Redefining company culture through the influence of the younger workforce
In the rapidly evolving world of work, companies in Vietnam are facing a significant shift as the next generation of employees, Generation Z, enters the workforce. This generation, born between the mid-1990s and the early 2010s, brings unique cultural expectations that companies can no longer ignore.
Modernising Communication Channels
One of the key areas for change is communication. Companies should modernise their communication systems, replacing formal memos with instant, two-way digital platforms like Slack and Microsoft Teams. This shift towards real-time, interactive communication aligns with Gen Z's preference for immediate feedback and collaboration.
Embracing Gen Z's Priorities
Embracing Gen Z's priorities is not just about hiring but retaining and empowering the next generation. A regional tech company in Vietnam saw a 32% drop in first-year turnover after redesigning their roles to cater to Gen Z's preferences.
Strategies for Attracting and Retaining Gen Z
Effective strategies to attract and retain Gen Z employees in Vietnam involve several approaches:
- Hybrid Work Arrangements: Companies should implement hybrid work arrangements to provide flexibility and better work-life balance, which Gen Z in Vietnam prefers.
- Focus on Mental Health and Wellbeing: Fostering a workplace culture emphasising mental health and wellbeing supports is crucial, recognising Gen Z’s focus on such priorities and their openness to new work lifestyle models.
- Clear Career Pathing and Upskilling Initiatives: Developing clear internal career pathing and upskilling/reskilling initiatives enhances employee loyalty and job satisfaction, directly addressing Gen Z’s desire for growth and development opportunities.
- Leveraging Technology: Utilising technology, including AI tools, to personalise employee experiences, understand preferences, and improve engagement and retention strategies tailored to Gen Z’s expectations is also essential.
- Regular Surveys: Conducting frequent, brief surveys to keep pulse on evolving employee expectations and tailor retention measures accordingly is another effective approach.
- Holistic Wellbeing Programs and Meaningful Development Opportunities: Integrating flexible work models, holistic wellbeing programs, and meaningful development opportunities into core retention strategies is critical to meeting Gen Z’s nuanced demands beyond salary alone.
The 2025 Vietnamese Employment Law
The 2025 Vietnamese Employment Law encourages firms to support vocational skill development and collaborate with national agencies, offering tax incentives for training that can be leveraged to meet Gen Z's upskilling interests and enhance retention.
Feedback and Autonomy
Over 90% of Gen Z seek weekly feedback from managers, and 86% prefer autonomy to explore independently before seeking help. Serene Koh, the executive director of Talentvis, advises embedding development from day one, with learning journeys linked to real roles using tools like Talentvis Academy to track growth, improving retention metrics by up to 25%. Companies should redesign roles for autonomy, providing clear objectives with the flexibility to execute tasks.
Aligning with Gen Z's Values
The opportunity to lead in the future of work is now, as the rise of Gen Z is already reshaping it. Those who listen and adapt today will lead tomorrow. 85% of Vietnamese Gen Z expect employers to demonstrate sustainability and corporate social responsibility. Companies that fail to align risk losing talent or never attracting it in the first place.
The Shift in Workplace Culture
The shift in workplace culture due to Gen Z's preferences is transforming companies across Vietnam, making rigid hierarchies and annual performance reviews less effective. Gen Z values office designs that support focus and collaboration, with demand for wellness zones, flexible seating, and cosy breakout areas.
The Average Job Tenure
The average job tenure for Gen Z in Vietnam is 2.2 years, compared to 3.2 years for millennials and 4.3 years for Gen X. Companies often cite "lack of purpose" or "poor leadership" as reasons for leaving.
Employer Branding
Companies should align their brands with values, as employer branding is foundational, and resonating with Gen Z can double a company's Gen Z applicant pool in three months.
A Clear Choice
Vietnamese companies face a clear choice: stick with outdated models and risk losing young talent, or evolve to respond to Gen Z's demands for more transparency, empathy, and continuous growth.
- To cater to Gen Z's focus on continuous learning and growth, companies in Vietnam might incorporate education-and-self-development opportunities, such as personalized development journeys and support for vocational skill development, as part of their retention strategies.
- In the rapidly evolving business environment, embracing Gen Z's lifestyle preferences, like a focus on mental health and wellbeing, flexible work arrangements, and a commitment to corporate social responsibility, can potentially lead to better financial outcomes through improved employee retention and attraction.
