, p < 0.01). Learning attitude is positively and significantly related to job performance (r = 0.327, p < 0.01) and creative performance (r = 0.409, p < 0.01). The moral importance of work is positively and significantly related to job performance (r = 0.172, p < 0.01) and creative performance (r = 0.241, p < 0.01).

4.1. Measurement Model

As shown in

Table 3. Summary of model fit indices.

Fit Index	Measurement Model	Structural Model	Recommended Criteria
χ2/df	2.068	2.074	≤5.00
SRMR	0.072	0.076	≤0.08
GFI	0.873	0.870	≥0.80
CFI	0.941	0.940	≥0.80
IFI	0.942	0.941	≥0.80
RMSEA	0.058	0.058	≤0.10

Note: χ² = Chi-square; df = degrees of freedom; SRMR = standardized root mean square residual; CFI = comparative fit index; GFI = goodness-of-fit statistic; RMSEA = root mean square error of approximation.

, the model fit indices of the measurement model justify the examination of the structural model (χ²/df = 2.06; SRMS = 0.072; GFI = 0.873; CFI = 0.941; RMSEA = 0.058). We reported multiple indices in assessing the model fit, as suggested by SEM scholars outlined earlier (Bollen, 1989). These indices indicate the extent to which a research framework provides an improved overall fit relative to a null or independent model in which the correlations among observed variables are assumed to be zero. They also provided evidence that further examination of the structural model was required.

4.2. Structural Model

The results from structural modelling indicate that the hypothesized model fits the data well (see Table 3) (χ²/df = 2.074, p ≤ 0.001; SRMR = 0.0762, GFI = 0.870, CFI = 0.940, IFI = 0.941, RMSEA = 0.058). Figure 2 and

Table 4. Path analysis.

Path	Full Model	Gen Y	Gen Z
Intrinsic reward- > Moral importance of work	0.028	−0.020	0.064
Extrinsic reward- > Moral importance of work	0.274 ***	0.128	0.390 **
Intrinsic reward- > Learning attitude	0.565 ***	0.517 ***	0.612 ***
Extrinsic reward- > Learning attitude	0.192 ***	0.238 **	0.390 +
Moral importance of work- > Creative performance	0.180 *	−0.031	0.383 ***
Learning attitude- > Creative performance	0.328 ***	0.354 ***	0.241 **
Normed chi-square	2.074	1.712
CFI	0.94	0.923
GFI	0.87	0.807
RMSEA	0.058	0.047
SRMR	0.076	0.087

Notes: N = 319. The model was estimated simultaneously. Standardized estimates are reported. + p < 0.1, * p < 0.05, ** p < 0.01, *** p < 0.001 two-tailed.

display the overall structural model with path coefficients.

Table 5. Hypothesis testing results for the research model.

Hypotheses	Relationships	Hypotheses Results
		Millennials	Gen Z
H1	Intrinsic reward -> Moral importance of work	H1a (Not supported)	H1b (Not supported)
H2	Intrinsic reward -> Learning attitude	H2a (Supported)	H2b (Supported)
H3	Extrinsic reward -> Moral importance of work	H3a (Not supported)	H3b (Supported)
H4	Extrinsic reward -> Learning attitude	H4a (Supported)	H4b (Supported)
H5	Moral importance of work -> Creative performance	H5a (Not supported)	H5b (Supported)
H6	Learning attitude -> Creative performance	H6a (Supported)	H6b (Supported)

summarizes the validity of all the hypotheses.

The effect of intrinsic rewards on the moral importance of work is insignificant overall (β = 0.028, p < 0.1), with similar results for both cohorts, millennials (β = −0.020, p < 0.1) and Gen Z (β = 0.064, p < 0.1). These findings do not support Hypotheses H1a and H1b, indicating that intrinsic rewards do not significantly influence the perception of moral importance for either group. Conversely, intrinsic rewards have a strong and significant positive effect on learning attitude (β = 0.565, p < 0.001) across both generations, millennials (β = 0.517, p < 0.001) and Gen Z (β = 0.612, p < 0.001). These results support Hypotheses H2a and H2b, emphasizing the role of intrinsic rewards in fostering a positive learning attitude.

