Redefining Success: Why Gen Z is Rethinking Corporate Careers and Embracing New Paths to Fulfillment
The buzz phrase “Gen Z does not dream of labor” swept the popular social media TikTok in 2022, representing the ideology of the young generation who rejected being part of the traditional workforce. Quiet Quitting was another similar phenomenon that hit social media simultaneously. Quiet Quitting is when workers who feel less connected, undervalued, and stressed due to excessive workload and toxic culture decide to disengage and resign from the company without any signs. According to the CNBC survey(1), Gen Z is the least enthusiastic and engaging with their jobs, leading the trend in the workplace. Based on the study, 45% of Gen Z workers do not put forth their best effort for their work.
In fact, Not in Education, Employment, and Training (NEET) has become a severe issue for many economies worldwide for decades. NEET represents a young workforce not in employment or any preparatory stage to seek future employment. For example, the NEET population aged between 15 and 29 accounts for 20.9% of the age group in Korea. Many major economies are experiencing the same issue (11.2% in the U.S., 23.5% in India, 23.4% in the U.K.)(2).
When the term was first coined in the U.K. in the 1980s, the cohort at that time did not willingly become NEET as much as is the case today. It was an outcome of economic recession, and the NEET population was slowly isolated from society because they could not make their first step into society. However, a significant portion of the recent NEET population is voluntary. For example, one-third of the NEET population in Korea are not active jobseekers.
Another factor contributing to this trend is that Korean companies no longer heavily rely on recruiting fresh college graduates, used to represent ample job opportunities for the young generation. Companies prefer hiring experienced workers because it is more effective and efficient. Training people with the aspiration of retaining them for long years is an obsolete concept considering the current dynamics in the job market (3).
Of course, challenging job markets still produce today's NEET population because the number of decent jobs is not growing as the job market is rapidly polarized. While middle-income jobs have disappeared, less-skilled and inexperienced workers have no choice but to start with low-paying jobs, which is the most likely situation for the young generation. Young jobseekers have higher expectations because they are highly educated and live the highest standard of life ever. However, the reality is harsh.
Another pivotal factor in shaping the trend is that people dream of life without depending on active employment. As we witnessed in the movement on social media, the young generation has forged a new identity and lifestyle. The newly joined workforce pays high value to mental health and is susceptible to stress caused by corporate environments. Younger workers tend to have difficulty adjusting to the corporate organization and culture because it seems oppressing and unreasonable (4). This trend is expected to accelerate because of pandemic-influenced workforce inflows (5).
In addition, the value of having a corporate job has diminished due to the lowered lifetime earnings that people can expect from employment compared to inflation’s impact on real estate, cryptocurrency and stock investments. According to the Federal Finance Housing Agency in the U.S., the increase in housing prices (74%) has outpaced wage growth (54%) in the last decade. This impact would be more significant in other countries, as the U.S. job market reflects the most decent wage growth among all the major economies. This polarization has pushed people to find a way to afford living expenses in addition to or outside traditional paychecks.
As a result, younger people shun corporate jobs. Although the official retirement age is postponed due to social change and political pressure on government finance, many corporations might soon face challenges in replacing the retiring workers. It is not surprising to see an aging workforce in many companies in Korea (5).
However, this trend will emerge as a good opportunity for the young generation. For the fledglings that neglect and undervalue traditional employment as the corporate workforce ages, fewer opportunities may arise for them in 5 to 10 years. However, such opportunities would only be available to those who can adjust themselves and prove their worth adapting to the corporate system and culture. I’d expect the bar to be low, with only a few willing to adjust as the corporate culture recalibrates to fit in a new generation of folk. This organizational transition will fast-track the younger generation, as the baby boomers experienced during the era of hypergrowth.
Fast-forwarding this prediction, the possibility of being indispensable becomes very real. Even if AI and automation technologies take leading roles, companies will still need to be run by people, albeit a lower number. Honing one’s capabilities and with the right mindset could set you up for success regardless.
For the more ambitious, such a pragmatic approach to life could also pave the way for a personal project or side hustle. Taylor Pearson, who wrote The End of Jobs, argues that people should become entrepreneurs to survive the market change. I completely agree with his argument. However, entrepreneurs need financial or non-financial capital (social network, experience, etc.) to start their businesses. Not everyone is built to be a Mark Zuckerberg entrepreneur with a breakout success of an idea. For those without such privilege, the corporate world can serve to connect future entrepreneurs with the right resources and experience to build a solid foundation of success. With a slight tweak in perspective, you can use the best of your corporate career for future aspirations as an entrepreneur.
We live in a world where everyone is perplexed by uncertainty and new norms. Unsurprisingly, the young generation must feel more frustrated than prior generations because of such massive changes. However, I hope they do not waver and fall prey to the sugar-coated success stories on social media. Every challenge poses a new opportunity, requiring a noble approach. If many people say no to something, it could be the solution no one can figure out. Undermined corporate jobs may be such.
References:
2) https://genderdata.worldbank.org/en/indicator/sl-uem-neet-zs
3) In South Korea, people change their jobs every 5.9 years on average, which is the lowest tenure in OECD https://www.statista.com/chart/20571/average-time-spend-with-one-employer-in-selected-oecd-countries/#:~:text=Outside%20of%20Europe%2C%20employees%20changed,the%20lowest%20in%20the%20OECD
4) https://koreapro.org/2024/03/south-koreas-youth-exodus-challenges-corporate-culture/
6) https://www.chosun.com/english/national-en/2023/12/21/VEPBR2RC3VGBXMJ4GDGV5SJCO4/
About the Author
JW Lee is the Korea Business Development Manager with Flynde, a global company providing translation solutions to businesses of all sizes.
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