Motivating the multigenerational workforce of 2030 in Hong Kong

Generations represent groups of people who have experienced the same cultural and political milestones during a specified period. In Hong Kong, these milestones include the Japanese occupation during World War II, the post-war economic boom, the 1967 riots, the 1997 handover and social unrest. These events have left indelible marks on the workforce, shaping their values, work ethics and expectations.

Millennials and Generation Z now dominate Hong Kong’s workforce, driving demands for work-life balance, technology and inclusivity. Generation X holds many leadership roles and are valued for their adaptability. Baby Boomers are largely in strategic roles, while Traditionalists are mostly retired or in consultative positions. As younger generations continue to grow in influence, meeting their expectations will be key to retaining talent.

Distinguishing factors

Each generation has its own unique psychographic characteristics and other distinguishing features that differ across generational lines. Examining characteristics such as the priorities, interests, values and beliefs of each generation allows organisations to take a deeper look and gain better insight.

Cultural impacts

 Each person has a unique perspective based on the events they have lived through, the culture of the time, and their age, gender, race and ethnicity, education and socioeconomic status. All these factors influence an individual’s characteristics, perceptions and motivations. Because of this, each generation has different expectations, assumptions, priorities and approaches to work and communication.

Leaders are tasked with developing inclusive workplace cultures to serve the varying needs of each generation, with each holding unique – and sometimes conflicting – beliefs, values, attitudes and perceptions. The multigenerational workplace requires flexible leadership, policies and programs, as well as experiences tailored to generational preferences.

Traditionalists (born before 1946)

Traditionalists in Hong Kong were born during or just after World War II, a time when the city was under Japanese occupation (1941-1945). This period of intense hardship fostered resilience and a strong sense of loyalty to the community and authority. Post-war, Hong Kong rapidly developed into a manufacturing hub, laying the foundation for its future as a global financial centre.

• Impact on the workforce: Traditionalists embody values of stability, loyalty and respect for authority, traits that were essential during Hong Kong’s post-war reconstruction. While few are still working today, those still in the workplace are likely to value long-term employment, predictable career paths and benefits like pensions, which provide security. This generation is often associated with a preference for hierarchical organisational structures and clear lines of authority.

Baby Boomers (born 1946-1964)

Baby Boomers in Hong Kong were shaped by the rapid industrialisation and economic growth that occurred in the 1950s and 1960s. During this time, Hong Kong transformed into an economic powerhouse, attracting significant foreign investment and becoming one of the world's leading financial centres. The influx of refugees from mainland China following the establishment of the People’s Republic of China in 1949 also played a crucial role in shaping this generation’s values, particularly their strong work ethic and desire for financial security.

• Impact on the workforce: Baby Boomers are often characterised by their dedication and competitive nature. Having witnessed Hong Kong’s rapid economic growth, they tend to value career achievements, public recognition and financial stability. Many Baby Boomers occupy senior management positions today, bringing with them a wealth of experience and a commitment to traditional work values. 

Generation X (born 1965-1980)

Generation X was profoundly impacted by the political instability of the 1967 leftist riots and the subsequent economic transformations of the 1970s and 1980s. The Sino-British Joint Declaration in 1984, which set the stage for the 1997 handover of Hong Kong to China, introduced an era of uncertainty that further fuelled the pragmatism and adaptability of this generation.

• Impact on the workforce: Gen Xers are known to be pragmatic and independent in the workplace. They value flexibility and autonomy, often preferring to be evaluated based on their results rather than the hours they work. The political and economic uncertainties they experienced have made them resilient and adaptable – qualities that are highly valued in today’s rapidly changing work environment. According to the Hong Kong Productivity Council, nearly 70% of Hong Kong employees, including GenX, see hybrid work as essential for work-life balance.

Millennials (born 1981-1996)

Millennials in Hong Kong came of age during the lead-up to the 1997 handover and the Asian Financial Crisis of 1997-1998. These events, coupled with the rise of digital technology, have made Millennials highly adaptable, tech savvy and globally minded. They are the first generation to experience Hong Kong under the “one country, two systems” framework, navigating the complexities of local identity within a globalised economy.

