What Is eNPS? How to Measure Employee Engagement

What Is eNPS? How to Measure Employee Engagement

eNPS is an indicator that helps businesses measure employees' willingness to recommend their workplace, providing valuable insights into employee satisfaction and internal engagement. So, what is eNPS, how is it calculated, and how can businesses effectively apply this metric to their HR strategies?

Join HR2B as we explore the details of eNPS and how businesses can use it to enhance employee experience and build a sustainable working environment.

1. What Is eNPS and How Is It Calculated?

eNPS (Employee Net Promoter Score) is a metric that measures how willing employees are to recommend their company as a place to work. It is determined through a survey question:

"On a scale of 0 to 10, how likely are you to recommend this company as a place to work to your friends or family?"

eNPS helps businesses assess employees' willingness to recommend their workplace.

Based on their responses, employees are classified into three groups:

Group	Score	Meaning
Promoters	9–10	Highly engaged employees who are willing to recommend the company to others.
Passives	7–8	Relatively satisfied employees who are not yet fully engaged or motivated to actively recommend the company.
Detractors	0–6	Employees with less positive workplace experiences who may share negative feedback about the company.

eNPS Calculation Formula:

eNPS = Percentage of Promoters (%) − Percentage of Detractors (%)
The percentage for each group is calculated based on the total number of valid survey responses. Passives are not directly included in the formula.
The resulting eNPS score ranges from -100 to +100.

Example of eNPS Calculation:
Suppose a company receives 100 survey responses, consisting of:

• 60 Promoters
• 45 Detractors
• 5 Passives

The eNPS score is calculated as follows:
eNPS = 60% − 45% = +15

In terms of interpretation, an eNPS above 0 is generally considered a positive sign. A score between 10 and 30 may be considered good, while a score above 30 is often regarded as very good under some commonly used benchmarks.

However, these thresholds are not universal standards applicable to every business. To evaluate results accurately, companies should also consider industry characteristics, organizational culture, response rates, and changes in eNPS across different survey periods.

2. Why Is eNPS Not Enough to Measure Employee Engagement?

eNPS offers several advantages: it is simple, easy to implement, and convenient to track. However, it does not provide a comprehensive picture of employee engagement.

This metric primarily measures employees' willingness to recommend the company as a place to work rather than directly assessing their commitment, motivation, or effort at work.

For example, an employee may have a positive perception of the working environment but still perform only the minimum required tasks without proactively contributing to the organization.

Therefore, eNPS should be combined with other HR metrics to obtain a more accurate assessment of employee engagement.

eNPS should be combined with other HR metrics to provide a comprehensive assessment of employee engagement.

Another limitation is that the eNPS formula does not directly account for Passives, even though this group may require particular attention.
These employees do not have sufficiently negative experiences to become Detractors, but they are also not satisfied enough to actively recommend the company.
Without understanding the reasons behind neutral feedback, businesses may miss opportunities to improve the employee experience and identify potential turnover risks early.
This is particularly important because employee turnover can increase recruitment and training costs while disrupting business operations.

Finally, eNPS indicates employees' willingness to recommend the company at a particular point in time but does not explain the reasons behind the results.
A low score may be related to management styles, compensation and benefits policies, career development opportunities, or workplace experiences. However, businesses need additional surveys to identify the specific issues.
Furthermore, cultural differences and varying feedback habits across countries may influence how employees rate their workplace.
Therefore, when comparing eNPS across different employee groups or markets, businesses should interpret the results within the appropriate context. They should also combine open-ended questions, in-depth surveys, and other HR data to support more effective decision-making.

3. How to Measure Employee Engagement Comprehensively

If eNPS can be compared to a thermometer that reflects employees' perceptions, comprehensive employee engagement measurement is more like a full health check for the workforce.

Rather than relying on a single metric, businesses should combine multiple methods to understand how employees feel, the reasons behind their feedback, and how those perceptions translate into actual workplace behaviors.

Below are four steps to building an effective employee engagement measurement system.

• Step 1: Add Open-Ended Questions to Identify the Underlying Reasons

In addition to the eNPS rating question, businesses should include one or two open-ended questions, such as:What made you give this score?
What would need to change for you to feel more committed to staying with the company?

These responses help clarify the reasons behind employees' scores, ranging from workload and relationships with managers to career development opportunities.

When analyzing the feedback, businesses should categorize responses by theme to identify common issues and prioritize areas for improvement.

• Step 2: Conduct Regular Surveys and Track Trends

A single eNPS result at one point in time is insufficient to reflect changes in employee engagement.

Businesses should conduct regular surveys, such as quarterly surveys, to establish a baseline and monitor fluctuations over time.

After implementing improvement initiatives, such as management training or workload adjustments, conducting follow-up surveys can help evaluate changes in employees' perceptions.

More important than an individual score is the overall trend and the level of improvement following each intervention.

Regular surveys help businesses monitor changes in employee engagement over time.

• Step 3: Combine eNPS with Other HR Metrics

To gain a comprehensive understanding, businesses should combine employee perception data with engagement drivers and actual employee behaviors.

A measurement system can include three groups of indicators:

1. Perception Metrics

eNPS reflects employees' willingness to recommend the company as a place to work.

2. Engagement Driver Metrics

In-depth surveys help assess factors such as clear job expectations, recognition, and career development opportunities.

3. Behavioral Metrics

Voluntary turnover rates, absenteeism rates, and internal mobility rates help businesses better understand what is happening within their workforce.

These three data groups complement one another, helping businesses avoid making conclusions based solely on employee perceptions.

