Factors Affecting Employee Engagement among Generation Z in Small and Medium-Sized Enterprises in Hanoi

Abstract

In the context of Generation Z is increasingly accounting for a larger proportion of the workforce in small and medium-sized enterprises (SMEs) in Hanoi, enhancing employee engagement has become a critical concern for managers. This study aims to examine the factors influencing employee engagement among Generation Z employees within SME settings. Data were collected from 259 valid survey responses and analyzed using Ordinary Least Squares (OLS) linear regression. The findings indicate that six factors—supportive leadership, career development opportunities, a positive working environment, recognition and rewards, person–organization value fit, and work–life balance—have significant positive effects on employee engagement. Based on these results, several managerial implications are proposed to enhance engagement levels and retain young talent in small and medium-sized enterprises.