Problem solving for misalignment with generation Z: A case study of organizational challenges in a Japanese-invested real estate enterprise in Vietnam

Abstract

This thesis investigates the misalignment between Generation Z (Gen Z) employees and the existing Human Resource (HR) framework at MC Vietnam Urban Development Co., Ltd. (MCUDV), a Japanese-invested real estate holding company. For this thesis, Gen Z, defined as those born after 1995, used as shorthand for early-career professionals, now accounts for nearly 50% of MCUDV’s workforce, yet their retention has become a critical challenge. However, the company has experienced persistent challenges in retaining this cohort. In 2024, Gen Z turnover reached over 50% - over twice the company average of 31% - while recruitment costs increased by 60% between 2021 and 2024, exceeding the planned budget by 21.8%. These figures illustrate a structural issue that extends beyond routine HR operations. Through HR data analysis, fourteen cross-functional interviews, and theory-based validation, the study identifies one overarching main problem: Gen Z-HR Framework Misalignment, defined as a structural and cultural misalignment, a structural and cultural misalignment between MCUDV’s non-standardized HR Framework and the expectations, values, and work preferences of Gen Z employees. This misalignment manifests through three reinforcing sub-causes: (1) inconsistent and outdated HR processes (onboarding, feedback, career development), (2) limited people-management capability in handling Gen Z’s needs for guidance, clarity, and recognition, and (3) cultural rigidity rooted in Japanese hierarchical norms that conflict with Gen Z’s preference for transparency, autonomy, and open communication. The thesis proposes an integrated three-pillar roadmap to realign MCUDV’s HR framework with Gen Z expectations: • Standardization and modernization of HR policies and processes • Strengthening people management capability • Gradual cultural transformation The research contributes theoretically by applying contemporary engagement, work-design, and generational-difference frameworks to the context of Japanese FDI enterprises in Vietnam. Practically, it offers a master action plan with timelines, KPIs, and cost implications to support MCUDV in reducing Gen Z turnover to ≤25%, optimizing recruitment expenses, and sustaining long-term organizational performance.