Job satisfaction differs greatly across Asia Pacific

Interestingly, results differ by generation. Gen Z employees, often considered digital natives, are the least optimistic with 47% believing in their companies viability for the next decade. In comparison, Millennials are the most optimistic with 56% expressing confidence in their companies' ability to thrive. This suggests that younger employees recognize the need for reinvention and transformation to stay relevant in the future.

Mr. Mai Viet Hung Tran, General Director, PwC Vietnam, commented, “In today's dynamic reality, change is constant. Understanding the current workplace dynamics can help leaders energize their workforce, tap into the power of their people and accomplish bolder goals. It’s encouraging that Vietnamese business leaders and employees have started on the journey of transformation. While each business transformation is different, the importance of people remains at the core. We must come together in new ways to build trust and deliver sustainable outcomes.”

Organizations can only successfully reinvent themselves if their people are fully engaged, motivated and eager to contribute. Are workers in Asia Pacific including Vietnam ready for this journey? The PwC survey identifies six factors underpinning reinvention readiness: business viability, employee sentiment, workforce skills, emerging technology, work environment and climate action. These results should be a wake-up call for companies across the region, many of whom have already been grappling with a skill and talent shortage for years.

Growing confidence and evolving aspirations

Levels of job satisfaction have not changed significantly over the past year. However, job satisfaction levels varied significantly across the region. Mature economies like Japan, South Korea, Hong Kong SAR and Taiwan reported lower levels of job satisfaction, with percentages ranging from 29% to 45%. On the other hand, employees in Thailand, Indonesia, the Philippines, China and India display higher levels of job satisfaction, with percentages ranging from 70% to 79%.  In Vietnam, 59% are very or moderately satisfied with their jobs, consistent with Asia Pacific (57%).

Roughly 40% of employees expressed that they are extremely or highly likely to ask for a pay raise or promotion in the next 12 months. Vietnam employees are slightly less likely to ask for a promotion (34%) and change employers (20%) than their Asia Pacific counterparts. These figures represent a 7-10% increase compared to the previous year's survey, indicating increased confidence among employees to seek better compensation or career opportunities. The younger generation (Gen Z and Millennials), employees at senior levels, and those working in larger organizations are more inclined to ask for a pay raise, seek promotion, or consider changing employers, driven by factors such as seeking new experiences and new skills, or looking for opportunities to make a more direct contribution.

The Vietnam labor workforce also demonstrated a strong sense of urgency to push their employers to take climate action. 55% think their employers have a responsibility to take action to address climate change (vs. Asia Pacific 41%) and 55% believe their company is taking the right amount of climate action (vs. Asia Pacific 43%).

Today’s cooling economy is creating a cash-strapped workforce

Globally, employees are increasingly feeling cash-strapped as a cooling economy and inflationary challenges continue to impact workforce wallets. In Asia Pacific, while 76% of workers have one job, one in four juggle two or more positions, with significant variations across territories. This is higher than the global result, where one in five workers have multiple jobs. Territories such as Vietnam, Thailand and Malaysia have a higher prevalence of multiple jobholders. In contrast, Japan and Mainland China predominantly have single-job workers.

Cultural aspects play a crucial role in the workplace. Unfortunately, few managers foster a culture that embraces failure, creativity and experimentation. Only 32% of Vietnamese respondents agree that their manager often/usually tolerates small-scale failures and 32% agree that their manager often/usually encourages dissent and debate.

Feedback is essential for a culture of transformation and is significantly more common in Vietnam than the average in the Asia Pacific. 68% of Vietnamese respondents actively seek feedback and use it to improve their performance (vs. Asia Pacific 53%). Older employees, such as Gen X and Baby Boomers, are less likely to engage in feedback exchanges compared to younger generations. However, senior management demonstrates a higher propensity for seeking and providing feedback compared to non-managers.

Globally, employees are increasingly feeling cash-strapped as a cooling economy and inflationary challenges continue to impact workforce wallets. In Asia Pacific, while 76% of workers have one job, one in four juggle two or more positions, with significant variations across territories. This is higher than the global result, where one in five workers have multiple jobs. Territories such as Vietnam, Thailand and Malaysia have a higher prevalence of multiple jobholders. In contrast, Japan and Mainland China predominantly have single-job workers.

Cultural aspects play a crucial role in the workplace. Unfortunately, few managers foster a culture that embraces failure, creativity and experimentation. Only 32% of Vietnamese respondents agree that their manager often/usually tolerates small-scale failures and 32% agree that their manager often/usually encourages dissent and debate.

Feedback, which is essential for a culture of transformation, is significantly more common in Vietnam than the average in Asia Pacific. 68% of Vietnam respondents actively seek feedback and use it to improve their performance (vs. Asia Pacific 53%). Older employees, such as Gen X and Baby Boomers, are less likely to engage in feedback exchanges compared to younger generations. However, senior management demonstrates a higher propensity for seeking and providing feedback compared to non-managers.

Skills in the workplace are evolving, but human skills matter most

The ever-changing landscape has proved that workers’ skills will be disrupted significantly in the future. 61% of Vietnam respondents believe that the skills required for their jobs will undergo significant changes within the next five years and 59% are confident that their employers will provide them the opportunity to apply the skills that are most important to their career in the next five years.

Employees rank people skills such as adaptability/flexibility (70%), collaborative skills (70%) and critical thinking (68%) above technical or core business skills. Analytical/data skills are not far behind (66%).

Employees in Vietnam are very positive about the opportunities and benefits that Artificial Intelligence (AI) will bring to their career. 60% think that AI will help them increase their productivity/efficiency at work (vs. Asia Pacific 41%), and 58% view it as an opportunity to learn new skills (vs Asia Pacific 34%).

Industries such as Technology, Media and Telecommunications, as well as Financial Services, have the greatest potential for improved productivity through AI. In contrast, employees in Health and Government and the Public Sector express the most confidence that AI will not replace their roles.

As the workforce continues to evolve and employee attitudes shift, a new style of leadership is needed to steer the organization on a path of reinvention. PwC suggests several considerations for employers and leaders to better understand their people, unlock greater capability and accomplish bolder goals. These include engaging employees in the transformation process; embracing Artificial Intelligence (AI); adopting a skills-based approach to organizational development; discovering untapped skills hiding in plain sight; creating a culture of experimentation, creativity and a willingness to accept small-scale failures; ensuring that promotion decisions adequately consider ‘soft skills’ and a proactive approach to diversity and inclusion; investing in transformative leadership capabilities; involving employees in addressing climate change.