1 FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** GRADUATION THESIS Major Logistics and Supply Chain Management FACTORS AFFECTING WORKPLACE ENGAGEMENT OF YOUTH GENERATION IN HO CHI MINH CITY Stud[.]
FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** GRADUATION THESIS Major: Logistics and Supply Chain Management FACTORS AFFECTING WORKPLACE ENGAGEMENT OF YOUTH GENERATION IN HO CHI MINH CITY Student: Trương Quỳnh Nga Student ID: 1915535328 Class: K58 CLC6 - LSCMC1 Intake: 58 Supervisor: Ms Hà Hiền Minh Ho Chi Minh City, March 2023 TABLE OF CONTENT TABLE OF CONTENT CHAPTER INTRODUCTION 1.1 Rationale of research .5 1.2 Research background 1.3 Aims & Objectives 1.4 Scope of research .9 1.5 Research question 10 1.6 Research methodology 10 1.7 Contribution and significance of the research 10 1.8 The structure of the thesis .11 SUMMARY OF CHAPTER 12 CHAPTER LITERATURE REVIEW 13 2.1 Overview of Workplace Engagement 13 2.2 Overview about Workplace Engagement of Youth Generation 15 2.3 Some research and theories related to Workplace Engagement of Youth Generation 18 2.4 The suggested research model and hypothesis 19 2.4.1 Research Model: “ Factors affecting employee engagement in higher education institution - An empirical study in NCR” 19 SUMMARY OF CHAPTER 20 CHAPTER RESEARCH METHODOLOGY 21 3.1 Research process 21 3.2 Research Design .22 3.3 Official research methodology 24 SUMMARY OF CHAPTER 30 CHAPTER RESEARCH RESULT 31 4.1 Descriptive statistics of research sample .31 4.2 Cronbach’s Alpha Reliability Analysis 31 4.3 Exploratory Factor Analysis (EFA) .31 4.4 Pearson’s Correlation Coefficient Analysis 31 4.5 Multiple linear regression Analysis 31 4.6 Result of measurement scale analysis on factors affecting workplace engagement of youth generation in Ho Chi Minh city .31 4.7 Analysis of the impact of demographic variables .31 SUMMARY OF CHAPTER 31 CHAPTER RESEARCH CONCLUSION AND RECOMMENDATION 32 5.1 Conclusion 32 5.2 Recommendations for company in Ho Chi Minh City in terms of workplace engagement 32 5.3 Limitation and further research orientation .32 REFERENCE 33 APPENDIX 34 1.1 CHAPTER INTRODUCTION Rationale of research In recent years, the youth generation has become an integral component of the workforce in Ho Chi Minh City As such, it is essential to understand the factors affecting their workplace engagement Despite the efforts made by organizations to enhance their employees' engagement levels, the youth generation in Ho Chi Minh City still experiences low levels of engagement, which may result in high turnover rates and negative impacts on organizational performance Therefore, workplace engagement as a concept has gained a lot of attention from the corporate sectors in Vietnam In simple terms, it is a practice done by the organization to improve the level of engagement, the higher the engagement the higher the productivity Employee engagement can be defined as the cognitive, emotional, and behavioral energy an employee directs toward organizational outcomes (Shuck & Wollard, 2010) Engaged employees are more likely to be productive (Saks, 2006), remain with their employer (Harter et al., 2002; Saks, 2006; Shuck et al., 2011), and contribute to overall revenue generation (Harter et al., 2010; Xanthopoulou et al., 2009) Increasing knowledge of the multitude of factors that can impact engagement is crucial for individual and collective success In Vietnam, workplace engagement is not a significant topic for corporates in the previous period due to the characteristics at workplace of the generation This term has been mentioned more than ever since the youth generation has joined the workforce and caused a tremendous behavior shifting According to the General Statistics Office, the number of youth generation in working age (from 15 to 29 years old) in 2019 is about 20 million people By 2025, youth generation is expected to contribute to more than a third of the working-age force in Vietnam and will have a great influence on the domestic labor market Coming along with the growing of youth employees in the workforce, it leads to inevitable hindrance and complexity in merging the youth to the former generation The youth generation, who was raised with tremendous exposure to digital, is remarkably different to the earlier generation in the mindset, the characteristics and perception in work Because of the difference, when encounter with the former generation at work, youth generation has been seen to experience struggles at workplace According to a 2022 Gallup Poll, 54% of youth employees, slightly higher than any other generation, are ambivalent or not engaged at work The challenges that the youth generation faces in the workplace can be attributed to several factors Firstly, this generation has grown up with unparalleled exposure to digital technology, which has resulted in a different approach to work They are more likely to seek flexibility in work hours, use technology to communicate, and value work-life balance Secondly, their expectations of work are different from the previous generation They prioritize autonomy, creativity, and diversity in their workplace experience Finally, the youth generation tends to value purpose-driven organizations and meaningful work, which can be difficult to find in traditional workplaces From business and management viewpoint, managing and engaging a youth employee is also having some emerging problems coming from the characteristics of the generation For example, gen X and millennials shares quite common purpose and behavior in work which is easier to manage and keep the engagement, but emerging youth generation holds not only incompatible but also varied