Extrinsic rewards positively affect the moral importance of work overall (β = 0.274, p < 0.001), but this varies by generation. For millennials, the effect is insignificant, not supporting H3a. For Gen Z, the effect is positive and significant (β = 0.390, p < 0.005), supporting H3b. This suggests that Gen Z associates extrinsic rewards with greater moral importance, unlike millennials. The effect of extrinsic rewards on learning attitude is significant and positive overall (β = 0.192, p < 0.001), with differences between cohorts: millennials (β = 0.238, p < 0.005) show a strong positive effect, while Gen Z (β = 0.390, p < 0.09) shows a weaker but still positive relationship. These results support H4a and H4b, indicating that extrinsic rewards positively influence learning attitudes in both groups.

The overall effect of moral importance on creative performance is significant and positive (β = 0.180, p < 0.01), but this varies by cohort. For millennials, the effect is insignificant, not supporting H5a. For Gen Z, it is significant and positive (β = 0.383, p < 0.001), supporting H5b. This suggests that Gen Z relates moral significance to improved creative performance, in contrast to millennials. Finally, learning attitude positively and significantly affects creative performance (β = 0.328, p < 0.001) across both cohorts: millennials (β = 0.354, p < 0.001) and Gen Z (β = 0.241, p < 0.005). These findings support H6a and H6b, highlighting the consistent role of learning attitude in improving creative performance for both groups.

5. Discussion

5.1. Intrinsic Rewards and Moral Importance of Work

Results indicate that there is no significant relationship between intrinsic rewards and the moral importance of work in millennials, thus not supporting hypothesis 1a (H1). Research has suggested that millennials place a higher moral importance on work compared to the previous generation (Weber, 2017). However, there are also contradictory findings indicating that millennials may exhibit narcissistic traits and show less concern for others (Twenge et al., 2010). Even when millennials have a higher moral importance of work, intrinsic rewards might not affect it. They view a career as part of their identity itself, and they seek a sense of fulfilment. Their commitment to growth often comes from an internal drive to reach their potential rather than from a sense of recognition. Results also show that intrinsic rewards are not significantly related to the moral importance of work among India’s Gen Z, thus rejecting Hypothesis 1b (H1). Studies suggest that several sociocultural, economic, and generational factors contribute to this complex relationship (Aggarwal et al., 2022). Due to the rising costs of living, high levels of competition, and an unpredictable job market, every generation, including Gen Z, in India faces unique economic pressures (Raja et al., 2022). Therefore, in the fast-paced economy today, Gen Z in the workforce emphasizes job security, financial stability, and career progression, which often overshadow the pursuit of intrinsic rewards tied to the moral importance of work. Within this context, “morally important work” might take a backseat to securing a stable livelihood. Consequently, this cohort might focus less on the moral importance of work, leading to a weaker connection between intrinsic rewards and the moral importance of work.

Secondly, due to the collective family values in the Indian cultural setup, career choices are often shaped by familial expectations (Maan & Srivastava, 2023). Therefore, another possible reason for the insignificant relationship between the two variables is that many millennials and Gen Zs might experience a sense of responsibility to contribute financially to their households, sometimes limiting their ability to prioritize the moral importance of work. This is different from Western society as it is an individualistic society, with a greater focus on self-determined goals and personal ethical alignment. Because of the emphasis on individual values and ethical fulfilment in Western cultures, intrinsic rewards and moral importance frequently coincide. Millennials are more likely to pursue occupations that fulfil personal goals while also contributing positively to society (Wallace & Lowe, 2011). Also, it is important to note that social media platforms like Instagram, LinkedIn, and YouTube heavily influence the way Gen Z views work in India, shifting their priorities towards visible achievements and away from intrinsic, value-based motivations (Gurunathan & Lakshmi, 2023). Thus, the importance of intrinsic rewards linked to the moral importance of work may be diminished as this technology-driven generation might favour jobs that offer visibility, recognition, and rapid growth above those with intrinsic moral or social value. Lastly, with the rise of platforms for independent work and personal branding, many in Gen Z seek to fulfil their moral aspirations outside traditional work settings as compared to other generations (Raja et al., 2022). Consequently, intrinsic rewards in a traditional job setting may not necessarily align with a sense of moral importance, as Gen Z separates personal purpose from their professional roles.

