Research on factors affecting the engagement of Gen Z employees in -

recommendations for strengthening human resources as a competitive

advantage for Vietnamese enterprises.
Abstract:
The study was carried out to identify affecting factors on engagement of gen
Z employees with their Vietnamese enterprises. The data was collected from 400
gen Z employees, which was cleaned, encoded and inserted to SPSS 20 software.
Hypotheses from H1 to H5 were applied to test Cronbach’s Alpha, EFA, and
continued with Pearson analysis and tested the linear regression model using the
OLS method on SPSS 20 software. The research findings revealed the study’s
clarification of affecting factors on the engagement of employees belonging to
gen Z. The survey results proved that training and development opportunities has
the most significant influence, following by the influence from direct manager
and enterprise culture. According to the research results, the authors suggested
policy recommendations and management implications for businesses to enhance
the utilisation of Gen Z human resources.

1. Introduction
Gen Z is the term used to characterize the youth of the Z generation, born
between 1995 and 2012. It is estimated that there are approximately 2.6 billion
members of Generation Z in the world, making up 13% of the entire population.
In Vietnam, Gen Z represents nearly 25% of the population, which is
approximately 15 million individuals. The Generation Z thinks that
competitiveness is crucial to expressing themselves and progressing in life. They
are familiar with working in a competitive environment. They want to show off
their competencies to compete with others. Since being little children, they have
always strived to achieve high scores, which would satisfy themselves.
According to the findings of Ncube and Steven (2012), it could be inferred
that employee engagement in an enterprise was crucial for fostering its
competitive advantage. Therefore, it is critical that the enterprise makes use of the
different resources provided by its employees and improves their engagement
with the enterprises. Currently, in the context of a highly competitive market,
human resources have always been one of the primary challenges. For this reason,
enterprises should continue to develop their policies on human resource
development and seek different methods of retaining human resources in order to
attract more talents. As a result, managers place a high priority on the salary and
other remuneration policies of their companies.
 Generation Z always seeks for diverse environments with a variety of human
resources in order to acquire cultural understanding, develop skills, and gain
knowledge. They also facilitate the promotion of balanced collaboration in
diverse human resources. Therefore, the enterprise should accept that reality and
be open in recruitment policy to make working environment become more
interesting and attractive. All managers identify that they have to pay high price
when the key employees and associates leave. When this happens, customers
would also leave the enterprise or there might be a wave of leaving among other
employees. It can be seen that in addition to employ high-quality human resource
to develop their business, enterprises should know how to keep competent gen Z
to avoid brain drain. This is a concerning issue of each enterprise in the current
context.
2. Theoretical basis and research model
2.1. Theoretical basis
As Ulrich (2007) argued employee contribution became crucial to business
success. Due to the fact that when companies try to increase production without
having to increase employees, there is no choice but they are forced to find ways
that can engage employees not only through physical engagement in the
workplace but also on a mental and spiritual level. A study published by Lui and
colleagues (2017) about social exchange theory suggested that an enterprise
should provide employees with resources to pursue and develop their careers,
including benefits, job developments, and training. Consequently, they will be
motivated and aware to serve the enterprise with dedication.
Research by Ncube & Steven (2012) concluded that organizational
competitiveness was determined by employee engagement with the enterprise. It
is essential for enterprises to take advantage of employee resources, develop
human resources, and enhance employee engagement within the enterprise. In
these harsh market conditions nowadays, the competition for human resources is
always an extremely challenging issue. Thus, in order to attract talented
individuals, enterprises constantly complete human resource development
policies and seek methods of retaining human resources, whereby salaries and
other forms of remuneration are always given special consideration by
management.
Employee engagement is defined as a desire to remain a member of the
enterprise. This is the act of demonstrating the level of involvement of an
employee in the enterprise. It is referred to as a psychological link between an
individual and their enterprise, which makes them less likely to leave the
enterprise without any hesitation. When employees are committed to their
enterprise, they feel included and understand the goal of enterprises. In the view
of Dordevic (2004), the importance of engagement had an influence on employee
behaviors, such as working performance, absence and other organizational
behaviors.
2.2. Research hypotheses
2.2.1. Job attractiveness
Attractiveness of the job is determined by the attitude which the employee
