Over the last couple of years, the realities of massive generational change have dawned on many business leaders. While the issues of an ageing population and a new attitude to work have literally been emerging for a generation, it has been a sudden awakening for many organizations. In fact dealing with these demographic changes and specifically recruiting, retaining and managing 'Generation Y' has emerged as one of the biggest issues facing employers today. Based on a library research and a review of existing literature, this paper examines the employers' perceptions of Generation-Y employees with a view to proposing ways to improving relations at the workplace for organizational cohesion and success. From the existing literature, it is documented that employers mostly consider Generation-Y employees as: spoilt/entitled, lazy, having poor work ethics, showing little respect for authority, being too self-centred and individualistic, having overinflated/unrealistic expectations, not committed to work, exhibiting little or no loyalty to their employers, lacking in social skills and a needy lot. Scholars suggest that, to improve work relations and organizational performance, employers need to make necessary adjustments to their perceptions of Generation-Y employees. These adjustments include, among others: approaching younger workers differently, providing constructive criticism that reflects confidence in them; accepting that there may be multiple ways for workers to accomplish their tasks as exhibited by Generation-Y employees; offering flexible work schedules, adjusting the belief that workers need to "put in the hours at the desk" to be effective, and developing a work culture that is pleasant and positive; realizing that asking Generation-Y employees questions can often lead to answers and solutions that are actually more efficient and effective; finding the right mix of individual and team projects that allow these workers to grow professionally; redesigning and rebuilding some of the old career ladders that were destroyed with the flattening of organizations and greatly expand telecommuting and remote working arrangements, and developing a stronger commitment to keeping employees even in bad economic times.