<p><em>Nowadays, </em><em>Generation Y is the generation that </em><em>dominates </em><em>the workforce. </em><em>This </em><em>can also be interpreted as a </em><em>shifting </em><em>of a group of employees. In responding to the employee's demographic changes, the organization is required to be able to adjust its managerial strategy to ensure that employees can remain in the organization.</em><em> </em><em>The purpose of this study </em><em>is</em><em> to analyze </em><em>the effect of generation Y’s belief of</em><em> work ethics on the </em><em>intention </em><em>to stay with organizational commitment as a mediator. The sample in this study consist of 130 contract employees working in the 3 star hotel industry in Yogyakarta.</em><em> </em><em>The results of this study show </em><em>that </em><em>work ethics that </em><em>have the </em><em>positive significance of the </em><em>intention </em><em>to stay, as well as organizational commitment as a mediating variable between work ethics with the </em><em>intention </em><em>to stay. </em><em>This research </em><em>is expected to provide information and knowledge about the current generation Y which can be input in the design of human resource strategies.</em></p><p><strong> </strong></p>