Moral hazard? There is a variance in any group. So maybe GenY is skewed a little bit one way or the other. But like every group it has its work-a-holics, its risk-takers, and its spoiled brats.
The smart employer will cherry pick from the group the people who will be the best workers. The workers who are left, who are not the best workers, will be left with the employers who are not the smartest employees.
We see that being played out right now. There is currently a huge number of job openings in most all fields, despite the media fixation on unemployment. The good employees are playing musical chairs, leaving their current job and thus creating an open chair, in order to fill an open chair in a better position in the game of musical chairs. Those who really want to work see the many chairs that open during the game of musical chairs and move quickly for the open chair they have had their eye on.
Those less motivated to work see all the chairs that are not empty and use that as an excuse to not make a serious attempt to grab one of the open chairs.
This game of musical chairs will treat GenY no different than other groups. And it should be noted that this applies not just to generational groups, but to racial/ethnic and philosophical groups.
While the anti (illegal) immigrant voices complain about the illegals taking all the good jobs the game of musical chairs continues with many chairs opening and being filled by those who really want to work and by those who don't spend their time blaming others to avoid persoanl responsibility for their situation.
If so then I see this as a good sign. The older mentality of one-company employment with a guaranteed pension was an illusion/myth worth losing.
The bottom line is that you can't reform a disfunctional organization from within. What you can do is leave and that's easier to do with such as defined-contribution pension plans.