In Hong Kong and beyond, employers need to rethink the career ladder

In Hong Kong and across the globe, companies must reconsider conventional career progression. The once-simple formula of hard work leading to promotions and higher salaries is increasingly being questioned by a younger generation. "Job dropping," a trend in Western workplaces, refers to employees voluntarily abandoning management roles or declining promotions in favor of roles with less responsibility.

For Gen Z, career success is no longer solely defined by climbing the corporate ladder. A recent Deloitte survey of over 23,000 Gen Z and millennial respondents across 44 countries found that only 6% cited a senior leadership position as their primary career goal. The reluctance to climb the corporate ladder is more than just a trend; it reflects a deeper consideration of the true costs of promotion.

While a managerial role may offer a 10% salary increase, it also brings a significant increase in responsibilities, such as managing team dynamics, conducting performance reviews, and handling various meetings. Middle management can be particularly challenging, as managers must satisfy senior executives while motivating their teams, often without the authority or resources to resolve underlying issues.

The financial calculation of a promotion can be less appealing than it seems. For instance, moving from a flexible job to a demanding position with a 30% salary increase might require five days of work in the office, leading to longer commutes, higher transportation costs, reduced flexibility, and more working hours. The extra 40 hours per month effectively translates to an additional working week.

The question is whether the additional pay compensates for these additional efforts. The issue goes beyond financial calculations. Employees today are also considering factors such as time spent with family, personal interests, professional development, and overall well-being. In Hong Kong, where housing costs are high, financial pressures are significant, but employees are increasingly looking beyond their salary slips.

Furthermore, the way organizations define career progression is problematic. Exceptional practitioners may not always become effective managers, and some may prefer hands-on work over supervisory roles. Companies still often view management as the most obvious and sometimes only path to advancement, failing to recognize that talented individuals may have different aspirations.

Employers need to rethink the traditional career ladder, offering two equally respected paths: one for specialists and another for leaders. Compensation should reflect the value an individual creates, not just the number of people reporting to them. This approach extends beyond individual career choices. When talented employees repeatedly turn down management positions, companies should question whether their leadership roles are attractive enough.

Are the workloads reasonable? Do managers receive sufficient authority and resources? Are they trained to handle people-management responsibilities? Simply offering a better title and a modest salary increase is unlikely to convince someone to accept more pressure. Companies can also explore job redesign, better distribute responsibilities, and automate repetitive tasks.

Most importantly, they should allow employees to discuss career expectations before accepting a promotion. Job dropping is not without risks, however. Requiring a promotion may affect future earnings, career mobility, and long-term financial security. In times of economic uncertainty, stepping away from responsibility without a clear plan can lead to additional problems.

However, not all career detours are negative. Sometimes, the answer lies in better training, clearer boundaries, or a different management approach rather than a change in position. Ultimately, job dropping reveals the evolving nature of ambition. Career aspirations are not fixed; they can change over time. Someone who enjoys hands-on work today may find leadership more fulfilling later.

Another person may derive greater satisfaction from mentoring colleagues than from personal recognition. Gen Z may not be rejecting ambition but rather rejecting the notion that ambition must always lead upwards. For employers, understanding this distinction is crucial. The challenge now is not just to create promotion opportunities but to create meaningful work.