This study investigated to what extend psychological terrorization, i.e. perceptions of mobbing and sexual harassment, are widespread among high-end Istanbul hotel employees and how these affect the employees’ workplace creativity. The primary data was collected with a questionnaire and the total number of respondents was 203. When the employees perceived psychological terrorization -due to experienced or witnessed mobbing or sexual harassment-, it indeed did hamper their self-assessed workplace creativity. However, the analyses also showed that there are marked differences between the Generation Xer and Millennial groups of employees. The Millennials’ creativity is influenced much more strongly by such perceptions. Based on these results, human resource recommendations for management of both generational groups are provided.