5.2. Intrinsic Rewards and Learning Attitude

Results show that intrinsic rewards positively influence millennials’ learning attitudes, supporting Hypothesis 2a (H2). Millennials grew up with technological advancement in the era of constant change, which made them value learning as one of the most important aspects of a job, and they are motivated to learn if they are provided with intrinsic rewards such as challenging jobs and more autonomy. Millennials tend to learn more when work is interesting, aligned with their values and provides opportunities for socialization (Lowe et al., 2008; Real et al., 2010). Interestingly, in the West, learning is driven by curiosity and self-improvement, with less focus on immediate external outcomes. Interdisciplinary and creative learning is encouraged, often crossing traditional boundaries. Moreover, individuals embrace lifelong learning more for personal fulfilment and adaptability in a rapidly changing world (Wallace & Lowe, 2011). For India’s Gen Z, entering a competitive job market with a strong focus on personal growth, intrinsic rewards serve as powerful motivators in fostering a positive approach to learning (Priyadarshini et al., 2024), therefore supporting Hypothesis 2b (H2). Employees are more inclined to approach learning with zeal and dedication if they believe their employment enables them to acquire abilities that complement their values and passions (Sharma & Pandit, 2020). Learning is often seen by this generation as a crucial component of self-actualization and personal development. Therefore, intrinsic benefits are maximized, and a more proactive and engaged learning attitude results when organisations provide environments that prioritise learning for both professional and personal development.

In contrast to other generations, Gen Z are digital natives, meaning they are naturally accustomed to lifelong learning via social media, online resources, and digital platforms. Consequently, Gen Z workers are frequently more likely to look for chances to develop their abilities on their initiative (Mude & Undale, 2023). These intrinsic rewards are powerful drivers of learning attitudes, as they feed into an individual’s sense of competence and mastery. Jobs that provide flexibility and a better work–life balance are becoming more and more sought after by Gen Z workers in India (Aggarwal et al., 2022). Compared to earlier generations, they are frequently less willing to forgo their own time or well-being in favour of outside benefits like promotions or pay raises. Rather, intrinsic rewards are highly valued, such as the option for flexible learning routes, the freedom to work on meaningful projects, or the chance to work from home. Employees are more likely to participate in self-directed learning when they have the freedom to choose their learning speed and customise their professional development to fit their interests and objectives. Their intrinsic motivation is increased by this autonomy, which results in a more positive attitude towards learning. Given that Gen Z in India prefers work settings that encourage autonomy and task control, psychological empowerment and ownership are essential for intrinsic motivation (Sharma & Pandit, 2020). In the end, Gen Z places a high value on personal development and fulfilment, looking for positions that support ongoing self-directed learning and skill diversification.

5.3. Extrinsic Rewards and Moral Importance of Work

Results show that Hypothesis 3a (H3) is not supported as there was no significant link between extrinsic rewards and millennials’ moral importance of work, contrary to our hypothesis of the negative impact of extrinsic rewards on the moral importance of work. This aligns with research that suggests millennials prioritise personal fulfilment and purpose over traditional extrinsic motivators like salary or status (Twenge et al., 2010; Wray-Lake et al., 2011). Unlike previous generations, millennials see work as part of a balanced lifestyle and define success by values and meaningful engagement, not financial gain (Gibson & Sodeman, 2014; Taylor, 2012). Millennials prefer environments emphasizing personal relevance, growth, and collaboration over external rewards (Barron & Hulleman, 2015), indicating a shift toward deriving meaning from work itself. Extrinsic rewards, such as pay, benefits, status, and recognition, are sometimes seen as distinct from a person’s moral principles or internal motives. Therefore, in India, work is often seen as morally important when it benefits the family or community, with extrinsic rewards seen as a measure of that contribution. However, in the West, work is morally important when it aligns with personal ethics and societal impact, with extrinsic rewards being secondary. Also, sacrificing extrinsic rewards for moral significance is more acceptable in the West compared to Indian society, reflecting a stronger focus on individual autonomy and ethical consistency (Wallace & Lowe, 2011).

