The often-misunderstood youth apparently just want money and growth.
A new local survey, titled “Laws of Attraction” (LOA) determined that the top “drivers of attraction” among the younger generation of Filipino workers and job candidates are salary/compensation and career/development, along with work-life balance.
“For companies looking to attract and retain young talent, competitive compensation packages, inclusive career development opportunities and work-life balance are crucial,” said Philip Gioca, country manager of JobStreet Philippines, the online job board that is behind the LOA survey. “This younger generation of workers also find great purpose in values-driven companies that take corporate social responsibility seriously.”
Conducted by research agency Kantar TNS, the LOA is the biggest of its kind in the Philippines with 18,378 respondents aged 18 to 65 years old from the top 25 industries, including business-process outsourcing, retail and health care. The respondents were surveyed for less than 20 minutes each between January 18 and March 4, 2019.
The study identified the characteristics of the different generations in the work force. The Baby Boomers (1945 to 1964), according to the LOA, value hard work above all, while the Gen X (1965 to 1979) hold loyalty in high regard. As for the focus of the study, the youth, the Gen Y or millennials (1980 to 1994) prioritize work-life balance, while the Gen Z (1995+) treasure innovation and change.
Key drivers for an important sector
The importance of the study’s focus on young professionals is underscored by the latest data from the Philippine Statistics Authority (PSA), which identified the youth as the largest working group in the country that is only bound to grow bigger in the coming years.
Figures show that 27.5 percent of employed persons are 25 to 34 years old, making millennials the largest working group in the country. Meanwhile, Gen Zers currently make up 14.7 percent of the work force, a figure expected to rise to 35 percent by 2025.
The LOA stated that the two important age groups had different No. 1 driver of attraction. While millennials ranked salary/compensation as their top priority—with focus on equity in the business/employee stock option and guaranteed 14-month pay—Gen Zers value career and development opportunities the most, with emphasis on education and the chance for overseas employment and training.
Despite Gen Y’s chase of high salary and Gen Z’s clamor for career advancement, both agree on work-life balance as the third key driver of attraction.
Gen Y and Gen Z also differ in their perception of three other vital drivers of attraction. For millennials, job security is decidedly important; not so for Gen Z talents, who generally prefer part-time work for an hourly rate, but have a higher regard for management/leadership style. Nevertheless, both age groups want employers who are professional, respectful and collaborative/supportive.
The young generation also want employers who support a cause. The LOA study revealed that corporate social responsibility is more relevant to Gen Y and Gen Z respondents than to other generations.
Millennials and Gen Zers also share the belief that employers must value and contribute to its people, as well as help nurture and protect the environment. More Gen Zers, however, clearly wish to work for organizations that make a positive impact on society and the environment compared to their Gen Y counterparts (70 percent vs 60 percent).
Government and accounting
One of biggest findings of the study is the industry preference of Filipino Gen Zers. As compared to other markets, local members of Gen Z prefer jobs in accounting and government industries due to stability, competitive salary and benefits and work-life balance.
That said, more than 90 percent of Generations Y and Z believe that mandatory government benefits and health/life-insurance plans should be the top 2 inclusions in any compensation package. While double pay during public holidays is the third most essential factor for both of them, a competitive base income appears to be of greater importance to millennials (84 percent) than to Gen Z professionals (77 percent).
In comparison with Gen Y, more Gen Zers view guaranteed 14th-month pay (67 percent vs 63 percent) as a must-have. Meanwhile, both groups consider high night differential (Gen Z 61 percent, Gen Y 59 percent) and bonuses or profit-sharing schemes (Gen Z 60 percent, Gen Y 58 percent) as essential offerings of a company.
Moreover, almost 60 percent of Gens Y and Z strongly approve of allowances in the form of meals or rice and for purposes of travel, shift work, and entertainment, among others. Between the two generations, the LOA determined Gen Z as the one expected to ask for a sign-on bonus (53 percent vs 44 percent).
Emphasis on growth
A notable 78 percent of the young work force say that promotion opportunities are definitely a “must” when evaluating any company or job proposal. It would be best for employers to assure them of clear growth and succession plans, self-development programs, and on-the-job skills development—all compelling factors for 58 percent of millennials and 71 percent of Gen Zers.
Mentoring programs, meanwhile, are deemed very significant by more millennials than Gen Zers (63 percent vs 55 percent).
When it comes to work-life balance, 83 percent of these age groups say that fair compensation for overtime is their most pressing consideration. Both of them express preference for companies that allow employees to cash out unused annual leaves, adhere to public/general holidays, and implement a five-day work week.
As opposed to millennials, Gen Zers are more inclined to look for daytime working hours (52 percent vs 48 percent), but Gen Y candidates would more likely demand for flexible working hours (51 percent vs 45 percent). Millennials also appears to favor high frequency of business travel more than Gen Y or any of the other generations.
‘Growth-centric, balance-oriented and values-driven’
Gen Y and Gen Z have their fair share of differences. While millennials value a more competitive base salary, Gen Zers are more inclined to jobs with more incentives. Millennials value job security, whereas Gen Zers place more importance on quality of leadership. Gen Z is also more experiential, looking for more growth and travel opportunities compared to their Gen Y counterparts.
Despite the contrast, the future work force looks to be growth-centric, balance-oriented and values-driven. Both millennials and Gen Zers are driven by career growth, with Gen Y valuing more mentorship opportunities and Gen Z looking for capacity- and skill-building programs.
Both generations also expect their employers to be professional and supportive, and their companies to contribute to society and the environment in meaningful ways.
According to Paul Tuazon, jobstreet.com sales manager, companies don’t necessarily have to bend and address an absent driver, but simply focus on those they already have.
“What we’re saying with the LOA survey is that every generation has a different set of drivers of attraction,” Tuazon said. “Every company is structured differently, and what we present to them are the employees’ wants.”
More information on the Laws of Attraction Survey is available on jobstreet.com.ph.