For example, consistently high eNPS scores alongside an increasing voluntary turnover rate may indicate the need to investigate workplace experiences, career development opportunities, or talent retention policies more closely.

• Step 4: Analyze Results by Employee Groups and Stages of the Employee Journey

To turn survey results into actionable initiatives, businesses should analyze eNPS by department, management level, and different stages of the employee journey.

This approach helps identify areas with lower engagement levels, such as the onboarding stage, interdepartmental collaboration, or relationships with direct managers.

Based on these findings, businesses can develop appropriate solutions, such as improving onboarding programs, strengthening management training, or adjusting HR policies.

Analyzing eNPS across different employee groups helps identify issues and develop appropriate HR solutions.

However, when analyzing results across smaller groups, businesses must ensure confidentiality and avoid revealing respondents' identities through survey results.

They should also consider sample sizes and contextual factors before attributing the causes of low scores to a particular department or manager.

Conclusion:
To gain a comprehensive understanding of employee engagement, businesses should combine eNPS with in-depth surveys and actual workforce data.
More importantly, every employee response should be translated into concrete actions to improve workplace experiences, enhance satisfaction, and retain talent.
With its HR consulting expertise, HR2B partners with businesses to develop appropriate HR strategies, helping build an engaged workforce and support sustainable organizational growth.Based on their responses, employees are classified into three groups:

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Shadow Payroll in Vietnam: When Do Businesses Need to Set It Up?

Shadow payroll is a mechanism that enables businesses in Vietnam to track and manage tax and social insurance obligations for foreign employees who continue to receive their salaries from their overseas parent company or another foreign entity. So, when do businesses need to establish shadow payroll? What factors should be reviewed, and how does this process affect employment costs?

Join HR2B as we explore the key considerations for businesses managing payroll for foreign employees working in Vietnam.

1. What Is Shadow Payroll? When Should Businesses Apply It?

Shadow payroll is a parallel payroll management mechanism used when foreign experts work in Vietnam but continue to receive their salaries through their overseas parent company's payroll system. Instead of making an additional salary payment in Vietnam, the local entity uses income data from the overseas payroll system to determine and fulfill any tax and social insurance obligations arising in Vietnam.

One of the key factors in determining the appropriate treatment is the employee's tax residency status. Before establishing the scope of taxable income, businesses need to consider the employee's physical presence in Vietnam, place of residence, and other relevant conditions.

Shadow payroll helps businesses manage the income and statutory obligations of foreign employees working in Vietnam.

Criteria Tax Resident Non-Tax Resident Determination criteria Meets the applicable conditions regarding physical presence or place of residence Does not meet the conditions for tax residency
Scope of taxable income Worldwide income, subject to applicable regulations Taxable income arising in Vietnam Employment income tax calculation Applicable tax rates for tax residents Applicable tax rate for non-tax residents

Therefore, before setting up shadow payroll, businesses must correctly determine each foreign expert's tax residency status and tax obligations, rather than relying solely on where their salary is paid or the country in which their employment contract was signed.

1.1 How Does Shadow Payroll Work?
Under this arrangement, foreign experts continue receiving their salaries from the parent company through the overseas payroll system. Meanwhile, the Vietnamese entity collects information on salaries, bonuses, allowances, and relevant benefits to determine the obligations arising in Vietnam.

• This data is used to Determine income subject to taxation in Vietnam.
• Calculate and fulfill personal income tax (PIT) obligations.
• Review mandatory social insurance obligations if the employee falls within the applicable coverage.
• Reconcile payroll data between Vietnam and the overseas payroll system.
• Support annual tax finalization and resolve discrepancies at the end of the period.

Therefore, shadow payroll does not mean that employees receive two separate salary payments. It is primarily a mechanism for managing and reporting statutory obligations in Vietnam, while the actual salary may continue to be paid from overseas.

1.2 How Does Tax Residency Affect Shadow Payroll?
An employee's tax residency status can significantly affect how a business determines the PIT obligations of foreign experts. Under current regulations, the assessment is not based solely on the number of days an employee is physically present in Vietnam. It must also take into account residence-related conditions and other relevant provisions.

For foreign experts undertaking long-term assignments or frequently traveling between Vietnam and other countries, HR should monitor their travel schedules from the beginning of the assignment. Determining tax residency status early enables businesses to proactively establish payroll arrangements, forecast costs, and minimize additional tax liabilities arising during tax finalization.

Tax residency status determines the scope of income that must be considered when calculating PIT.

2. When Do Tax and Social Insurance Obligations Arise for Foreign Employees?

Personal income tax and mandatory social insurance are subject to different eligibility criteria. Therefore, businesses should not rely on a single timeline to determine all obligations applicable to foreign experts.

Each type of obligation should be reviewed separately and reassessed whenever the employee's working period, employment contract, or assignment arrangement changes.

2.1 PIT Obligations Should Be Determined at the Beginning of the Assignment
For foreign experts, tax residency status is one of the key factors in determining the scope of taxable income and the applicable PIT calculation method.

Businesses should monitor the employee's physical presence in Vietnam, place of residence, and other relevant conditions rather than relying solely on whether the employee receives their salary in Vietnam or overseas.

In particular, when an assignment extends across multiple tax years, HR and Finance teams need to determine how the applicable regulations should be applied in each year.

Salary, bonuses, allowances, and benefits paid by the parent company must also be reviewed to identify the portion of income relevant to Vietnamese tax obligations.

Monitoring tax residency status helps businesses correctly determine PIT obligations.

Early assessment enables businesses to proactively establish shadow payroll arrangements instead of discovering incomplete income records or unresolved tax residency issues only at the time of annual tax finalization.