receives from all aspects of the job and policies of the enterprise. The Gen Z
generation is a group of employees who have great ambitions, resulting in the
high needs for personal growth. So, it would be important for Gen Z human
resource managers to communicate the purposes of their work and to inspire them
with a long-term vision which would motivate them to achieve their goals (Hong
Duyen, 2022). A positive correlation existed between job characteristics and
employees' work engagement that would increase their engagement to the
enterprise(Saks, 2006). A job that was given autonomy, requires the application
of a wide range of challenging skills, was an encouragement for their job
engagement (Kahn, 1990).
=>Hypothesis H1: Job attractiveness has positive influenceon gen Z’s job
engagement with an enterprise
2.2.2. Influence from direct manager
Direct managers had an influence on employee attitudes and behaviors
(Heweit, 2015). Employees would experience a stronger sense of connection to
their work when their leader possesses knowledge, displays friendliness, praises
employee’s achievements, actively listens to their opinions, and demonstrates a
care for their interests. A positive relationship between a direct manager and an
employee would foster feeling of safety and trust, leading to employee
engagement and increase efforts towards organizational goals (Kahn, 1990; Saks,
2006).
The level of employee engagement can be enhanced when supervisors
provide inspiration and demonstrate genuine concern for their employees'
interests. Nevertheless, in situations when employees are unable to offer the
requisite guidance or fail to do so, they may experience feelings of
frustration. Even, employees may perceive an excessive level of control exerted
by their manager sometimes, which results in a subsequent decline in their level
of engagement. Therefore, the authors expected that:
=> Hypothesis H2: Influence from direct managers has positive influence
on employee engagement
2.2.3. Training and development opportunities
 Opportunities for learning and development is to perform a specific task.
Giving employees goals and abilities for their work is done through the process of
training and development. Training and development contributed to employee
engagement in the enterprise (Bartlett 200, Ncube & Steven 2012). Employee
engagement could be enhanced when enterprises offered employees opportunities
for skill development, professional knowledge acquisition, and personal growth
(Sundarary, 2011).
Promotion means changes upward to a higher position or occupation in the
enterprise. Martensen and Grondoldt (2006) stated that job promotion held
significant importance for employees as it served as a means of self-affirmation in
the workplace. Promotion relates to the demand for self-expression. This would
be a factor creating job motivation and increasing employee engagement
(Herzberg, 1959). So, authors expected that:
=> Hypothesis H3: Training and development opportunities have positive
influence on Gen Z employee engagement.
2.2.4. Income
Income would comprise base wage, allowances, commission, and additional
benefits (Robbins & Judge, 2013). The association between the appraisal and
recognition of employees' achievements and their happiness was noted to
establish the basis for their involvement with the firm (Danish & Usman, 2010).
Employee engagement to an enterprise can potentially be influenced by the
benefits they receive. Employee engagement should prioritize voluntary and
inspired commitment to enhance work performance, which should be initiated by
the enterprise (Robinson & Hayday, 2004). Encouraging employees to gain the
enterprise’s target should also be accompanied with giving appraisal based on
their work performance (Sundaray, 2011). According to Robbins and Judge
(2013), in the event that employees perceived inequality in their treatment, it was
likely that they would opt to discontinue their employment. Employees from
Generation Z who are part of the human resources sector tend to prioritize
practicality. Therefore, it would be crucial for enterprises to have a compensation
strategy that was both realistic and competitive (Hong Duyen, 2022). So, the
authors expected that:
=> Hypothesis H4: Income of employees has a positive influence on
employee engagement.
2.2.5. Enterprise culture
Many researchers conducted the investigation on the relationship between
enterprise culture and employee engagement (Boon, Safa& Arumugam, 2006).
Research by Khan et al (2011) found that enterprises with a work culture had a
more engaged workforce. According to Meyer and Allen (1991), enterprise
culture was seen as a foundation for organizational attachment. Enterprise culture
would have a direct and indirect influence on organizational engagement, which
was shaped by the values and beliefs reflected in organizational policies
(Manetje& Martins, 2009). This influence occured when members in the
enterprise figure out the alignment between their personal values and beliefs and
those of the enterprise (Meyer & Allen, 1997). The suitability between enterprise
culture and employee values would strengthen employee loyalty to the enterprise
(Meijen, 2007; Yuen and et al, 2014). The theoretical connection between
enterprise culture and organizational engagement was considered as a result of
enterprise culture (Manetje & Martins, 2009).
=> Hypothesis H5: Enterprise culture has a positive influence on Gen Z
employee engagement.
Based on the hypotheses, the author proposes a research model:

