The impact of organizational culture on gen Z employee engagement in Ho Chi Minh City

Abstract

<p><span style="font-weight: 400;">The rapid growth of the Gen Z workforce in Vietnam, particularly in major urban areas, poses challenges for enterprises not only in attracting but also in retaining and engaging this young generation. Recent surveys indicate that the engagement level of Gen Z employees remains limited, making the development of an organizational culture aligned with their values an urgent priority. Organizational culture - understood as a system of shared values, norms, and beliefs - is considered a fundamental factor with a strong influence on employee engagement. Drawing on Denison’s (2000) theoretical framework of organizational culture and Saks’ (2006) model of employee engagement, this study examines the impact of each cultural component on the engagement of Gen Z employees. A quantitative approach was employed, with survey data collected from 315 Gen Z employees across various industries and analyzed using structural equation modeling. The findings reveal that four cultural components-core values, internal communication, learning and innovation orientation, and a supportive and respectful environment - all positively influence engagement, with the supportive and respectful environment exerting the most substantial effect. Based on these results, the study proposes managerial implications to help enterprises shape and develop an organizational culture that better aligns with the expectations of Gen Z employees.</span></p>