behaviors and purpose leads to multiple way of expectation for engagement Keeping engagement for youth employees are an enormous challenge for employers now because youth generation holds different expectation, the factors affecting their engagement could be idea of growth, inspiring leadership, or good benefit package It requires the constant learning and adapting process from the employers to adapt to learn the engagement to youth better With the absolute correlation between the workplace engagement and business performance, this is a noticeable sign for corporates to focus on engaging youth generation in corporate environments as they would be the main contributors in upcoming years Together with the growth of corporates focusing in Ho Chi Minh City, youth generation is pivoting to this young and full opportunities land with more than xx% youth workforce are currently based in Ho Chi Minh City Hence, the author decided to write the thesis on “FACTORS AFFECTING WORKPLACE ENGAGEMENT OF YOUTH GENERATION IN HO CHI MINH CITY” This study aims to fill this gap by examining the factors influencing workplace engagement among the youth generation in Ho Chi Minh City The study will use a qualitative approach involving interviews with the youth generation and management representatives to obtain their views and experiences on the topic The study's findings will provide insights into the factors affecting youth engagement, including factors such as leadership, organizational culture, job satisfaction, and career development opportunities It would assist business to accelerate a successful workforce that harmoniously works together benefits from a passionate, motivated, and engaged workforce from all generations This thesis intents to assist corporates in Ho Chi Minh City to understand the context of current youth workforce and inevitable adaptability to new workforce must be made as the youth generation now would be the main contributor to define and develop not only business but also Vietnam economy 1.2 Research background 1.2.1 Foreign Research Employee engagement refers to the level of commitment and involvement an employee has towards their job and their organization It is a critical factor for business success, as engaged employees are more productive, are more likely to stay with the company, and are more likely to go the extra mile to meet organizational goals However, many companies struggle with employee engagement, and it is essential to study the factors that influence it to ensure that companies can create a work environment that fosters engagement According to Gallup's State of the Global Workplace: 2022 Report, employees who are not engaged or actively disengaged can cost the world a staggering $7.8 trillion in lost productivity, which is equivalent to 11% of global GDP This alarming statistic highlights the significance of employee engagement and the need for businesses to prioritize and invest in their employees' engagement levels The global landscape of employee engagement is evolving at a rapid pace, and organizations must be prepared to adapt to new trends and expectations To effectively invigorate talent, attention, recognition, and support must be provided to employees Inclusivity in the workplace is essential, and specific employee sentiment data must be explored to ensure a consistent experience for all members of the team Talent management must be bold, human-centric, and laser-focused on the employee experience, with clear priorities and support for changes in roles and responsibilities A successful organizational culture must shift from a mindset of everything being out of control, to one where the focus is on what can be controlled, and what truly makes a difference in the organization The global trend is showing a huge shift for the way of doing workplace engagement to adapt to the full of changes world after the pandemic According to Gallup research, despite a slight increase of one percentage point from 2020, the report reveals that only 21% of the world's employees were engaged at work in 2021, and we have yet to return to the peak of 22% recorded in 2019 These figures indicate a pressing need for businesses to take proactive measures to increase employee engagement, which can lead to substantial benefits for both employees and employers, including improved job satisfaction, reduced turnover rates, and increased productivity and profitability 1.2.2 Domestic Research Based on the recent studies for Vietnam employees conducted, Ruge (2011) states that Vietnam has currently recorded a 78 percent positive employee engagement Meanwhile, on average the nations in Asia Pacific region recorded 74 percent Thus, it is proven that Vietnam achieved better percentage than the average in the Asia Pacific region because of several reasons Ruge (2011) claimed that top management’s strategy and direction, employee’s perception of the companies’ image, effective performance evaluations, empowerment via an innovative climate and involvement in problem solving and increased sophistication in company systems and practices has led Vietnam to have better employee engagement rate those other countries in Asia Pacific region Foreign research on this topic has highlighted several key factors that influence workplace engagement A study by Towers Watson found that job security, career advancement, and trust in leadership were the top three drivers of engagement among young employees Additionally, the study revealed that the level of employee engagement is significantly impacted by the quality of relationships with supervisors and colleagues Other research has shown that the alignment of individual