Independent factors Dependent factor

H1 (+)
Job attractiveness
H2 (+) H2 (+)
Influence from direct manager
GenZ employees’
H3 (+)
Income engagement

H4 (+)
Trainning and development oportunities

H5 (+)
Enterprise culture

3. Research method
This study employed the Likert 5 measurement scale, ranging from 1 –
"extremely disagree" to 5 – "extremely agree" (Weijters et al., 2010), as well as
the SEM model, in order to clarify the relationship between variables that were
compatible with the theoretical model (Hair et al., 2010). The statistical model
was analyzed using SPSS 20. The use of measurement scale and model variables
resulted from a review of prior research, as shown in Table 1.
 Table 1. Variables and measurement scales

No Abbreviation Description Source

Job attractiveness (HDCV)

1 HDCV1 My current job is interesting Boyce et. al,

(2003);
2 HDCV2 My current job does not put me under great Bruce
pressure (2008)
3 HDCV3 My current job helps showing my personal
development demand

4 HDCV4 My current job shows my activeness

5 HDCV5 My current job helps me balance work, life and

personal happiness

Influence from direct managers (TDNQT)

6 TDNQT1 Always taking care and support employees Heweit

(2015);
7 TDNQT2 Respecting competence and talents of Saks (2006)
employees Snowden &
MacArthur
8 TDNQT3 Having equal treatment within employees
(2014)
9 TDNQT4 Having good specialized knowledge and
leadership skills

10 TDNQT5 Inspirational leadership

11 TDNQT6 Leadership shows a long-term vision for their

personal development

Income of employees (TNHAP)

12 TNHAP1 Salary is compatible with working performance Heweit

(2015);
13 TNHAP2 Salary is equal among employees Robinson
et. al,
14 TNHAP3 Salary is fully paid as scheduled
(2004);
15 TNHAP4 I am satisfied with current income
 Training and development opportunities
(CHHT)

16 CHHT1 Being trained for job purpose and job Robinson

development et. al,
(2004);
17 CHHT2 Gaining practical knowledge for more effective
working performance

18 CHHT3 Creating development opportunities for

competent employees

19 CHHT4 Having equal and transparent policies on

promotion

Enterprise Culture (VHDN)

20 VHDN1 Striving to enhance your skills voluntarily to Robinson

make greater contribution et. al,
(2004);
21 VHDN2 Being proud to work at the enterprise Saks(2006

22 VHDN3 Being loyal while employed at the enterprise

23 VHDN4 Spreading enterprise culture

Job engagement (GKCV)

24 GKCV1 Being voluntary to make efforts to improve Robinson

skills for greater devotion et. al,
(2004);
2 GKCV2 Being proud of working at the enterprise Saks (2006)
5

2 GKCV3 Being loyal to the enterprise

6

2 GKCV4 Expanding culture of the enterprise

7
 According to Yamane Taro (1967), sample size determination in situations
when the overall sample size was unknown was conducted using the following
formula.