2.3 Mandatory Social Insurance Is Subject to Separate Eligibility Conditions
For foreign employees, current mandatory social insurance regulations must be assessed based on their employment relationship in Vietnam.

Under the 2024 Law on Social Insurance, foreign employees are subject to mandatory social insurance if they work under a fixed-term employment contract of at least 12 months with an employer in Vietnam, except for certain exempted cases.

One important case to note is foreign employees transferred internally within an enterprise. Under current guidance, this group is excluded from mandatory social insurance participation if they meet the conditions applicable to intra-company transfers.

Businesses should review each employee's working arrangement and legal documentation before including social insurance obligations in the shadow payroll process.

In addition, effective July 1, 2025, the 2024 Law on Social Insurance and Decree No. 158/2025/ND-CP introduced more specific provisions regarding eligible participants and the salary used as the basis for calculating social insurance contributions for foreign employees.

2.4 Data Discrepancies Can Increase Compliance Costs

When tax or social insurance obligations are not correctly determined from the outset, businesses may need to amend records, fulfill outstanding obligations, and repeat relevant declaration and reconciliation procedures.

For employees receiving compensation from multiple countries, retrieving historical data across several payroll periods can also significantly increase the workload for HR and Finance teams.

This is why businesses should establish a review process at the beginning of each assignment, covering:

• Assignment duration.
• Tax residency status.
• Income sources.
• Employment contracts.
• Assignment and transfer arrangements.
• Social insurance obligations.

When these details are consistently updated throughout the assignment, shadow payroll becomes an effective compliance control tool rather than simply a mechanism for resolving issues at year-end.

Accurate payroll data helps minimize discrepancies and additional costs during tax finalization.

3. Managing Shadow Payroll: From Policy Development to Tax Finalization

Shadow payroll involves more than simply entering data into another payroll system.

To operate effectively, businesses must first establish the tax policy applicable to expatriate employees and determine how tax obligations are allocated between the employer and employee. They can then develop the corresponding calculation, declaration, and reconciliation procedures.

This approach enables HR and Finance teams to maintain control over both actual tax obligations and the overall cost of each assignment.

3.1 Tax Equalization vs. Tax Protection: Which Approach Should Businesses Choose?

Two commonly used approaches to managing tax obligations for expatriate employees are Tax Equalization and Tax Protection.

The main difference lies in how businesses handle the gap between the employee's actual tax liability and their hypothetical tax liability.

Criteria	Tax Equalization	Tax Protection
Objective	Maintain the employee's after-tax income at a level broadly comparable to what they would receive under the home-country tax policy	Ensure that the employee does not bear tax costs exceeding their hypothetical tax liability
Actual tax is higher than hypothetical tax	The employer handles the difference in accordance with company policy	The employer typically covers the excess tax above the protected amount
Actual tax is lower than hypothetical tax	The tax savings are handled according to company policy	The employee typically retains the tax savings
Application	Suitable for assignment policies with strict controls over employees' after-tax income	Offers greater flexibility in protecting employees against tax fluctuations

The choice of approach should align with the company's international mobility policy, assignment agreement, and internal group regulations.

This also provides the basis for Payroll teams to determine how taxes should be calculated and how differences should be handled throughout the employee's assignment in Vietnam.

3.2 Hypothetical Tax and Year-End Reconciliation
Under a Tax Equalization or Tax Protection arrangement, businesses may use hypothetical tax, which refers to an estimated tax amount calculated based on the tax liability the employee would have incurred if they had continued working in their home country.

This hypothetical tax is used to determine the employee's after-tax income and allocate tax responsibilities in accordance with company policy.

Meanwhile, the shadow payroll in Vietnam reflects the actual tax obligations arising locally.

Hypothetical tax serves as the basis for reconciling tax obligations under expatriate assignment policies.

The process may be carried out through the following steps:

Overseas Payroll → Hypothetical Tax Calculation → Vietnam Shadow Payroll → Actual Tax Calculation → Reconciliation → Adjustment of Differences

At the end of the assignment or during tax finalization, businesses need to consolidate all income, calculated tax liabilities, and tax payments to determine any outstanding differences.

The final treatment of these differences depends on the applicable Tax Equalization policy, Tax Protection policy, or other arrangements established by the company.

As payroll data may originate from multiple systems and countries, the reconciliation process requires coordination among HR, Payroll, Finance, and the parent company's HR team.

Aligning data from the beginning helps minimize discrepancies during tax finalization and makes it easier to review and monitor the costs associated with each assignment.

4. The Actual Total Cost of an Expatriate Assignment and When to Outsource Payroll

Personal income tax is only one component of the overall cost of assigning foreign experts to work in Vietnam.

In addition to salary, businesses need to account for social insurance contributions, employee benefits, and other expenses associated with their tax policies.

4.1 Calculating the Actual Total Employment Cost
For example, if an expatriate employee receives a gross salary of VND 50 million per month, the employer's actual employment cost will also include the employer's share of social insurance contributions and additional employee benefits.

Common additional costs include: Housing, children's school fees, and home-leave airfare: The way these expenses are paid or reimbursed may affect the employee's taxable income.
Allowances: Each allowance should be reviewed to determine whether it is subject to PIT.
Overseas income: Applicable Double Taxation Agreements (DTAs) and the conditions for claiming foreign tax credits should be considered.

Therefore, businesses should calculate the Total Employment Cost (TEC) rather than relying solely on the employee's gross salary.