and organizational values is another critical factor When employees feel that their goals and values are in sync with those of their organization, they tend to be more engaged and committed to their jobs Moreover, opportunities for learning and development, as well as positive work-life integration, have been reported to boost employee engagement levels In conclusion, several studies have identified various factors that impact workplace engagement among the youth generation in Ho Chi Minh City These factors include job security, career development, trust in leadership, relationships with colleagues and supervisors, value alignment, learning and development opportunities, and work-life balance Therefore, organizations that aim to enhance employee engagement among their young workforce should focus on these critical determinants to create a supportive and fulfilling work environment 1.3 Aims & Objectives The primary aim of this thesis is to investigate the factors that contribute to workplace engagement among the youth generation in Ho Chi Minh City, Vietnam The youth population in the city is growing rapidly, and its engagement at work is becoming increasingly important for organizations' success The study will focus on identifying key factors that enhance or inhibit youth engagement and how these factors interact with each other Additionally, the thesis will explore the relationship between youth engagement and the performance of organizations, highlighting the impact of engagement on the bottom line The objectives of this study are to: 1) identify the factors that affect workplace engagement among the youth generation in Ho Chi Minh City, 2) assess the impact of workplace engagement on business performance 3) examine the relationship between employee engagement and job satisfaction among young employees in Ho Chi Minh City, and 4) propose recommendations for organizations to increase engagement levels among their young workforce The findings of this study will provide insights into the key factors that contribute to employee engagement among the youth generation in Ho Chi Minh City and will be of value to organizations looking to improve their engagement strategies for young employees 1.4 Scope of research The study will begin with an extensive literature review to establish a comprehensive understanding of the concept of workplace engagement and its impact on organizational performance This will be followed by quantitative data collection methods, such as surveys and interviews, to gain insights into the factors that influence the workplace engagement of the youth generation in Ho Chi Minh City Data analysis will involve statistical techniques such as factor analysis and regression analysis to identify the key factors that impact youth engagement in the workplace The findings of this study are expected to provide insights for businesses and organizations operating in Ho Chi Minh City to develop strategies that foster a highly engaged and productive workforce 1.5 Research question The research aims to address the following questions: Firstly, what is the significant shift of youth generation’s workplace engagement in Ho Chi Minh City? Secondly, what is the difficulties in the transition between the former generation and the youth generation? Thirdly, what is the possible strategies for companies in Ho Chi Minh City to elevate the workplace engagement for their future main contributors – youth generation? 1.6 Research methodology The research adopts the following methodologies: Firstly, analysis and summarization of theories from trusted articles, reports and related studies, most typical of which include Gallup, Deloitte, McKinsey research Secondly, comparison and analysis of secondary data 1.7 Contribution and significance of the research 1.7.1 Contribution of the research The research on factors affecting workplace engagement of youth generation in Ho Chi Minh City is of great significance This study provides valuable insights into the factors that impact the motivation and commitment of young workers in the city, which is essential information for employers and policymakers in designing effective human resource management strategies The research findings are expected to contribute to improving the job satisfaction of the youth workforce, reducing employee turnover, increasing productivity, and supporting the economic development of the city Moreover, this study makes a valuable contribution to the academic field by filling 10 are identified based on the literature review and previous studies Job characteristics include the nature of the work, job autonomy, and feedback Organizational culture includes shared values, norms, and beliefs that shape the work environment Leadership style encompasses the leadership behaviors and approaches of the management team Employee well-being covers the physical, psychological, and social aspects of work-life balance The empirical study will be conducted using a questionnaire survey method among the faculty and staff members of higher education institutions in the NCR region of India The data obtained will be analyzed using Structural Equation Modeling (SEM) and multivariate regression analysis to test the hypotheses and establish the relationships between the four constructs and employee engagement The findings of the study will contribute to the understanding of employee engagement in higher education institutions and provide actionable insights for management teams to enhance employee engagement levels The study will be valuable to policymakers, human resource managers, and scholars in the field of management and organizational behavior SUMMARY OF CHAPTER 20