In which: n would be the sample size to be determined, Z was the value of

the Z distribution table based on the selected confidence (Z= 1.96 when the
confidence level is 95%), p was the estimated rate sample size n successes (select
p=0.5 so that p(1-p) was the maximum, e was the permissible error (e=±0.05).
Then: n=384.16. So, it was necessary to select at least 384 observations to
undertake the research.
To carry out the quantitative method, the authors conducted a convenient
and random survey of employees from various enterprises. The total number of
questionnaires released was 420 and the number of returned valid responses was
400. Because the number of valid responses was bigger than 384, it could be
concluded that the research sample was accepted.
In order to test research model, the authors used the approach to variables
of HDCV, TDNQT, TNHAP, CHHT, VHDN to measure variable GKCV. Based
on 400 valid responses, the authors conducted coding. After being encoded, the
data were entered into SPSS 20 software. Hypotheses from H1 to H5 were tested
for Cronbach's Alpha coefficient, EFA and continued with Pearson analysis and
tested the linear regression model using the OLS method on SPSS 20 software.
To process the data, the authors performed the following steps:
Firstly, Cronbach’s Alpha reliability test
Cronbach’s Alpha is the statistical test of validity (possibility to explain a
research concept) showing items in the measurement scale is relevant to each
other. In other words, Cronbach’s Alpha reveals whether the measurements are
connected with one another or not. Many researchers agreed that when
Cronbach’s Alpha is equal from 0,8 to approximately 1,0, the measurement scale
is good; from 0,7 to nearly 0,8, the scale is usable. Other researchers proposed
that Cronbach’s Alpha from 0,6 and above could be used in the case of a new
researched concept or a concept new to respondents (Hoàng Trọng and Chu
Nguyễn Mộng Ngọc, 2008). Therefore, in this current study, the authors applied
Cronbach’s Alpha from 0,6 and above. If a value of Cronbach’s Alpha was too
big (α > 0,95), it would mean that many variables in the scale were the same,
which measured a specific content of the researched concept (Nguyễn Đình Thọ,
2011)
Secondly, exploratory factor analysis EFA
 EFA should be responsible for exploring the structure of measurement
scale for factors of the research model. EFA can be used in the following cases:
- Identifying aspects or factors that can explain correlations in a set of
variables.
- Identifying a set of new variables relatively correlated with each other to
replace the initial set of correlated variables in order to carry out the next multi-
variables analysis.
- Identifying a set of a few prominent variables extracted from a set of
multi-variables to carry out the next multi-variables analysis.
There are some points taken into consideration in EFA:
- Value of KMO is big (0.5 to 1), which is the condition to analyze suitable
factor. Barlett test has significance when (Sig < 0.05).
- Eigenvalue > 1 and total variance explained > 50%.
- Factor loading < 0.5 will be removed.
After the EFA has been strictly followed, new factors will be tested to
clean the data.
Thirdly, factor correlation analysis (Pearson analysis)
After the analysis of the exploratory factor EFA, the authors carried out
analyzing correlation coefficients Pearson (sign: r). To perform correlation
analysis, it is essential to calculate the mean values of the variables in the model.
This is done by classifying and rearranging factor groups after conducting tests
for reliability using Cronbach's Alpha and analyzing the exploratory factor EFA.
According to Gayen (1951), it was essential to consider the Pearson
correlation coefficient r in the range [-1, +1], if r < 0 showed a positive
relationship and vice versa; if r = 0 indicated that the two variables were not
linearly related.
According to Andy Field (2009), it was necessary to additionally examine
the results of Sig test to evaluate whether the linear relationship between the two
variables was statistically significant. If Sig. was greater than 0.05, there was no
linear correlation between the variables, and vice versa.
Fourthly, regression analysis by OLS method
Regression analysis is responsible for identifying the influence of the
independent variables (HDCVtb, TDNQTtb, TNHAPtb, CHHTtb và VHDNtb)
on the dependent variable GKCVtb. The principle of the OLS regression method
is to vary the residual variation ε, which is calculated by the sum of squares of all
residuals combined to be the smallest. In the OLS regression model, we focus on
the following indicators:
- Sig. total of independent factors at a 5% significance level to determine
whether the independent factors have an effect on the dependent variable?
- R squared and adjusted R squared to evaluate the suitability of the model,
the influence level of the independent variables included in the regression
model on the variation of the dependent variable.
- The Durbin Watson coefficient evaluates the phenomenon of first-order
serial correlation, if this coefficient is in the range [1.5; 2.5] then the model
does not violate the first-order serial autocorrelation assumption.
- ANOVA result and Sig. test F with significance level < 0.05 shows that the
regression model is appropriate and vice versa.
- VIF coefficient less than 10 indicates that the model does not have
multicollinearity.
- The Mean value of Histogram graph is near 0 and its standard deviation is
Std. Dev close to 1 indicates whether or not the model survey data has a
normal distribution.
4. Research outcomes
4.1. Reliability test of measurement scale (Cronbach’s Alpha)
Table 2 showed that the independent variables all had Cronbach's Alpha
coefficients from 0.818 or higher (>0.8). The total correlation coefficients of each
observed variable were greater than 0.521 (> 0.3), showing that the independent
and dependent variables included in the model were well used.
4.2. Exploratory factor analysis EFA
Conducting EFA analysis for the independent and dependent variables of the
model, using the principal component extraction method and varimax rotation
method, yielded six factor groups with 27 observed variables (table 2).
KMO index = 0.816 (>0.5) validated the appropriateness of exploratory
factor analysis and the significance of the data included in factor analysis. The
Chi-Square statistic of the Barlett Test had a value of 6144,587 at the Sig = 0.000
« 0.05 significance level, indicating that the KMO test results were statistically
significant at the 5% significance level.
The analysis of variance extracted reached a value of 68.565% (>50%),
demonstrating that 68.565% of the variation of the data was explained by one
factor, the measurement scales were extracted and accepted. The stopping point
when extracting factors was at the factor 1 with eigenvalue of 1.873 (>1).
 Loading factor was bigger than 0.5, so, it could be concluded that
measurement scale of factors was satisfied (Giao & Vuong, 2019).
Table 2: Cronbach’s Alpha coefficient and Rotated component matrix EFA