4.2 Managing Shadow Payroll In-House or Outsourcing to a Specialized Provider?
For a single expatriate employee on an approximately one-year assignment with a relatively straightforward income structure, businesses may be able to manage shadow payroll internally using their HR, Payroll, or Finance resources.

However, shadow payroll becomes more complex when there are: Multiple expatriate employees or employees of different nationalities.

• Income paid from both Vietnam and overseas.
• Tax periods extending across multiple years.
• Tax Equalization or Tax Protection policies.
• Multiple employee benefits requiring tax assessment.
• Tax finalization, adjustments, or tax refunds when expatriates complete their assignments.

In such cases, a specialized payroll provider can support businesses with data verification, payroll calculations, tax declarations, reconciliation, and tax finalization.

Outsourcing is a suitable option when the volume and complexity of shadow payroll activities exceed the capacity of internal teams.

Businesses may consider outsourcing when shadow payroll involves multiple complex administrative and compliance requirements.

Conclusion

Shadow payroll helps businesses manage the tax, social insurance, and income reporting obligations of foreign experts working in Vietnam, even when their salaries continue to be paid by an overseas parent company.

As the number of expatriate employees, countries involved, and employee benefit arrangements increases, the process also becomes more complex and requires closer control.

With its experience in Payroll Outsourcing, HR2B can support businesses in standardizing payroll processing, tax declarations, tax finalization, and foreign employee data management.

This helps HR and Finance teams reduce their administrative workload while maintaining better control over statutory obligations and compliance requirements.

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Gen Z in the Workplace in 2026: What Makes Them Willing to Quit After Just a Few Months?

 After just 2–6 months on the job, some Gen Z employees decide to resign even when their salary and benefits are relatively competitive. This trend is becoming increasingly noticeable as the labor market continues to evolve in 2026, with younger workers more willing to seek environments that align with their values, career goals, and quality of life. So, what drives Gen Z to leave so early? Is it a sign of a lack of commitment, or does it indicate that businesses are not yet meeting the expectations of a new generation of workers? Let’s explore the factors behind this trend and the changes businesses may need to make to adapt to the 2026 labor market.

1. Why Is Gen Z Leaving Jobs More Quickly Than Previous Generations?

Unlike previous generations, Gen Z no longer necessarily views long-term tenure with a single company as a measure of career success. Instead, they tend to prioritize jobs that offer opportunities to learn, develop new skills, earn competitive income, and align with their career direction. If they feel that their current role no longer provides meaningful opportunities for growth, Gen Z employees may be more willing to look for a new environment rather than stay solely for the sake of job stability.

Gen Z is changing its perspective on work by placing greater emphasis on personal growth and work-life balance.

In addition, many young employees view the probationary period as a “two-way evaluation” process. It is not only an opportunity for employers to assess a candidate’s capabilities; Gen Z also uses this period to observe the company culture, management style, career advancement opportunities, and working environment. When the actual experience differs significantly from the job description or fails to meet their initial expectations, they may decide to leave after just a few months.

Beyond career-related factors, Gen Z also places a strong emphasis on quality of life. This generation tends to pay greater attention to work-life balance, mental well-being, time for family, and personal interests. As a result, even a job offering an attractive salary may struggle to retain them in the long term if it consistently creates pressure, requires excessive overtime, or negatively affects their well-being.

2. 7 Reasons Why Gen Z Is Willing to Quit After Just a Few Months

Not every Gen Z resignation is driven by impulsiveness or a lack of commitment. In many cases, it is the result of weighing initial expectations against their actual workplace experience. Below are some of the common reasons why many young employees choose to leave after only a few months on the job.

2.1 Salary Does Not Reflect the Actual Workload

Income is always an important factor, but what Gen Z cares about even more is whether their salary is proportionate to the value and workload of the job. When they are required to take on responsibilities beyond the original job description, regularly work overtime, while their income remains unchanged, they may feel that their efforts are not being adequately recognized. This can reduce their motivation and encourage them to seek new career opportunities.

Gen Z expects compensation that reflects their capabilities and contributions at work.

2.2 A Toxic Work Environment

A workplace filled with drama, unhealthy competition, or a lack of respect can quickly drive Gen Z employees to leave. In addition, overly controlling management styles (micromanagement), constant monitoring of every detail, or a lack of empowerment can make young employees feel pressured and limit their sense of autonomy at work. For Gen Z, a positive work environment can sometimes be even more important than salary.

2.3 Lack of Career Development Opportunities

Gen Z wants to continuously learn and grow. If, after a few months on the job, they receive little training, have no opportunities to take on new projects, or cannot see a clear career progression path, they may quickly lose motivation. Rather than accepting stagnation, many choose to move to another company in search of better opportunities.

2.4 Managers Lack People Management Skills

A good manager does more than simply assign tasks—they also know how to listen, provide guidance, and motivate their employees. Conversely, if a manager frequently criticizes employees, provides little constructive feedback, or shows little interest in their development, Gen Z employees may find it difficult to feel committed to the organization. As a result, the relationship with their direct manager becomes one of the key factors influencing their decision to leave.

Leadership style has a direct impact on the work experience of young employees.

2.5 The Actual Job Is Completely Different from the Job Description

Many Gen Z candidates find themselves in situations where the actual job is completely different from what was described during recruitment. From job responsibilities and working hours to benefits and compensation, various aspects may not match the initial commitments.

This lack of transparency can cause them to lose trust in the company and make them more likely to leave as soon as another opportunity arises.

2.6 Not Being Recognized Despite Performing Well

Gen Z values recognition and positive feedback from employers. A timely compliment, a salary increase, bonus, or the opportunity to take on important projects can all help them feel that their efforts are meaningful and appreciated.

