Understanding Gen Z Talent in Southeast Asia
Introduction
As Southeast Asia's labor market continues to evolve, Generation Z (born between 1997-2012) is increasingly occupying a substantial portion of the workforce. By 2025, Gen Z will represent about 27% of the workforce in the region, with some countries, such as Vietnam, the Philippines, and Indonesia, seeing this number rise to 30-35%. This generation, which has grown up in the digital era and experienced the impact of the COVID-19 pandemic, brings a unique set of expectations and values to the workplace. For progressive companies, especially those with distributed teams, understanding and adapting to these needs is essential to attracting and retaining top talent.
Different Expectations of Gen Z in Southeast Asia
Work-Life Balance and Flexible Working Models
Gen Z places a high value on work-life balance, with flexibility being one of the top factors in job selection. According to LinkedIn Talent Insights in 2023, 68% of Gen Z candidates in Southeast Asia consider flexible working models as crucial when job hunting—significantly higher than previous generations. For these candidates, flexibility extends beyond just remote work; it also includes autonomy over working hours and hybrid working models that allow them to blend online and offline work. This presents both opportunities and challenges for companies looking to build a distributed team in Southeast Asia.
Clear Skills Development and Career Opportunities
Gen Z prioritizes continuous learning and development. A report from Dell Technologies in 2023 showed that 74% of Gen Z employees in Southeast Asia value opportunities for growth and skill development when choosing an employer. As many Gen Z workers change jobs frequently—averaging only 1.8 years in each role—companies that provide clear pathways for career progression and the chance to develop transferable and digital skills will attract and retain these workers.
Compatible Corporate Purpose and Values
Gen Z is driven by values and wants to work for companies whose missions align with their personal beliefs. Research from Deloitte in 2023 showed that 62% of Gen Z candidates would refuse to work for companies lacking strong environmental and social policies. In Southeast Asia, particularly in countries like Vietnam and Indonesia, Gen Z is more likely to seek out businesses that contribute positively to society and prioritize sustainability.
Recognition and Regular Feedback
Having grown up with instant feedback on social media, Gen Z expects frequent and constructive feedback at work. According to Microsoft’s 2023 Work Trend Index, 71% of Gen Z employees in Southeast Asia want feedback at least every two weeks, compared to only 56% of Millennials. These employees appreciate specific, actionable feedback that helps them grow professionally, making it essential for companies to develop feedback-rich environments.
Advanced Technology and Efficient Work Processes
Digital natives, Gen Z has high expectations for the technology they use at work. They prefer companies that are digitally transformed and operate with advanced tools. A 2023 IDC report found that 68% of Gen Z candidates consider a company’s technological capabilities when deciding whether to apply for a job, and 57% have rejected offers from companies perceived as technologically outdated.
Conclusion
Gen Z is reshaping the workforce across Southeast Asia with distinct expectations for flexibility, development, purpose, and technology. Partnering with an EOR partner can help companies create an environment that meets these expectations. By supporting businesses with flexible employment solutions, ensuring compliance across diverse markets, and integrating advanced technologies, EORs empower progressive companies to build distributed teams that attract and retain Gen Z talent. This approach not only addresses immediate HR challenges but also positions businesses for long-term success in an increasingly competitive labor market.