43% of Gen Z and millennial employees in Hong Kong and Singapore “indicate frequent thoughts of leaving their jobs, underscoring significant turnover intention,” according to a July 2024 report by Endowus and Intellect.
Lim Weixiang – Zeitgeist Photos | E+ | Getty Images
Vera Lau, 27, has worked at three different companies in as many years. She is part of a generation that appears to be challenging the ideas of corporate loyalty.
“I don’t think loyalty pays off … It’s all very transactional. You’re only valuable for as long as they see you as valuable,” Lau told CNBC Make It. “If you don’t learn and you don’t earn, it’s time to go.”
“The situation was very different in the 80s and 90s. People were just grateful to hold a job and to make a paycheck,” she said. “Our perspective on work has changed … our lives are not built around it [anymore] and your paycheck itself is not even enough to pay the bills or buy a house.”
According to a May 2024 study by WorkProud that surveyed 1,000 full-time employees, only 23% of workers aged 42 and under expressed strong interest in staying with their companies for the long term. For workers aged 30 and under, that fell to 18%.
“These findings underscore the evolving nature of workplace loyalty, particularly among younger employees,” said Rick Garlick, lead researcher of the WorkProud study.
As many as 43% of Gen Z and millennial employees in Hong Kong and Singapore “indicate frequent thoughts of leaving their jobs, underscoring significant turnover intention,” according to a July 2024 report by Endowus and Intellect which surveyed 1,000 employees.
“As the younger workforce continues to prioritize factors such as work-life balance and company culture, employers must adapt their retention strategies to meet the evolving needs and expectations of this demographic,” Garlick said.
Does loyalty pay?
According to Jerome Zapata, human resources director at Kickstart Ventures, “the short answer is no.”
Employees who job-hop are likely paid better because “merit increases can only go so far,” and candidates can negotiate from a position of strength when they are first joining a company.
“[During previous generations], if you stay loyal to an organization … they’ll take care of you for life. Right now, the retirement benefits are not livable,” Zapata said. In addition, job-hopping early in one’s career can even give candidates an “edge” he said, as they often join having gained more responsibility or perspective.
There is, however, a stigma associated with frequent job changes. While job-hopping is generally more accepted among early career candidates, for those in a senior, leadership roles, demonstrable loyalty is an important quality that companies look for.
“[Workers] should weigh up the advantages and disadvantages of hopping jobs as it could be lucrative if they want to explore new career paths or a pay rise but if they do it too frequently, they can also be considered a flight risk, and companies may be cautious in investing in them,” Sumita Tandon, Director for HR, APAC at Linkedin told CNBC Make It.
It would be wise for employees to check if they are able to get the career growth from within their existing organizations through new projects or mentors, before considering the decision to job-hop, Tandon suggested.
“I would say professionally, objectively, it’s only done me good … honestly, I earn more, I feel like I’m a better worker, I have more perspective, I can do things better, I’m more confident, the list goes on,” Lau said.
“But emotionally and socially, you deal with a lot of judgment,” she added. “There tends to be this perception that it means you’re weak or entitled … or ‘you’re just a Gen Z’. A lot of these terms are thrown around very negatively … so that’s definitely impacted me negatively.”
In a world where corporate culture is being redefined by younger generations who are rejecting loyalty, companies can retain talent by offering more to their workforces, said Zapata, from providing competitive compensation, to prioritizing employees’ wellbeing by offering more flexibility.
“The [corporate world] is winning right now, but I feel like it’s a losing battle,” said Lau. “It’s unavoidable that eventually, the younger generation, through the new way of working will definitely prevail … eventually, the man needs to retire.”
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