On the other hand, when employees perform well but receive little or no recognition, young professionals may feel undervalued and gradually lose their motivation to contribute.

2.7 More Attractive Opportunities in the Job Market

The 2026 labor market is offering more career options than ever before. Remote work, freelancing, startups, and emerging careers related to AI are creating new opportunities with attractive income levels and greater flexibility.

When they find a job that offers a better fit in terms of work environment, income, or career development, Gen Z is willing to make a change to optimize their career path.

The labor market is expanding, offering more career options such as remote work, freelancing, and AI-related professions.

3. Is Gen Z’s High Turnover Rate Really a Bad Thing?

Gen Z employees who leave their jobs after only a few months are often perceived as lacking commitment or perseverance. However, from an employee’s perspective, leaving a job can be a way to find a work environment that better aligns with their abilities, career goals, and quality of life. They are willing to move on if a job does not provide opportunities for growth or negatively affects their mental well-being.

For businesses, early employee turnover increases recruitment and training costs and can affect operational efficiency. When employees leave before they have had the opportunity to create meaningful value, companies not only lose the time and resources invested in them but may also face the risk of resource shortages.

The Gen Z turnover trend reflects a shift in expectations between employees and employers.

In reality, the issue does not lie entirely with Gen Z, but rather with the mismatch between employees’ expectations and the workplace environment. To retain young talent, businesses need to be transparent throughout the recruitment process, build a positive workplace culture, and provide clear career development paths. At the same time, Gen Z employees should also carefully consider each decision to resign in order to build a sustainable career.

4. What Can Businesses Do to Retain Gen Z in 2026?

As Gen Z becomes a major part of the workforce, retaining talent is no longer solely about salary and benefits. This generation places greater value on transparency, career development opportunities, and a positive work environment. To build a committed and long-term workforce, businesses should focus on the following factors:

• Be transparent from the recruitment stage: Provide clear information about job responsibilities, salary, benefits, KPIs, and career development opportunities to avoid a gap between expectations and reality.
• Provide structured training during the first 90 days: Develop onboarding, guidance, and support programs to help new employees quickly adapt and perform to their full potential.
• Build a feedback culture rather than focusing solely on performance reviews: Regularly listen to employees, recognize their contributions, and provide constructive feedback to maintain motivation and engagement.
• Provide a clear career development path: Establish clear goals, promotion criteria, and learning opportunities so employees can see their long-term career direction within the organization.
• Offer flexibility in working hours and arrangements: Adopt models such as hybrid working or flexible work arrangements where appropriate, helping employees maintain a better work-life balance.

5. When Is It Reasonable for Young Professionals to Leave Their Jobs?

Quitting a job is not always a negative decision, but it is a choice that should be carefully considered rather than made based on temporary emotions. Young professionals may consider leaving when their job no longer provides meaningful opportunities for growth, when the workplace is toxic or lacks respect, or when it has a serious impact on their mental well-being. When these issues persist and cannot be improved, seeking a new opportunity may be an appropriate path forward.

However, not every initial difficulty is a reason to resign immediately. During the first few months, it is quite common to feel unfamiliar with the job, experience pressure while adapting, or face new challenges. Before making a decision, young professionals should take time to understand the role, communicate with their managers, and assess whether the issues can be addressed or resolved.

The decision to resign should be based on careful consideration of career goals and the work environment.

Before submitting a resignation letter, ask yourself some important questions: Have I genuinely tried hard enough? Can I communicate with my manager to improve the situation? What will I do next after leaving my job? Do I have enough financial resources to support myself? Is this decision aligned with my long-term career goals? Taking the time to carefully consider these questions can make the transition to a new job more proactive and effective.

6. How Will Recruitment Trends in 2026 Change as Gen Z Becomes a Major Part of the Workforce?

As Gen Z gradually becomes a major part of the workforce, businesses can no longer rely solely on traditional recruitment and people management approaches. Instead of focusing only on salary, companies need to pay greater attention to Employee Experience, workplace culture, and long-term career development. These factors will play an important role in determining a company’s ability to attract and retain talent in 2026.

Recruitment trends in 2026 will focus on employee experience, technology, and strategic workforce development.

Technology and artificial intelligence (AI) will also continue to transform the way businesses search for, assess, and manage talent. Flexible working arrangements such as Hybrid Working are becoming increasingly common, while soft skills, adaptability, and innovative thinking are gaining greater importance beyond formal qualifications alone. At the same time, investing in internal training and development can become a competitive advantage, helping businesses build a more stable and capable workforce.

To adapt to changes in the labor market, businesses need a comprehensive HR strategy covering recruitment, talent management, and HR operations optimization. With experience in HR services, executive search, staffing outsourcing, and payroll management, HR2B works alongside businesses to build the right workforce, improve HR management effectiveness, and prepare for emerging workforce trends in 2026.

Gen Z employees leaving their jobs after only a few months is not simply a sign of a lack of perseverance. It also reflects a shift in the career mindset of the new generation of workers. They care not only about salary but also about workplace culture, career development opportunities, recognition, and work-life balance. To retain talent in 2026, businesses need to adapt their approach to recruitment, people management, and internal culture, as the alignment between employees and organizations will be a key factor in determining long-term commitment.

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How AI Is Changing the Role of Managers: Are Human Skills the New Competitive Advantage?

 AI is changing the way businesses operate by automating many traditional management tasks and enabling faster decision-making. In this context, the role of managers is shifting from supervising work to leading people. As AI continues to take on more operational tasks, will operational skills remain the core competency, or will human skills become the competitive advantage that technology cannot replace?