Rotated Component Matrixa

Component

Cronbach’s Rearrange
Alpha factors
1 2 3 4 5 6 coefficient

TDNQT4 .875

TDNQT3 .837

TDNQT5 .804
0.850 TDNQTtb
TDNQT6 .711

TDNQT2 .615

TDNQT1 .602

GKCV2 .891

GKCV1 .886
0.858 GKCVtb
GKCV3 .844

GKCV4 .829

VHDN4 .910

VHDN3 .848
0.917 VHDNtb
VHDN2 .843

VHDN1 .843

HDCV4 .827 0.818

HDCV3 .812
HDCVtb
HDCV2 .790
 HDCV5 .712

HDCV1 .559

CHHT3 .900

CHHT4 .885 CHHTtb

CHHT2 .813 0.866

CHHT1 .626

TNHAP3 .84
2 TNHAPtb
TNHAP2 .82
1
0.823
TNHAP1 .80
4

TNHAP4 .70
6

Source: SPSS 20
4.3 Correlation analysis of factors
To conduct Pearson correlation analysis, the authors calculated the average
value of the independent and dependent variables on the basis of classification
and arrangement after Cronbach's Alpha reliability test and exploratory factor
analysis EFA (table 3).
The results of Pearson correlation analysis determined whether the
relationship between the dependent factor and the independent factors was really
correlated or not before running the regression model (table 3).
Table 3: Results of Pearson correlation analysis

Correlations

HDCVtb TDNQTtb TNHAPtb CHHTtb VHDNtb GKCVtb

GKCVtb Pearson .119* .272** .148** .364** .235** 1

Correlation
 Sig. (2- .017 .000 .003 .000 .000
tailed)

N 400 400 400 400 400 400

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Based on the outputs in table 4, it was seen that the Sig. coefficients of Job
attractiveness (HDCV), Influence of direct manager (TDNQT), Income
(TNHAP), Training and development opportunities (CHHT) were 0.017; 0.000;
0.000; 0.000; 0.000 respectively, all less than 5%. Meanwhile, the Pearson
correlation values of these factors Job attractiveness (HDCV), Influence of direct
manager (TDNQT), Income (TNHAP), Training and development opportunities
(CHHT), Enterprise culture (VHDN) and Employee engagement (GKCV) were
0.119; 0.272; 0.148; 0.364; 0.235. The statistical significance of the included
variables indicated that the linear regression model remained valid.
4.4. Regression analysis by OLS method
Table 4: Regression model outcome
Coefficientsa

Unstandardized Standardized Collinearity

Coefficients Coefficients t Sig. Correlations Statistics

Std. Zero-
Model B Error Beta order Partial Part Tolerance VIF

1 (Constant 1.208 .343 3.524 .000

)