Interestingly, for Gen Z in India, extrinsic rewards are often significantly related to the moral importance of work. Results show that we found support for Hypothesis 3b (H3). In order to bridge the gap between extrinsic incentives and moral purpose, Gen Z views taking up well-paying or financially secure jobs as consistent with their moral obligation to provide for their families or to plan for their future (Chillakuri, 2020). In this sense, having financial security and stability—a major extrinsic reward—carries moral weight since it allows individuals to fulfil their personal and familial responsibilities. Career prestige also has a huge impact on an individual’s reputation and perceived level of achievement in Indian society (Fouad et al., 2016). In conventional family systems, where employment choices reflect family status, Gen Z frequently views meeting these cultural expectations as a moral obligation, as the prestige of one’s job or career path holds significant importance, often shaping an individual’s reputation and perceived success (Vijayalakshmi & Manorselvi, 2024). Extrinsic incentives are thus linked to ethically right decisions, especially when those decisions improve the social standing of the individual and their family. For many Indian Gen Z members, fields such as healthcare, technology, and environmental sustainability offer both lucrative careers and roles of societal significance (Das & Malik, 2024). High salaries and recognition in these areas are viewed as validations of their social impact. For instance, pursuing a well-paid technology career may symbolize not only financial achievement but also a contribution to India’s technological progress—a morally significant goal for many young Indians. Here, extrinsic rewards like salary and status serve as markers of the work’s moral value, aligning personal success with broader societal advancement and reinforcing a sense of purpose. Moreover, social media shapes Gen Z’s views on success by linking job titles, income, and achievements with moral and social impact. Visible markers of success, like high salaries, are seen as indicators of meaningful contribution, reinforcing the idea that extrinsic rewards reflect social value (Gurunathan & Lakshmi, 2023). Lastly, Gen Z in India views financial independence as a way to break free from conventional norms and as a personal objective (Sharma & Qazi, 2020). Many people believe that having money gives them the ability to support their loved ones, make community investments, and support social causes. Extrinsic benefits are therefore morally significant and help to match financial objectives with wider social consequences.

5.4. Extrinsic Rewards and Learning Attitude

Extrinsic rewards positively influence millennials’ learning attitudes, supporting Hypothesis 4a (H4). Millennials are often considered more demanding and entitled. They are motivated by extrinsic rewards, and they seek opportunities that provide extrinsic rewards with interesting work and learning opportunities (Lyons et al., 2007; Twenge et al., 2010; Winter & Jackson, 2016). Millennials entered the workforce during the economic downturn, faced many setbacks, and ended up receiving less opportunity for growth and earning less compared to the previous generation. As a result, millennials are looking at faster growth. They are ready to work hard and learn the necessary skill sets if they receive advancement opportunities, immediate recognition, and fair compensation (Gursoy et al., 2013). Therefore, in India, extrinsic rewards drive a utilitarian approach to learning, with a focus on job-specific skills that ensure financial and career advancement. Moreover, learning is often concentrated in high-paying and high-demand fields (e.g., IT, medicine, finance). Economic pressures and societal expectations heavily influence learning, often prioritizing short-term gains, and lifelong learning is often driven by the need to remain competitive in industries where extrinsic rewards are directly tied to skill relevance. On the contrary, in the West, extrinsic rewards are balanced with intrinsic motivations like curiosity, creativity, and adaptability, leading to a more exploratory learning attitude. Due to economic stability, Westerners have greater flexibility to choose learning paths in a broader range of fields, including creative and interdisciplinary areas, that align with personal values and long-term goals. Lifelong learning reflects a growth-oriented mindset, where extrinsic rewards complement the joy of intellectual exploration and adaptability (Murayama, 2022).

On the other hand, Gen Z in India grew up in a time of digital revolution, economic insecurity, and shifting work cultures, and results show that traditional motivators like extrinsic rewards are still relevant for them. However, they do not have the same impact on their learning attitudes as they did for earlier generations. Therefore, even though extrinsic rewards such as pay raises, bonuses, recognition, and promotions can improve performance and cause short-term behavioural changes, they have a more complex and limited effect on developing a long-term, positive learning attitude. Results also provide partial support for this Hypothesis 4b (H4). Research on Gen Z’s work preferences indicates that they are motivated by purpose and fulfilment rather than just financial incentives, unlike the older generations (Ganguli & Padhy, 2023). They are rather more focused on intrinsic factors such as personal growth, autonomy, and the ability to make a meaningful contribution at work (Aggarwal et al., 2022). For instance, a large number of Gen Z employees in India are drawn to jobs that support their personal beliefs, offer flexibility, and offer chances for skill improvement. Extrinsic benefits, such as bonuses or pay raises, may not effectively promote a deep, long-term learning mindset if they are just linked to performance and ignore personal development. They may encourage involvement in particular training courses or instantaneous upskilling initiatives, but they may not always encourage the ongoing, self-directed learning attitude that Gen Z cherishes.