• Impact on the workforce: Millennials value work-life balance and purpose in their careers, shaped by the economic instability and political uncertainty they witnessed. They are more likely to seek jobs that offer personal growth, flexible working conditions and a sense of meaning. This generation also places a strong emphasis on corporate responsibility and ethical practices. About 90% of Hong Kong Millennials prioritise a flexible lifestyle over a high salary.

Generation Z (born 1997-2004)

Generation Z in Hong Kong has been shaped by significant events prior to 2004. The 2003 mass protests against Article 23 marked a critical moment when many youths opposed national security legislation perceived as a threat to civil liberties, setting the stage for future activism. The 2008 global financial crisis heightened economic uncertainty, impacting job prospects for young people. Meanwhile, the 2011 Chief Executive Election ignited discussions on democratic representation, further influencing Gen Z’s views on authority and governance. Collectively, these events have fostered a generation that prioritises social justice, political awareness and civic engagement.

• Impact on the workforce: Gen Z expects workplaces to align with their values, particularly around issues of social justice and environmental sustainability. They are vocal about their expectations and prefer employers who offer flexibility, opportunities for personal growth and a strong alignment with their ethical values. Mental health and well-being are particularly important to this generation. According to a survey by the Hong Kong Institute of Human Resource Management (HKIHRM), 76% of employers believe that implementing wellness-related initiatives plays a key role in attracting and retaining Gen Z talent.

Managing a multigenerational workforce in Hong Kong requires a nuanced understanding of the historical and cultural contexts that have shaped each generation. Organisations that succeed in engaging and retaining multigenerational talent are those that recognise the unique needs and values of each generation and adapt their strategies accordingly. According to Protiviti’s preliminary research on the multigenerational workforce with the London School of Economics, companies that invest in understanding generational differences see higher levels of engagement and productivity.

1. Offer flexible work hours and arrangements: Flexible work arrangements are crucial in retaining talent, particularly among Millennials and Gen Z, who prioritise work-life balance. In Hong Kong, where long working hours have been the norm, offering hybrid work options and flexible hours can significantly improve employee satisfaction and retention.
2. Think beyond standard compensation for benefits and perks: Burnout is a significant concern in Hong Kong’s fast-paced work environment. The AXA Mental Health Study 2024 reports that 77% of employees have faced at least one mental health challenge related to their jobs, with 82% considering disengagement as a coping strategy.
3. Be smart about AI: As automation and AI continue to reshape industries, companies in Hong Kong need to proactively engage their workforce in discussions about how these technologies can enhance their roles rather than replace them. According to Randstad's 12th annual Employer Brand Research in Hong Kong SAR, 80% of respondents say AI has already impacted their jobs to varying degrees. Millennials feel this impact the most (82%), followed by Gen X (78%), Baby Boomers (73%), and Gen Z (71%).
4. Invest in diversity, equity and inclusion (DEI) and corporate social responsibility (CSR): Younger generations, particularly Gen Z and Millennials, are highly attuned to issues of social justice and environmental sustainability. According to the Hong Kong Stock Exchange’s (HKEX) 2022 Review of ESG Disclosures, 85% of listed companies in Hong Kong reported that their employees consider the company’s ESG initiatives to be critical to job satisfaction and retention. Furthermore, the review highlighted that 78% of employees would prefer to work for companies with robust ESG commitments and transparent reporting. Companies that prioritise ESG initiatives foster greater job satisfaction and retention among employees, who increasingly seek employers with strong commitments to social and environmental responsibility.
5. Be intentional about personal and professional growth: Continuous learning and career development are top priorities for all generations in Hong Kong, especially in a competitive market. According to the Hong Kong Institute of Human Resource Management (HKIHRM), 53% of employers are providing opportunities for career development to enhance their employee value proposition. Companies that invest in training, mentorship and clear career progression paths will be more successful in retaining top talent.

Multigenerational perceptions of recognition

Rewards and recognition

To support the unique needs of five working generations, many leaders utilise strategic workforce-recognition programs with customisable components and modules, enabling individualised recognition and rewards that reflect their employees’ personal needs as they vary based on age, life circumstances and personal preference. Successful systems recognise performance through performance measures, on-the-spot recognition by managers and peer-to-peer recognition. A customised program can incorporate rewards that satisfy each generation’s needs and support the organisation’s values.