HDCVtb -.025 .063 -.020 -.404 .687 .119 -.020 -.01 .868 1.151
8

TDNQTtb .244 .055 .209 4.451 .000 .272 .219 .201 .928 1.078

TNHAPtb .082 .055 .071 1.499 .135 .148 .075 .068 .910 1.099

CHHTtb .281 .049 .278 5.700 .000 .364 .276 .257 .857 1.167

VHDNtb .148 .054 .131 2.740 .006 .235 .137 .124 .895 1.118

a. Dependent Variable: GKCVtb

The analysis results of linear regression coefficients showed that the total
value Sig.of two factors HDCVtb and TNHAPtb was greater than 0.05 (5%), so
these two factors had no influence on Gen Z's employee engagement. When it
comes to TDNQTtb, CHHTtb and VHDNtb, they had the total value Sig less than
5%, so these factors all had an influence on Gen Z's employee engagement with a
95% significance level.
Thus, the regression equation (according to unstandardized coefficients) of the
model, which showed the relationship between TDNQT, CHHT, VHDN and
employee engagement (GKCV) would be as below:
GKCV = 1.208 + 0.244*TDNQT + 0.281*CHHT + 0.148*VHDN
The regression results showed that Gen Z's employee engagement had a linear
relationship with 3 factors: Influenceof direct managers, Training & development
opportunities, and Enterprise culture. Specifically, the author separated each
factor to analyze and see the influence on Gen Z's employee engagement based
on the standardized Beta coefficient.
Training and development opportunities (CHHT) had the greatest influence
on Gen Z's employee engagement (standardized Beta coefficient is 0.278, same-
direction impact), followed by Influence from direct managers (TDNQT)
(standardized Beta coefficient is 0.209, same-direction impact) and Enterprise
Culture (standardized Beta coefficient is 0.131, same-direction impact).

4.5. Evaluate and test regression model

First, testing the suitability of the model
The results of linear regression analysis showed that the model has R2 =
0.197 and adjusted R2 = 0.187, indicating that the model's suitability was 19.7%.
This meant the variables TDNQT, CHHT, VHDN were explainable for 19.7% of
the variation in Gen Z's employee engagement.
Table 5: The suitability of Regression model
Model Summaryb

Durbin-
Change Statistics Watson
Std.
Error of R Sig. F
R Adjusted the Square F Chang
Model R Square R Square Estimate Change Change df1 df2 e

1 .444a .197 .187 .77199 .197 19.309 5 394 .000 1.982

a. Predictors: (Constant), VNDNtb, TNHAPtb, TDNQTtb, HDCVtb, CHHTtb

b. Dependent Variable: GKCVtb

c. Dependent Variable: GKCVtb

 Next, the authors assessed the model's suitability using F-test with variance
analysis (Table 6).
Table 6: Variance analysis
ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 57.538 5 11.508 19.309 .000b