1. How Is AI Changing the Role of Managers?

The development of AI is not only transforming how businesses operate but also changing the role of management teams. As many administrative and monitoring tasks become automated, managers need to devote more time to leading and developing people.

In the past, managers typically spent a significant amount of time compiling reports, tracking KPIs, monitoring progress, and controlling operational processes. Today, AI can support many of these tasks quickly and accurately through data analytics tools, automated reporting, and intelligent management systems. This significantly reduces the administrative workload while allowing managers to focus more on strategic activities rather than manual supervision.

Managers in the AI era are shifting from operational supervision to people leadership.

As technology takes on more operational responsibilities, the role of managers is shifting from controlling work to leading teams. Instead of simply monitoring performance and assigning tasks, managers need to focus on setting direction, connecting team members, and developing employee capabilities. In the modern workplace, effectiveness no longer comes primarily from close supervision, but from engagement, collaboration, and the ability to unlock each individual’s potential. These are areas where AI remains difficult to replace in the near future.

2. Why Are Human Skills Becoming a Competitive Advantage for Managers ?

As AI becomes increasingly capable of handling data, processes, and analysis, human-centered skills are becoming key differentiators for managers. These are also capabilities that are less likely to be replaced by technology in the near future.

2.1 AI Can Process Data but Cannot Understand Emotions

AI can analyze behavior, measure performance, and generate data-based forecasts, but it cannot truly understand the emotions, motivations, or personal pressures that individual employees may be experiencing. In the modern workplace, employees need more than work-related guidance; they also need to be heard, understood, and supported when facing challenges.

Therefore, emotional intelligence (EQ) is becoming one of the most important capabilities for managers, helping them build lasting relationships and create a positive work environment.

2.2 Team Engagement Is Something AI Cannot Replace

An effective team depends not only on processes and technology but also on the level of connection among its members. Managers play an important role in building trust, motivating employees, and fostering collaboration within the organization.

They are also responsible for resolving conflicts and connecting individuals with different goals and perspectives so that they can work toward shared outcomes. These responsibilities require human understanding and person-to-person interaction, making them difficult for AI to replace.

2.3 Change Management Requires a Human Element

AI is accelerating digital transformation, bringing continuous changes to how people work, the processes they follow, and the skills they need. However, not every employee is ready to embrace change. Some may be concerned about adapting to new technologies or uncertain about how their roles may evolve.

In this context, managers become an important bridge between the business and its employees, helping teams understand the objectives behind change, reduce concerns, and gradually adapt to the new working environment.

Managers play an important role in helping employees adapt to changes driven by AI.

3. 5 Human Skills Managers Need to Prioritize in the AI Era

As AI increasingly supports operational tasks and data analysis, the value of managers lies less in their ability to control processes and more in their ability to lead people. To succeed in the new working environment, managers need to focus on developing skills that technology is less capable of replacing.

3.1 Emotional Intelligence (EQ)

Emotional intelligence is the ability to recognize, understand, and manage one’s own emotions as well as those of others. In an increasingly demanding and dynamic workplace, managers with strong EQ can build trust, create a sense of psychological safety for employees, and handle sensitive situations more effectively.

In addition, understanding employees’ emotions and needs enables managers to adopt the right approach for each individual, strengthening engagement and improving overall team performance.

3.2 Communication and Active Listening Skills

Regardless of how advanced technology becomes, communication remains the foundation of an effective organization. Managers need to communicate goals, strategies, and expectations clearly to ensure that everyone understands and works toward the same objectives.

Effective managers must also know how to listen. Encouraging two-way communication helps employees feel respected and become more willing to share ideas and contribute initiatives. An open working environment creates better conditions for collaboration and innovation to thrive.

3.3 Coaching Mindset

In the AI era, the role of managers is not limited to assigning tasks and evaluating results. They also need to support their teams’ development. A coaching mindset enables managers to focus on unlocking employees’ potential rather than simply monitoring their performance.

Instead of providing every answer, managers can use guiding questions to help employees find their own solutions, strengthen their thinking skills, and become more proactive. This not only develops individual capabilities but also builds teams that are better prepared to adapt to future changes.

3.4 Leadership in a Changing Environment

Rapid technological development and market volatility mean that managers increasingly need to make decisions under uncertain conditions. The ability to assess situations, provide appropriate direction, and act promptly has become an important capability for modern leaders.

Managers also need to maintain team morale during periods of continuous change. Effective leadership involves not only guiding the organization through challenges but also motivating employees to adapt to new demands.

Leadership in a changing environment requires flexibility and decisiveness.

3.5 Continuous Learning Mindset

AI is changing the way people work at an unprecedented pace, causing knowledge and skills to become outdated more quickly. Managers therefore need to maintain a continuous learning mindset to keep up with new technologies, management trends, and modern leadership approaches.

More importantly, managers should become role models for continuous learning within the organization. When leaders demonstrate a willingness to learn and adapt, employees are also encouraged to develop themselves, helping build a sustainable learning culture across the business.

4. Are Operational Skills Still Important?

Operational skills remain an essential foundation for every manager. Understanding business processes, how the organization operates, and key performance indicators is critical to making sound decisions. However, as AI and automation continue to advance, operational skills are becoming less of a differentiating factor because many repetitive operational tasks can now be supported or partially replaced by technology.

The combination of AI and human capabilities in modern business operations.