Monetary and non-monetary rewards: What the generations want

Monetary benefits — “Show me the money!”

Monetary benefits reward employees for excellent job performance with money — including profit sharing, bonus incentives, stock options, scheduled bonuses (e.g., holiday and performance-linked) and additional paid vacation time. Monetary rewards can quickly become entitlements, as recipients tend to consider them part of their compensation. Money is also difficult to socialise, as it can be a taboo discussion topic among friends and family members. Not only do monetary benefits cost employers more than their non-monetary counterparts, but they also provide less overall value and impact on employees.

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Non-monetary benefits — “Give me an experience.”

Effective non-monetary rewards range from flexible work hours, training, travel and experiential rewards to badges, gift cards and merchandise. Non-monetary benefits are often viewed as opportunities and should vary based on where the employee is in their career and their life.

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With myriad programs and rewards to choose from, leaders must familiarise themselves with the five working generations to develop a comprehensive recognition strategy that meets their employees’ individual needs and preferences.

Traditionalists want monetary rewards to improve their financial security. They typically don’t want a spectacle, but instead appreciate subtle acknowledgement from their leaders when they make a difference. Traditionalists appreciate benefit packages that include long-term care insurance and catch-up funding as they near retirement. They also appreciate memorabilia like trophies, plaques and certificates. Flexible work schedules and consulting allow time to attend medical appointments and tend to other quality-of-life concerns Traditionalists share.

Baby Boomers prefer bonuses and promotions over vacations and other non-monetary rewards. They also respond well to coaching and look for continued learning opportunities to find personal satisfaction in their work. Ask a top-performing Baby Boomer to handle the company presentation at an industry event. Ask for their input on issues related to company strategy or topics that seem important to them. Above all, they want to feel valued by the organisation. Motivational messages that show their contributions are critical to the company’s success will go a long way.

Generation X prefers informal, rapid recognition. They are motivated by performance-based rewards and enjoy recognition through title, praise, pay and leadership opportunities. Gen Xers want to be recognised openly and given rewards they can use in their personal time. They value flexibility in their work, and many would refuse a promotion if their quality of life outside of work were compromised. To successfully retain Gen X employees, create job conditions that enable strong ties to family life. Reward Gen Xers with on-site childcare, tuition-reimbursement programs or telecommuting opportunities.

Generation Y likes instantaneous communication and appreciates internal social networks, company chat and other channels that support increased efficiency and connectivity with their peers. With a strong focus on family and work-life balance, this generation is often motivated by rewards they can enjoy at home. Non-monetary rewards like additional time off or free tickets to events they can enjoy with family or friends make a big impact with this generation. Millennials also appreciate validation for their efforts and feel valued when leaders and peers solicit their opinions and trust them to work autonomously. Above all, Gen Y wants to feel like they are part of a work family and have strong ties to company culture.

Generation Z is strongly connected to technology but prefers in-person recognition and praise. Eager to make a difference both at work and in the world, they are motivated by exclusive opportunities and experiences over cold, hard cash. To reward a top-performing member of Gen Z, ask them to take charge of a new, innovative project. Added responsibility and critical personal contributions are what they need to be engaged with their work. They also appreciate telecommuting options and a certain level of independence.

Planning for the future of work requires a willingness to learn and adapt. For any organisation, people should be the priority. The workforce is an organisation’s most important asset. And today, as many employers struggle to attract and retain staff following a mass exodus from Hong Kong, people have more options than ever when it comes to finding organisations that meet their unique goals. If acquisition, engagement and retention are top concerns for organisations (and they should be!), reinventing strategy to meet the unique generational needs of the moment may be key to success.

More than ever, companies need innovative human capital practices to support the multigenerational workforce. Shifting demographics and declining engagement levels require a new way of planning for both sides of the employee/employer relationship. Organisations need to discard the standard one-size-fits-all model of talent management and embrace a more flexible alternative.

The workforce is changing. It’s now five generations, highly mobile, working virtually across the globe and with new considerations in workers’ personal and professional lives. Everyone wants to be engaged in their work and recognised for a job well done. Supporting the workforce of 2030 will involve reimagining work with innovative new processes, programs and tools. The result? A diverse workplace everyone will want to be a part of.