According to self-determination theory (Deci & Ryan, 2012), financial incentives may initially encourage training and skill development, but once the benefits are received, motivation declines. On the other hand, long-lasting motivation and consistent learning engagement are fostered by intrinsic incentives, such as a sense of accomplishment. For example, Gen Z workers might enrol in a certification program or training course if it offers a bonus or increase. However, if the learning experience was driven more by the extrinsic incentive than by the satisfaction of learning itself, their desire to continue their education may decline after they receive the reward. On the other hand, intrinsic rewards—like a feeling of achievement or personal mastery—produce motivation that lasts longer and a more persistent interest in learning. Public recognition, such as praise from peers or leaders and career milestones like promotions, can motivate employees to improve their performance and acquire new skills. However, the connection between recognition and learning attitudes is complex (Maan & Srivastava, 2023); if the acknowledgement is perceived as mere external validation rather than tied to meaningful learning, it may not foster a lasting commitment to growth. For instance, a Gen Z employee might receive public praise for completing a training program that they found unfulfilling, leading to minimal engagement with future learning opportunities. Consequently, while recognition can encourage learning for acknowledgement, it does not always cultivate a genuine interest in continuous development. In other words, while recognition can incentivize Gen Z employees to pursue learning for the sake of gaining acknowledgement, it does not necessarily foster a genuine interest in continuous development.

5.5. Moral Importance of Work and Creative Performance

In India, cultural shifts are becoming evident as millennials and Gen Z enter the workforce, moving away from traditional values towards individualism and personal fulfilment (Hameed & Mathur, 2020). Both these cohorts increasingly prioritise values-driven, ethically sound work, which enhances job satisfaction and fosters creativity. Results show that the moral importance of work is a significant driver of creative performance for both millennials and Gen Z in India, thus supporting Hypotheses 5a and 5b (H5). Organisations that emphasize moral importance—such as through fair trade, ethical labour, or sustainability—tend to cultivate a more innovative workforce, as employees feel a stronger alignment between their values and the company’s goals (Carroll, 1991). The desire to make a difference, the internal drive that comes from being in line with one’s own beliefs, and the sense of empowerment that comes from supporting a greater cause are the foundations of the relationship between moral purpose and creativity (Wang, 2019). Motivated by ideals like environmental sustainability, ethical responsibility, and social effect, both generations are more inclined to think creatively when they believe their work has moral significance (Pandita et al., 2023). However, when moral importance is tied to traditional expectations or rigid structures, it limits creative freedom within the Indian context. For instance, in hierarchical organisations, creative performance can take a backseat to fulfilling predefined moral or professional obligations. Conversely, the focus on autonomy and empowerment in Western workplaces provides fertile ground for creativity, especially in morally significant work contexts. They value workplaces that encourage experimentation and tolerate failure more as a pathway to innovation compared to the Indian society (Kwall, 2010).

Also, the ethical significance of work has emerged as a key motivator for employee innovation in India, where many companies are placing a greater emphasis on corporate social responsibility (CSR) efforts (Dhanesh, 2015). When millennials feel that their work has a larger social impact or aligns with their values rather than merely with financial gain, it naturally enhances their engagement and the desire to contribute creatively (Aboobaker et al., 2020). Many millennials in India grew up with traditional family values that place a strong emphasis on accountability, morality, and the social worth of one’s position. This fosters a mindset in which one views work as a way to positively impact others as well as a personal goal. Their job can become more important and helpful to society as a result of this sense of duty, which fuels creativity (Bhattacharya & Gandhi, 2020). Moreover, millennials’ desire for self-expression and individuality in the workplace is in line with the need for autonomy and freedom that creative performance frequently demands (Yousaf et al., 2023). Furthermore, being exposed to international concepts and technology heightens their consciousness of moral and social concerns, motivating them to tackle problems in novel ways (Jha et al., 2019).

Similarly, Gen Z employees tend to see firms through a socially conscious lens, and CSR programs that emphasize social, environmental, and ethical standards strike a deep chord with them (Pandita & Khatwani, 2022). Organizations that actively engage in socially responsible activities—such as supporting education for underprivileged children, promoting gender equality, or reducing their carbon footprint—tend to foster greater creativity among employees, especially Gen Z. This CSR-driven environment cultivates a sense of belonging and motivates Gen Z employees to align their creativity with their values, leading to innovative ideas aimed at achieving a greater good (Narayanan, 2022). Also, when Gen Z perceives their work as morally significant, they experience greater psychological empowerment, which is linked to enhanced creative performance. This sense of empowerment stems from a clear sense of meaning and direction, enabling Gen Z workers to take creative risks and experiment with new ideas. For instance, Gen Z employees in India who work for companies advocating for causes like gender equality are more likely to engage in innovative thinking, as their belief in contributing to a larger moral mission boosts their creative confidence. The moral significance of work enhances their creative performance by fostering intrinsic motivation; when employees feel their work reflects their values, they are more likely to invest effort in innovative solutions (Rampen et al., 2023). For example, a Gen Z employee in a company addressing climate change is motivated to creatively contribute to reducing the carbon footprint, driven by a sense of ownership and responsibility.