Instead, the core value lies in the ability to combine technology with human skills. Modern managers need to know how to leverage AI to process data quickly while using their judgment, experience, and leadership capabilities to interpret information within the real-world context. Balancing operational efficiency with employee experience enables businesses to improve performance while maintaining employee engagement and sustainable development.

5. What Can Businesses Do to Develop Managers in the AI Era?

As AI changes the way businesses operate and make decisions, the role of managers is also evolving significantly. Managers need more than professional expertise and technology knowledge; they must also be able to lead people in a rapidly changing environment.

Therefore, businesses need to develop a comprehensive management development strategy that strengthens both technological capabilities and leadership and people-management skills.

Develop Leadership Skills Alongside Technology Skills

Businesses should not focus solely on training managers in AI, data, or digital transformation. They should simultaneously develop leadership capabilities across their management teams. As technology increasingly supports operational tasks, people’s roles are gradually shifting toward providing direction, leading teams, and creating influence.

Skills such as emotional intelligence (EQ), employee coaching, effective communication, and change management are therefore particularly important. These capabilities help managers not only understand systems but also inspire employees, resolve conflicts, and lead teams through continuous changes driven by AI and the market.

Businesses need to build management teams that are ready for the AI era.

Build a Culture of Continuous Learning

In a rapidly changing technological environment, managers’ knowledge and skills also need to be continuously updated. Businesses should build a culture of continuous learning where development is not limited to periodic training programs but becomes part of everyday work.

This can be achieved by encouraging managers to proactively stay updated on emerging trends, participate in specialized training programs, and learn directly from real-world projects. When learning is connected to practical experience, managers can apply new knowledge more effectively and improve their ability to lead their teams.

Evaluate Managers Based on Their Ability to Develop People

In the AI era, evaluating managers cannot focus solely on business metrics such as revenue or operational performance. Businesses should broaden their perspective and place greater emphasis on managers’ ability to develop people.

An effective manager is not only someone who achieves business objectives but also someone who can retain talent, develop team capabilities, and build sustainable engagement. The ability to create a positive workplace where employees can learn and grow will become an important measure of leadership quality in the AI era.

HR2B Partners with Businesses to Develop Leadership Capabilities in the AI Era

As AI reshapes the way businesses operate, manage people, and make decisions, the role of leaders is becoming increasingly important. Modern managers need not only an understanding of technology and data but also the ability to lead people, motivate teams, and adapt quickly to change. This presents a significant challenge for businesses seeking to build management teams that are ready for the future.

AI is significantly changing how businesses manage their workforce, from recruitment and performance evaluation to talent development. This requires managers to combine technological capabilities to effectively leverage data with people-leadership skills to make appropriate decisions in different contexts. This combination can help businesses improve operational efficiency while enhancing employee experience and engagement.

Throughout this journey, HR2B serves as a trusted partner, supporting businesses through comprehensive recruitment, staffing, and HR consulting solutions. With extensive experience in the HR industry, HR2B helps businesses build and develop leadership teams that meet the demands of the AI era—where technological capabilities and human skills need to be developed in parallel to create sustainable competitive advantages.

In the AI era, a manager’s competitive advantage does not lie in controlling more tasks than machines, but in the ability to inspire, develop people, and lead organizations through change. As technology becomes increasingly intelligent, human-centered skills become even more valuable and difficult to replace. 

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Multi-Skilled Employees on the Rise: The New Staffing Trend After Cost-Cutting

After a period of budget tightening and cost reduction, many businesses are restructuring their workforce toward leaner models while maintaining operational efficiency. In this context, multi-skilled employees are becoming a preferred choice, as they can take on multiple roles, adapt flexibly to change, and help businesses optimize their resources. The new staffing trend is no longer focused solely on headcount, but increasingly on quality, learning agility, and cross-functional capabilities—paving the way for a more adaptable workforce strategy in today’s rapidly changing business environment.

1. The Labor Market Is Changing After a Period of Cost-Cutting

After a period of focusing on cost reduction in response to economic uncertainties, the labor market is seeing significant changes in how businesses build and utilize their workforce. While workforce reduction was previously viewed as a quick solution to ease financial pressure, businesses are now recognizing that a more important challenge is to maximize the productivity and performance of their existing workforce.

Rather than simply reducing headcount, many organizations are seeking to improve productivity by hiring and developing employees who can take on a wider range of responsibilities. Professionals with diverse skill sets, the ability to collaborate across departments, and the flexibility to adapt to different roles within the same project are increasingly in demand. This approach enables businesses to maintain operational efficiency even with a leaner workforce.

Businesses are shifting from a mindset of workforce reduction to optimizing the efficiency of their existing resources.

In addition, the pace of market change is making workforce needs increasingly difficult to predict. Business cycles are becoming shorter, project scopes are constantly changing, and new skill requirements are emerging rapidly. In this context, an overly fixed workforce can result in unnecessary costs or make it difficult for businesses to scale operations quickly when needed.

To adapt to a more flexible business environment, many companies are turning to modern staffing models that allow them to adjust workforce capacity based on actual business needs. This trend not only helps businesses manage costs more effectively but also enables them to quickly access the right talent, strengthening their competitiveness in an ever-changing labor market.

2. What Are Multi-Skilled Employees and Why Are They Becoming the New Staffing Trend?

As businesses prioritize resource optimization, multi-skilled employees are becoming increasingly sought after. They are seen as an effective solution for improving productivity without requiring companies to significantly expand their workforce.

2.1 Definition of Multi-Skilled Employees in the Modern Workplace

Multi-skilled employees are not simply people who can handle multiple tasks at the same time. They are professionals with strong expertise in their primary field, complemented by additional skills that enable them to meet a variety of job requirements. They can flexibly shift between roles based on project objectives or the operational needs of the business.

