Purpose This study aims to explore the influence of psychological empowerment on the career competencies of Generation Y employees and the relationship between empowerment and career satisfaction. Design/methodology/approach Generation Y working in the hospitality industry comprised the target population of this study. A total of 500 questionnaires were distributed, and 458 valid questionnaires were obtained. Structural equation modeling was used to analyze the data and to test the causal relationships among the constructs. Findings Psychological empowerment was positively related to career competencies and career satisfaction. Moreover, the four dimensions of psychological empowerment, namely, impact, competence, self-determination and meaning, also contributed positively to the career competencies and satisfaction of Generation Y. Findings indicated that empowerment was an important predictor of career management among young employees. Research limitations/implications The limitation of this study is the use of convenience sampling method, with participants selected according to their accessibility. Future studies should collect a reasonably broad sample by using probability sampling methods. Practical implications The findings of this study provided useful guidance to manage and empower Generation Y employees. First, the importance of psychological empowerment to enhance the career competencies and satisfaction of young employees was proved. Second, this study provided detailed information on how to empower Generation Y employees. Third, this study may help to retain qualified employees by empowering and supporting their career development. Social implications This study highlighted the importance of empowerment in managing Generation Y employees. Once Generation Y employees are trusted and empowered, they tend to perform well in both their job and career. Findings indicated that the four factors of psychological empowerment had different contributions to careers of the employees. Results suggest that managers should attempt to assign challenging and meaningful tasks to young employees and to increase their responsibility and impact in the organization. To attract and retain qualified young employees, career competences should be enhanced to achieve a level of career satisfaction. Originality/value This study presented new findings on Generation Y and the outcomes of psychological empowerment. Initial evidence on the contribution of empowerment to the career issues of the new generation was proved. The findings outlined detailed information on psychological empowerment by exploring the function of its four factors. The results may serve as a foundation for future research on empowerment and career issues of Generation Y.
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