5.6. Learning Attitude and Creative Performance

Considering generational traits, cultural influences, and the specific challenges of today’s work environment, results show that learning attitude is significantly related to creative performance for both millennials and Gen Z in India, thus supporting Hypotheses 6a and 6b (H6). Both millennials and Gen Z are known for having a growth mentality: the conviction that aptitude and intelligence can be enhanced with diligence, education, and persistence (Jayakani, 2024). This thinking is essential for developing creativity because it pushes people to tackle issues with resilience and curiosity. When workers believe that their creative abilities may be enhanced through employment and education, they are more likely to try new things, take risks, and produce (Sharma & Qazi, 2020). Therefore, a strong learning mentality is directly associated with millennial and Gen Z professionals’ willingness to think creatively and experiment with new ideas in India. Creativity hinges on the ability to solve problems innovatively, and both millennial and Gen Z employees approach work challenges with a strong learning mindset focused on discovering novel solutions (Li et al., 2021). Moreover, to be competitive, both millennial and Gen Z workers in India know that they must constantly improve their abilities, whether through formal training, online courses, or self-directed learning (Tarab, 2020). The pragmatic learning mindset of Indians can improve creative performance when it comes to tackling real-world challenges or creating inside established frameworks. For example, developing technological skills to create new software or solutions is a frequent creative outlet. However, the emphasis on rote learning and standardized education frequently restricts opportunities for creative expression. Many individuals may struggle to think divergently since they are focused on obtaining measurable outcomes. Conversely, the exploratory learning attitude of Western millennials directly supports creative performance, as they value curiosity, experimentation, and learning for personal growth. Moreover, creative performance is enhanced by a willingness to acquire knowledge across various disciplines and embrace failure as part of the learning process. For example, pursuing courses in both technology and the arts can lead to innovative applications like UX design or creative coding. Westerners are more likely to apply their knowledge to unorthodox or innovative projects as a result of an education system that values critical thinking and uniqueness (Rusok et al., 2023).

Also, millennials and Gen Z in India have to constantly deal with ongoing change in the workplace in a nation that has seen tremendous technical advancement and globalization. Showcasing a good learning attitude, they can adjust and stay relevant (Maan & Srivastava, 2023). They may also approach tasks in new ways because they are receptive to new knowledge, tools, and methods. This flexibility frequently leads to new ideas and creative solutions. Their learning attitude drives them to seek diverse perspectives and refine ideas collaboratively, which is particularly valuable in India’s diverse teams. For instance, a Gen Z employee in a product innovation design team may engage in industry webinars and study design trends, enhancing their problem-solving skills. This commitment to continuous learning empowers them to introduce new ideas and concepts that foster creativity within the team. In the current globalised economy, industries are changing at a rate never seen before. Both millennials and Gen Z employees in India are aware that staying on top of trends is essential for both career advancement and company success (Tarab, 2020). Their dedication to lifelong learning and their capacity for adaptation in the face of change are motivated by this knowledge. Many millennials in India are keen to acquire new skills that expand their capabilities since they see their jobs as a means of personal growth. Because of their desire to better themselves, they actively seek out criticism, upskill, and learn new things. Their competence is enhanced by this ongoing development, which also gives them the ability to think creatively and innovatively (Espinoza & Ukleja, 2016).

Similarly, to remain current, Gen Z workers in the Indian software development sector would frequently refresh their knowledge of cloud computing, cybersecurity, or programming languages. This flexibility improves their capacity to create innovative software solutions that satisfy evolving needs or find more effective answers to issues, which helps the business expand and succeed. In India, Gen Z workers are also often more motivated by the sense of accomplishment from learning new skills and applying them creatively than by monetary rewards or promotions (Pandita et al., 2023). Their independence and intrinsic motivation drive them to generate innovative ideas without waiting for guidance. The learning attitude of Gen Z workers in India significantly enhances their creative performance in the workplace. Their eagerness to learn and adapt enables them to tackle problems with creativity and resilience. In an environment shaped by technological advancements and global trends, organisations that foster a culture of continuous learning can leverage the growth mindset and intrinsic motivation of Gen Z employees for innovative solutions and competitive advantages (Racolţa-Paina & Irini, 2021). By investing in learning opportunities and encouraging autonomy, organisations can effectively harness the creativity and innovation of this valuable workforce.

