Securing Indonesian Gen Z Talent in the Corporate World
According to the 2020 population census, the Indonesian Central Statistics Agency reveals a notable trend: the country’s demographic landscape is largely shaped by Generation Z (those born between 1997 and 2012) and Millennials (born between 1981 and 1996).
Remarkably, Generation Z constitutes a significant 27.94 percent of the total population, making them a formidable demographic force. With their unique perspectives and digital fluency, Gen Z individuals are poised to drive substantial economic growth in Indonesia.
Therefore, understanding and effectively retaining this demographic within corporate environments is pivotal for sustainable business success.
Challenges of Integrating Gen Z into the Workforce
Despite being a significant portion of the working-age population, Gen Z’s presence in the workforce isn’t necessarily a boon for companies. In Indonesia, this generation brings a fresh set of perspectives and traits, often diverging from those of its predecessors.
Many large corporations and government bodies grapple with managing Gen Z effectively, facing issues ranging from work ethic to adherence to regulations and company culture, not to mention low retention rates.
It’s become increasingly common for Gen Z employees to leave companies after just a few months, prompting the emergence of a rule of thumb suggesting they typically last about three months in large corporate environments before moving on. This poses significant challenges for HR departments and carries substantial financial implications for businesses.
In response, some government-owned enterprises have launched initiatives aimed at boosting Gen Z productivity and retention. Among these efforts is a shift in office layout, with traditional cubicles being replaced by coworking-style spaces—a trend that has gained traction in corporate governance over the past half-decade.
However, while these changes in physical workspace may seem promising, they alone aren’t sufficient to address the deeper-rooted work style issues prevalent among Gen Z employees.
Leadership Dynamics with Gen Z
In the corporate sphere, there’s a common misconception that the managerial hurdles posed by Gen Z largely stem from specific leadership styles. This notion gained traction as brands like Apple, under the visionary leadership of the late Steve Jobs, and Meta, guided by Mark Zuckerberg, flourished with unconventional approaches.
Both leaders were known to lead meetings clad in nothing fancier than a T-shirt and shorts. Yet, not every corporate honcho is keen on reshaping their leadership tactics or attire solely to cater to the predominantly Gen Z workforce.
Besides, such strategies might not necessarily strike a chord in places like Indonesia, where a more conservative mindset toward authority still holds sway.
Recent survey findings from YouthLab, conducted online in March 2024 with over 500 young participants, underscore that while leadership matters to the younger generation, it’s not necessarily the linchpin factor in their career considerations.
