A recent 2024 survey by ManpowerGroup found that about 78% of Hong Kong-based companies were struggling to locate talent as they head into next year. This apparent shortage of talent faced by employers in Hong Kong can be partly attributed to shifting attitudes of the incumbent workforce.
A recent survey conducted by the Employees Retraining Board in Hong Kong this year has identified a lack of incentive to work among youths, revealing that over a third of the younger respondents who were not working or studying had no plans to find a job. Lack of financial urgency and being unable to face work pressures were cited as influencing factors for not wanting to work. The prospect of competitive remuneration, flexible working hours and remote work options are only incentivising some to take up work.
A poll of 367 people aged 18 to 40, conducted by the Hong Kong Federation of Public Housing Estates and other youth groups last month revealed that the phenomenon of ‘lying flat’ (a growing trend amongst Chinese youths for doing the bare minimum when they are employed or choosing not to work at all) is a growing lifestyle choice for many which may in part be a result of the unaffordable housing in Hong Kong. Over 30 percent of respondents said that they would lie flat, declining promotions and salary increases in order to stay within the eligibility criteria for public housing.
All of this comes at a time when people have been re-evaluating what “work” means. Employee expectations are growing – rising most significantly among employees under the age of 40, suggesting younger employees are driving the most significant change. As a result, employers are having to adapt by adjusting recruitment, retention and development strategies to respond to the different priorities and pressures of a multigenerational workforce.
The next generations
The impact of millennials, (those born between the early 1980s and the late 1990s), and Gen Zs, (those born between the late 1990s and early 2000s) in the world of work have been significant, and they are expected to make up over 70% of the global workforce by 2025.
When Gen Alpha (currently age 15) join the workforce by 2030 it will be increasingly common to find five generations working together in a single place of work. Gen Alpha are set to disrupt culture, the economy, and workplaces. Modern businesses are expected to act responsibly and develop long-term sustainable strategies, while people increasingly see the values of their employer as an extension of their own values and brand.
Studies show that the majority of millennials and Gen Zs value purpose-driven work. They want to work for an organisation that has a purpose beyond profit. They are drawn to organisations that truly foster and promote workplace diversity and equity. With raising awareness of mental health, these generations value a workplace that prioritises the well-being of its employees. Work life balance and flexibility remain paramount as these generations seek more control over where and when they work. The unprecedented collective experience of the last few years has prompted many to rethink their priorities and question the place work has in their lives. Developing a sense of (individual and organisational) purpose and deriving meaning from work have emerged alongside flexibility and belonging as having a significant impact on an individual’s sense of what matters in their life. In recent years, how an organisation is valued is increasingly becoming measured by what position it takes on certain matters – how it is using “soft power” to address societal concerns. Organisations that get this right can build higher resilience and well-being, higher retention and engagement, and boost innovation and brand value, all of which impact positively on the success of the company.
Tips for employers on managing a multi-generational workforce
A growing focus on ethical behaviours, people’s individual needs and “good work” mean the traditional employment relationship based on job security and financial stability in return for loyalty is increasingly outdated. People want more from their employer than the industrial age “transactional idea” of giving work in return for job security, fair pay and benefits.
With the shift in priorities, offering a competitive salary package and statutory minimum benefits are no longer enough to attract and retain top talent. The fight for talent is driving many employers to find new ways to appeal to the younger generations. Many forward-thinking employers are now offering all sorts of perks and benefits to demonstrate their commitment to their employees’ overall well-being and work-life balance.
For example, some employers in Hong Kong are now offering more generous adoption and parental leave benefits, including equal fully paid parental leave of up to six months, regardless of gender. We have seen some more progressive employers offer financial support for employees experiencing infertility issues such as for IVF treatment. Health and wellness subsidies, such as fixed yearly allowances to use towards gym memberships, and access to free counselling services are also becoming increasingly common. A four-day working week has arrived in Hong Kong but only for a minority of employees. More employers are offering unlimited annual leave to their employees with set parameters. Flexi-work arrangements are more common with international employers offering employees staggered hours and the possibility to work some days remotely.
In Hong Kong, a city which is ranked as having one of the least affordable housing markets in the world, employers can assist and incentivise employees by offering housing related benefits including, for example, financial assistance, rental reimbursement schemes, housing allowances and / or subsidised accommodation.
Employers who are considering offering new or enhanced benefits to attract talent need to carefully consider how they will implement and administer the enhanced benefits and policies. Employers should decide if the enhanced benefits will be contractual or discretionary, how they will be formalised in the employment contract, the employee handbook or other documentation. In any event, employers should clearly communicate to their employees the eligibility criteria and the specifics of these enhanced benefits and policies to avoid any disputes.
Employers should also train HR, line managers and leadership on age inclusion and multi-generational workforces and offer upskilling opportunities across the workforce.
Final remarks
Different generations are often ascribed divergent values and characteristics influenced by the circumstances and key events of their generation. An employer which can respond to the evolving needs of these generations and communicate effectively will win the talent war. In doing so, employers need to rethink work and design workplaces that appeal to employees at different life stages in order to take advantage of the benefits of a multi-generational workforce, such as increased resilience and innovation, retention and productivity, and diversity of skills and perspectives.
For more on the winning the war on talent and managing multigenerational workforces, visit our Future of Work Hub or contact a member of our team.