While workers of this age group feel their bosses offer them experience, wisdom and a mentoring opportunity, their feelings are not reciprocated.
Around 51 per cent managers said Gen Y workers have unrealistic compensation expectations and 47 per cent believe younger workers have a poor work ethic.
Forty-six per cent managers also said Gen Y workers are "easily distracted".
According to the research, social media also muddies the relationship between bosses and their younger employees, 'BusinessNewsDaily' reported.
Only 14 per cent of managers said they are comfortable connecting with their employees on Facebook, while 24 per cent said they are comfortable connecting on LinkedIn.
Workers, on the other hand, are more comfortable about connecting with bosses on social media platforms. Gen Y workers are also more comfortable about making introductions through social media than bosses.
The research was based on the responses of 1,000 managers and 1,000 Generation Y workers from US companies.
The study also found that bosses are supportive of the entrepreneurial efforts of younger workers.
Nearly 60 per cent of bosses said they are extremely supportive of the entrepreneurial efforts of Gen Y workers and 73 per cent of bosses are supportive of Gen Y workers moving around within an organisation.
However, fewer than 50 per cent of Gen Y workers said they are interested in starting their own business or moving within an organisation.
"Gen Y's are crucial to the development and growth of our economy, yet managers have a negative impression of them and it's creating workplace drama," said Dan Schawbel, founder of Millennial Branding, which conducted the research along with American Express.
"Managers should be setting proper expectations, giving them career support and help them develop the skills they will need today and in the future," Schawbel said.