6. Practical Implications

Millennials have emerged as the backbone of many Indian companies, constituting 70% of the workforce (Great Place to Work, 2023). With the increasing working population of millennials in the workplace and many Gen Z entering the workforce, it is important for managers to understand the potential differences between these generations. Recognizing and valuing these differences will help managers attract, motivate, and reward employees more effectively, leading to better organisational results, as old assumptions about what employee’s value in the workplace don’t always apply to Gen Y (Trunk, 2007). This study highlights that offering competitive salaries alone may not be enough for organisations recruiting and retaining millennials and Gen Z employees. Instead, organisations should strive to establish work cultures that provide intrinsic benefits and opportunities for people to participate in work that they consider ethically essential. Giving opportunities to the employees to participate in CSR initiatives and ethical business practices and allowing them to have a social impact can dramatically improve their job satisfaction and retention among this generation (Acheampong, 2021). Moreover, Gen Z is more attracted to job roles emphasising innovation, problem-solving, and continuous learning—hallmarks of intrinsic motivation—when coupled with a clear ethical mission. Therefore, organisations that successfully align intrinsic rewards with moral importance will likely see higher engagement and lower turnover among Gen Z employees (Deloitte, 2022). Millennials and Gen Z places high importance on lifelong learning; therefore, organisations should also incorporate incentives that promote learning. Considering the traits of Gen Z workers, combining intrinsic motivators with extrinsic rewards might be the best way to promote a suitable learning mindset (Khan & Al-Shibami, 2019). In addition to reward programs honouring learning milestones and accomplishments, this could entail funding more education, certificates, or access to training tailored to a particular profession. Furthermore, providing opportunities for meaningful learning experiences that align with Gen Z values can improve the efficacy of extrinsic rewards. For example, offering learning programs focusing on social impact, sustainability, or personal development—all of which appeal to Gen Z’s drive for purpose—can make extrinsic rewards more meaningful and encourage a positive learning attitude. Also, extrinsic rewards, such as paid time off for volunteering or matching contributions to charitable causes, might, for instance, strengthen the link between an employee’s values and the corporate culture, encouraging them to match their work with more general ethical objectives (Aggarwal et al., 2022).

Appreciating inventive contributions and creative ideas can be used as an extrinsic reward (bonuses or public acknowledgement) and an intrinsic one (recognizing an employee’s growth and self-worth). Employees will be encouraged to contribute creatively by this dual approach, which guarantees that their work is appreciated and rewarded in a way that aligns with their personal purpose and the organisation’s ethical ideals (Poynton, 2020). Given that Gen Z and millennials are both extremely sensitive to fairness, it is imperative that reward distribution be transparent. Building trust and a solid bond between employees’ personal values and the organisation’s reward systems is facilitated by ensuring that incentives are fair, merit-based, and correlated with performance and adherence to ethical standards. Organizations should link work with ethical values and emphasize purpose-driven jobs that correspond with Gen Z’s need for meaningful contributions to improve creative performance among these generations in India (Bulut & Maraba, 2021). Offering job roles that align with these ideals can greatly increase participation and innovation. While utilizing technology allows employees, particularly Gen Z, to explore and implement new ideas, cultivating a collaborative and inclusive culture that values multiple perspectives also helps to foster creative thinking (Mude & Undale, 2023). Therefore, employers should give staff members access to state-of-the-art tools and platforms for innovation to try new things and apply them to real-world problems, improving their creative output. Encouraging and rewarding creative work guarantees motivation and strengthens the process and inventive solutions. Even though managers of organisations are advised to consider generational differences when managing different generations working together, they should be cautious. People’s beliefs and expectations about age and generation can lead to the establishment of stereotypes that interfere with work-relevant processes (Rudolph et al., 2021).

7. Theoretical Implications

This study shows that self-determination theory (SDT) provides a useful framework to better understand the role of intrinsic and extrinsic rewards among India’s Gen Z and millennials. Deci and Ryan established SDT, which holds that people are motivated by both intrinsic (internally driven) and extrinsic (externally driven) elements, with a significant emphasis on autonomy, competence, and relatedness as essential psychological demands (Deci et al., 2017). When these needs are addressed, people are more likely to experience intrinsic motivation, which leads to greater satisfaction, engagement, and creative performance, especially in jobs that are seen as valuable, ethical, and personally significant. SDT proposes that autonomy boosts intrinsic motivation by instilling a sense of ownership in one’s work. For millennials, this translates to valuing purpose and ethical alignment in their professions, as they seek jobs that allow them to “be creative and good” while simultaneously pursuing their personal goals. Gen Z’s demand for autonomy is even stronger (Larkin, 2017). SDT contends that Gen Z’s intrinsic motivation is inextricably linked to whether their employment corresponds with their values and helps them express their distinct selves (Sibarani & Meilani, 2021). In India, where traditional family expectations can apply strong external constraints, Gen Z’s emphasis on autonomy signifies a change away from achieving societal or familial standards and toward stressing individual ethical alignment and moral importance.

