Is loyalty dead in Vietnam’s workforce?

Is loyalty dead in Vietnam’s workforce?

Job-hopping, especially among Gen Z, is on the rise. Dr Erhan Atay, Senior Lecturer in Human Resource Management at RMIT University Vietnam, sheds light on this growing trend and offers strategies to improve employee retention.

Job-hopping among young professionals in Vietnam 

Job-hopping is on the rise among Vietnam’s Gen Z, who now average just 2.2 years per job compared to 3.2 years for Millennials and 4.3 years for Gen X. This shift reflects broader generational changes: a survey found that approximately one‑third of Gen Z globally plan to switch jobs within two years, versus only 17 per cent of Millennials. 

Dr Atay says: “These figures suggest Vietnam’s young professionals are following global trends. They prioritise flexibility, career development, and better work-life balance over long-term tenure.”

Gen Z are not afraid to job-hop. (Image: Freepik) Gen Z are not afraid to job-hop. (Image: Freepik)

Why is job hopping common? 

Young Vietnamese professionals do not leave jobs lightly; they switch businesses with the intent to develop skills, progress careers, and enhance remuneration. 

"Job hopping is more prevalent among young Vietnamese professionals because of a sequence of related factors,” says Dr Atay.

Most firms continue to have strict, seniority-based promotion systems that have few tangible career-progressing opportunities for exemplary workers.  

Dr Atay observes that Vietnamese organisations like to work on narrow, seniority-based hierarchies to advance. For young professionals, this is demotivating. When years of contribution and performance are overlooked in favour of years served or nepotism, they become invisible.

Merit-based promotions are poorly designed in almost every industry. Therefore, ambitious employees resort to job-hopping to seek attention and reward. “It is not that these employees want to switch jobs,” says Dr Atay, “they simply will not wait ten years for an opportunity to become a leader when they are ready right now.”

Gen Z employees value ongoing learning and variety. Switching jobs is a way for them to acquire new skills and keep pace in a constantly changing economy. Decision Lab and Dreamplex's research identified that 44 per cent of Gen Z respondents select careers to learn new skills, and 21 per cent to gain knowledge over those who are driven by salary alone.

Toxic workplace cultures characterised by micromanaging, rigidity, or communication breakdown are powerful push drivers, even exceeding pay concerns dozens of times.  

Dr Atay stresses that the younger generation has rewritten the rule of loyalty. They do not remain with employers because they have to but they will stay where they are valued, pushed, and nurtured.

Dr Erhan Atay, Senior Lecturer in Human Resource Management, RMIT Vietnam Dr Erhan Atay, Senior Lecturer in Human Resource Management, RMIT Vietnam

Job-hopping isn’t always a win 

On the bright side, job hopping repeatedly can expedite skills acquisition for workers, broaden professional networks, and command higher short-term pay. 

However, Dr Atay highlights: “It can also mean insecurity, failure to acquire in-depth knowledge, and result in employer scepticism about commitment.”

For employers, high turnover comes at the cost of higher recruitment and training expenses, loss of team stability, and loss of institutional knowledge. High turnover also indicates problems with management, culture, or career development processes that will weaken employer reputation and long-term performance.

How can companies retain talent longer? 

Dr Atay shares some examples that Vietnamese companies can adopt to manage job-hopping.

Successful employee retention hinges on building relevant, supportive, and growth-oriented work cultures. Businesses like Vietnam's FPT Software have implemented speed-to-leadership talent pipelines, connecting high-potential employees with mentors and providing cross-functional exposure. Viettel drives employee development through external certification and upskilling programs, and Techcombank encourages mental wellness and flexible working to foster work-life balance.

Globally, Unilever has focused more on purpose-based flexible career progressions. Adobe’s internal mobility enables employees to try new careers. 

To retain ambitious talent, local businesses should develop structured and appealing career advancement plans. Suntory PepsiCo's Management Trainee Program can be an exemplar: it fast-tracks high-potential graduates into management roles within three years. The program features job rotations across Sales, Marketing, Finance, Supply Chain, and HR.

These practices, including career development, education investments, flexible working, and purpose-driven culture, have been successful in curbing turnover and creating loyalty.

Dr Atay concludes: “Retention is not about controlling; it is about connecting. When people are trusted, empowered, and respected, they stick it out and perform better.”

Story: June Pham

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