Employee engagement among generation Y had become the major problem in Malaysia. This problem need to be addressed urgently in order to reduce the job hopping and work attitudes among the generation Y as job hopping has become the main trend. This paper attempts to determine the effects of employee engagement such as employee involvement, organizational culture and decision making on the job satisfaction among generation Y in small and medium enterprises companies. A survey method was used to collect 396 respondents from small and medium enterprises employees in Malaysia. The factor analysis was conducted and cooperation was obtained as the result which forms new independent variable under employee engagement. The result of the correlation analysis has indicated that the independent variables of employee involvement, organizational culture, decision making and cooperation had positive significant relationship on job satisfaction among generation Y. The regression results indicate that cooperation which is the new independent variable had the highest significant value with all the dimensions of job satisfaction which are security and safety, belonging and love and need of self-esteem. This study has given an important role to the organization in developing strategy for their human resource development to develop their talent management among generation Y and hence, enhance organizational performance and effectiveness.