With respect to learning attitude and creative performance, millennials see competence—feeling competent and capable—as a primary motivator in both learning and creative work. They prefer to perceive competence in terms of external markers of success, such as grades or promotions, but they are also inwardly motivated to acquire abilities that match with long-term career objectives or hobbies (Waworuntu et al., 2022). In creative industries, they strike a balance between internal happiness and external confirmation of success, such as accolades or awards. On the other hand, Gen Z values practical, skill-based learning. They prefer educational programs that emphasize real-world applications and hands-on experience, and they are driven when they can apply their knowledge to relevant settings. Gen Z’s creativity thrives in dynamic, technology-driven situations where digital and interpersonal skills combine to produce collaborative, value-driven results (Aggarwal et al., 2022).

Generational views and intrinsic and extrinsic incentives align, reflecting broader changes in Indian culture, such as changing expectations for self-expression, ethical work practices, and work–life balance. When it comes to the moral significance of work, attitudes toward learning, and innovation, Gen Z in India exhibits a distinctive fusion of internal values and extrinsic pragmatism that sets them apart from millennials (Pandita, 2022). While both generations place a growing emphasis on purpose and ethical alignment, Gen Z’s increased social and environmental consciousness signals a transition toward an even greater need for work that is real and meaningful. The application of SDT to workplace motivation predicts that organisations that promote autonomy, competence, and relatedness will be better able to meet the motivational demands of both millennials and Gen Z. For millennials, giving possibilities for advancement and matching business purposes with ethical ideals can boost intrinsic motivation and commitment (Gulyani & Bhatnagar, 2017). Companies must prioritize genuine social responsibility, flexible working circumstances, and meaningful connections with peers when marketing to Generation Z. Both generations flourish in workplaces that combine extrinsic rewards with values-based activities, which can increase dedication and inventiveness.

8. Limitations and Future Direction

This study is not without limitations. Using a cross-sectional research design, we collected data only once. However, as these cohorts develop in their jobs and take on greater responsibilities, intrinsic–extrinsic rewards, the moral importance of work, and learning attitudes may evolve over time. Future studies can carry out longitudinal or time-lagged studies to investigate the impact of intrinsic and extrinsic rewards and the ethical value of work shift as both the cohorts progress in their careers, gain experience, and potentially face competing pressures (e.g., financial stability, leadership roles).

Secondly, we have treated millennials and Gen Z as homogenous groups, overlooking the diverse range of individual differences within these cohorts. Several other demographic factors, such as gender, socioeconomic background, and educational attainment, might have an influence on how strongly individuals prioritize rewards and the moral importance of their work. Moreover, the intersection of these factors with personal identity (e.g., race, sexual orientation) could lead to distinct perceptions and motivations, which would be interesting to examine.

Thirdly, future research should investigate how different industries or sectors in which these cohorts work impact the connection between both types of rewards, learning attitude, and moral significance of their roles. Fourthly, in this study, rewards and moral importance of work have been studied primarily from the employee’s perspective, and we did not take organisational factors into account that either facilitate or hinder the integration of these elements. Studies ahead could examine how organisational structures, leadership practices, and workplace policies can either foster or diminish the interrelationships examined for different cohorts.

With the rise of social media usage and remote work environments, especially post-pandemic, there is a dire need to understand how social media influences an individual’s creativity and their approach to learning and whether rewards and the moral importance of work are impacted when employees work in virtual environments. Therefore, researchers should focus on how remote work and other technological tools influence the availability of rewards and whether moral alignment becomes more or less significant when employees work outside traditional office settings. Lastly, this study examined the generational differences within the Indian context. Due to the limited number of studies in Asia on this topic, it would be interesting to replicate the studies in other Asian countries and do cross-cultural comparative analysis research and explore the interrelationships across different cultural contexts for different generational cohorts. Addressing these gaps can provide more actionable insights for organisations aiming to attract talent globally.