It is undeniable that Gen Z tends to change jobs more quickly than previous generations. However, attributing this solely to “impatience” or an “inability to handle pressure” is a one-sided view. In reality, Gen Z is entering the labor market under very different conditions: an unstable economy, rapid technological advancement, and expanding job opportunities both domestically and internationally. HR management.

For Gen Z, a job is not just a source of income; it is also a place to seek personal values, learning opportunities, and a sense of respect. When these elements are missing, leaving is seen as a reasonable choice, and sometimes a necessary one for long-term personal growth.

Recent HR surveys show that the most common reasons young employees resign are not related to starting salaries, but rather:

• A lack of a clear career development path
  
• Weak connection with direct managers
  
• Rigid, inflexible working environments
  
• Poor and non-transparent HR experiences, especially regarding salary and benefits
  

This indicates that the core issue lies in leadership and people management practices, not simply in generational characteristics.

When “Quiet Quitting” Becomes a Warning Signal for Leaders HR management.

“Quiet quitting”—doing only what is required without emotional commitment—is becoming increasingly common among young workers. This is not an act of rebellion, but a passive response when employees no longer feel heard.

For HR leaders, quiet quitting is more dangerous than open resignation. Employees are still present, but productivity declines, team morale weakens, and company culture erodes over time. If not identified and addressed early, organizations can fall into a costly cycle of continuous recruitment, training, and replacement.

In this context, leadership skills among HR professionals and middle managers play a critical role. HR is no longer just a “process keeper”; it must become the bridge between business strategy and employee experience.

What Leadership Skills Are Needed to Retain Gen Z Talent?

Retaining young employees does not come from flashy policies, but from genuine leadership capability. Several skills are becoming the new standard for HR leaders today.

First is active listening. Gen Z values two-way communication, frequent feedback, and transparency. True listening goes beyond collecting opinions—it requires visible action after feedback. This builds psychological safety, a foundational factor for long-term engagement.

Next is leading by purpose rather than control. In flexible work environments, monitoring working hours is no longer effective. Leaders need to help employees understand their goals, their role in the bigger picture, and empower them to choose how to deliver results.

Another often underestimated factor—but one with a strong impact on resignation decisions—is the HR experience related to payroll, benefits, and personal data. Late salary payments, lack of transparency in payroll calculations, or errors in insurance contributions quickly erode trust—especially for Gen Z, a generation accustomed to the precision and transparency of technology.

Retention Is Not About “Keeping People,” but About “Keeping the Experience” HR management.

In many organizations, retention strategies are still misunderstood as salary increases, bonuses, or binding commitments. In reality, these are only short-term solutions if the overall employee experience does not improve.

Employee Experience (EX) begins at very early touchpoints: onboarding, HR support in the first month, clarity of contracts, payroll processes, salary payments, performance evaluations, and career development pathways. Each interaction shapes how employees perceive the organization.

For Gen Z, an unprofessional HR system is quickly “rated poorly,” regardless of how attractive the employer branding may appear. Conversely, companies with structured, transparent, and employee-respectful HR processes gain a clear competitive advantage in retaining talent.

HR Data and Professional HR Services: A Strategic Support for Retention

As retention pressure increases, many organizations are re-evaluating the role of Payroll and HR Outsourcing—not merely as cost-saving tools, but as part of a long-term HR strategy. HR management.

When administrative tasks such as payroll, insurance, and personal income tax are standardized and handled by professional providers, internal HR teams gain time and resources to focus on strategic priorities: leadership development, company culture, and improving employee experience.

With many years of experience in workforce solutions and HR management, NIC Global serves as a strategic HR partner for numerous companies in Vietnam. Through Payroll, HR Outsourcing, and HR consulting services, NIC Global helps businesses build transparent, compliant, and Gen Z-aligned HR systems. HR management.

Standardized HR data not only reduces legal risks but also creates a foundation for analyzing turnover trends, measuring engagement, and making leadership decisions based on data rather than intuition. HR management.

The New Role of HR Leadership in the Gen Z Era

HR is no longer a “back-office” function. In the Gen Z era, HR leaders must become experience designers, advisors to frontline managers, and strategic partners to executive leadership.

This requires continuous leadership development, constant updates on labor market trends, and the willingness to move beyond traditional approaches. Retention is not a one-time effort—it is an ongoing process that demands consistency from strategy to execution.

Retention Is a Leadership Skill—Not an Instinct

In the Gen Z era, companies cannot retain employees through promises or slogans alone. People stay when they see a future, feel respected, and trust their leaders.

Effective HR leadership understands that retention is not about holding people back, but about creating an environment where employees want to stay and grow. To achieve this, organizations need professional, transparent, and people-centered HR systems. HR management.

On this journey, NIC Global is ready to support businesses with Payroll, HR Outsourcing, and HR management consulting—so leaders can focus on what matters most: building sustainable teams in an ever-changing labor market.

For contact and support:

Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: info@nicvn.com
Hotline: (+84) 981.23.43.76
Address:

• Hanoi Office: No. 3A Thi Sach, Hai Ba Trung Ward, Hanoi, Vietnam
• Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, Sai Gon Ward, Ho Chi Minh City, Vietnam

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