Residual 234.814 394 .596

Total 292.353 399

a. Dependent Variable: GKCVtb

b. Predictors: (Constant), VNDNtb, TNHAPtb, TDNQTtb, HDCVtb, CHHTtb

Applying the F test in analysis of variance with value F = 19.309 to assess

the appropriateness of the regression model with the aim of considering that the
factor Employee Engagement of Gen Z had a linear relationship with independent
factors. And, with significance level Sig. = 0.000 < 0.05, showing the suitability
of the model, it meant that the combination of factors in the model was
explainable for the change in the dependent factor. In other words, there was at
least one independent factor that affected the dependent factor
In a nutshell, the multivariate regression model satisfied the evaluation
criteria and suitability test for deriving research conclusions.
Second, multicollinearity testing: it can be seen from Table 4 that all of the
VIF coefficients of the model's factors were less than 10, indicating that the
model was not affected by multicollinearity.
Third, correlation testing: it could be seen from table 5 that the Durbin –
Watson coefficient was 1.982, which is close to 2, indicating that there was no
first-order serial autocorrelation, or no correlation between the residuals.
Fourth, the normal distribution of the residual testing: the authors determined
whether the residuals were normally distributed or not by constructing a
frequency chart of the residuals' histogram distribution (Figure 1).
Figure 1: Frequency histogram of standardized residuals
 From figure 1, it could be seen that the graph had a bell shape, the average
value was -9.82*10-16, close to 0; standard deviation value Std. Dev = 0.994 was
close to 1. Thus, it could be concluded that the distribution of the residuals was
approximately normal.
Therefore, conclusions can be drawn:
Rejecting hypothesis H1, meaning there is no correlation between job
attractiveness and the engagement of Gen Z employees to the business due to the
Sig coefficient. = 0.687 > 0.05.
Accepting hypothesis H2, which states that Gen Z employees' engagement to
the enterprise is directly influenced by the influence from direct manager.
Accepting hypothesis H3, meaning that training and development
opportunities have an influence on Gen Z employees' engagement to the
enterprise.
Rejecting hypothesis H4, meaning there is no correlation between income
and engagement of Gen Z employees to the enterprise.
Accepting hypothesis H5, meaning that enterprise culture affects the
engagement of Gen Z employees to the enterprise.
The findings of the regression analysis indicated that there were several
elements that influenced the engagement of Generation Z employees within the
enterprise. Among these aspects, the training and development opportunities
factor had the most significant influence, followed by the influence of the direct
manager and enterprise culture, respectively.
5. Conclusion and management implications
5.1. Conclusion
Conducting EFA analysis for the independent and dependent variables of the
model, using the principal component extraction method and varimax rotation
method, six factor groups with 27 observed variables were produced as the result.
The authors calculated the average value of the independent and dependent
variables on the basis of classification and arrangement after Cronbach's Alpha
reliability test and EFA exploratory factor analysis. This indicated that all of the
included variables were statistically significant and that the linear regression
model could proceed.
The regression equation results (according to unstandardized coefficients) of
the model showed the relationship between Influence of direct manager
(TDNQT), Training and development opportunities (CHHT), Enterprise culture
(VHDN) and Employee engagement (GKCV) as below:
GKCV = 1.208 + 0.244*TDNQT + 0.281*CHHT + 0.148*VHDN
So, to enhance engagement among Gen Z, it is imperative to establish
conducive learning environments and enhance their qualifications. Additionally,
the active involvement and support of direct managers within the enterprise, as
well as promoting a collaborative enterprise culture, are crucial factors.
The authors continued to evaluate the reliability of the regression model and
discovered that the Training and development opportunities factor had the
greatest influence on Gen Z's employee engagement, followed by influence from
direct manager and enterprise culture.
5.2. Management implications
5.2.1 Training and development opportunities
Gen Z individuals exhibit a strong inclination towards independence,
displaying confidence in their personal viewpoints and actively seeking
opportunities to validate their capabilities. Thus, business administrators should
exercise caution in avoiding an excessive emphasis on developing stereotypical
orientations during personnel training. Business executives should actively listen
to Gen Z's opinions and offer them mentorship for individual guidance. Gen Z
exhibits a strong career focus and well-defined goals, presenting businesses with
the chance to engage their enthusiasm for work by aligning personal and
organizational objectives. Furthermore, it is necessary for businesses to enhance
the inclination of Generation Z individuals to opt for a working environment that
fosters creativity and facilitates experiential learning. The establishment of
creative learning environments within workplaces can enhance the productivity
and competitive advantage of Generation Z employees. Consequently, businesses
are encouraged to foster such environments to harness this advantage.
5.2.2 Role of direct manager
The desire to feel secure and valued at work is one of the most
distinguishing characteristics of Gen Z employees in comparison to those of prior
generations. Feeling significant, participating in decision-making, and being
empowered are the three most influential factors on Gen Z employees in the
workplace. Therefore, businesses must alter their methods of human resource
management. Managers should empower employees rather than manually
assigning detailed tasks. Hence, businesses require more effective management
tools that enable executives to empower employees while monitoring progress
and quality of work simultaneously. Managers should be mindful that recognizing
Gen Z employees involves acknowledging not only their achievements and hard
work, but also actively listening to their perspectives on business matters. Direct
managers must be aware that one of the ways to promote work ethic and retain
Gen Z is to give them a sense of respect for their opinions and contributions in
their roles, and to encourage them to propose work solutions and value their
insights.
5.3.3. Enterprise culture
Enterprise culture refers to the comprehensive set of cultural values that are
established and cultivated over the lifespan and growth of a corporation. These
values, norms, concepts, and traditions become firmly ingrained in the business’s
operation. Enterprise culture influences the emotions, thinking and behavior of all
business members in pursuing and implementing set goals, creating differences
between businesses. Additionally, enterprise culture is also known as the
"spiritual pillar" that forms the enterprise's foundation, the adhesive that binds
members towards shared objectives and actions. Enterprise culture fosters a
positive working environment, motivates employees to strive for shared
objectives, and creates the same direction for the entire enterprise. Gen Z is the
group currently making significant changes in the workplace. According to the
current development pattern, the inability to attract Gen Z talent may lead to
business development stagnation and a significant talent shortage for businesses
in the future. Having said that, Gen Z prioritizes a good enterprise culture over all
other factors when choosing an employer. If an enterprise has a strong or
appealing enterprise culture, it will be able to attract talented employees who are
encouraged to promote individual creativity, thereby helping the enterprise to
gain numerous competitive advantages.