Multi-skilled employees combine strong expertise in their primary field with complementary skills to meet a wide range of job requirements.

Examples:

• Sales professionals with customer data analysis skills.
• Operations staff with technology and process automation skills.
• Administrative staff with the ability to manage digital systems and processes.

2.2 5 Key Capabilities of Multi-Skilled Employees

Not everyone who handles multiple tasks can be considered a multi-skilled employee. The key difference lies in their ability to adapt, learn, and create value across different roles within an organization.

• Adaptability: Quickly take on new responsibilities and flexibly adjust to project or business requirements.
• Problem-solving skills: Proactively analyze situations, identify root causes, and propose solutions rather than simply carrying out assigned tasks.
• Technology skills: Proficiently use digital tools, management software, and technology applications to improve work efficiency.
• Cross-functional collaboration: Communicate and work effectively with different departments, helping ensure smooth and seamless operations.
• Continuous learning mindset: Continuously update their knowledge and skills to keep pace with changes in the labor market and evolving business needs.

3. Why Are Businesses Prioritizing Flexible Staffing Models?

In a constantly changing market, businesses need a workforce model that is both flexible and cost-efficient. This is why flexible staffing is becoming an increasingly popular choice among organizations.

3.1 Controlling Costs While Maintaining Workforce Quality

Flexible staffing enables businesses to access the right talent without significantly expanding their permanent workforce. This helps reduce the burden associated with recruitment, training, and administrative management while allowing companies to optimize their workforce budget according to each stage of business development.

Staffing outsourcing models also allow businesses to proactively add short-term or long-term employees based on operational needs, ensuring that the right resources are available when required.

3.2 Responding Quickly to Project-Based Workforce Needs

Workforce requirements can change frequently when businesses launch new projects, expand into new markets, enter peak seasons, or need temporary replacements. Flexible staffing enables businesses to quickly add suitable resources without going through a lengthy recruitment process. This helps shorten implementation time and ensure business operations continue without disruption.

Businesses can quickly add staff to support projects or peak business periods.

3.3 Focusing Resources on Core Business Activities

When tasks such as recruitment, employee records management, payroll, and HR operations are supported by a staffing service provider, businesses can significantly reduce their administrative workload. This gives managers and leaders more time to focus on strategic objectives, market development, and strengthening competitiveness, rather than dealing with day-to-day HR matters.

4. Industries Driving the Multi-Skilled Workforce Trend

The multi-skilled workforce trend is not limited to technology companies but is expanding across a wide range of industries. In particular, sectors experiencing rapid change or fluctuating workforce demands are leading the adoption of this model.

4.1 Technology & Digital Transformation

Digital transformation is changing recruitment requirements in the technology sector. Businesses are not only looking for professionals with deep expertise but are also increasingly prioritizing employees who understand data, digital tools, and modern operational processes. As a result, hybrid roles such as technology sales professionals, data-driven marketing specialists, and technology project managers are becoming increasingly common.

4.2 Retail – Services – Operations

In the retail and service sectors, workforce needs often fluctuate depending on seasonality, promotional campaigns, or business expansion plans. As a result, businesses are increasingly looking for employees who can take on multiple responsibilities, such as sales, customer service, operations management, or logistics support. This flexibility enables businesses to maintain operational efficiency without significantly increasing headcount.

Flexible staffing enables the retail and service sectors to respond quickly to constantly changing market demands.

4.3 Manufacturing & Supply Chain

The manufacturing and supply chain sectors constantly face the challenge of balancing productivity with operating costs. As production volumes fluctuate in response to market demand, businesses need to adjust their workforce quickly to avoid staff shortages or excess capacity. Flexible staffing solutions help ensure the right workforce is available at each stage while enhancing the business’s ability to adapt to supply chain disruptions and market fluctuations.

5. How Should Businesses Prepare for the Multi-Skilled Workforce Trend?

The rise of multi-skilled employees is changing how businesses build and manage their workforce. To make effective use of this model, companies need an appropriate workforce strategy rather than focusing solely on short-term hiring needs.

5.1 Build a Long-Term Workforce Planning Strategy

The first step is to develop a workforce plan based on business objectives and future growth plans. Businesses need to clearly identify current workforce requirements, forecast future needs, and assess existing skill gaps within the organization. Proactive workforce planning enables companies to prepare the right resources and avoid workforce shortages or excess capacity when market conditions change.

5.2 Evaluate Capabilities Rather Than Just Job Titles

In the modern workplace, an employee’s value is not determined solely by their job title but also by their ability to contribute across different areas of the business. An employee can create greater value when they possess a diverse skill set and strong adaptability. Therefore, businesses should shift from a “one person – one role” mindset toward a “one person – multiple capabilities” approach, focusing on actual competencies rather than relying solely on traditional job descriptions.

Modern businesses prioritize skill sets and adaptability over job titles.

5.3 Combining Internal Employees with Staffing Outsourcing

To ensure stability while maintaining flexibility, many businesses are combining their internal workforce with staffing outsourcing resources. Core employees take on strategic and managerial positions and contribute to the company’s long-term development. Meanwhile, staffing resources are utilized to meet short-term needs, support specialized projects, or manage sudden periods of business growth. This model helps businesses optimize costs, proactively manage workforce capacity, and build a balanced operating structure that can adapt to market fluctuations.

6. Staffing Outsourcing – A Solution for Building a Flexible Workforce

As businesses increasingly focus on cost optimization and operational efficiency, staffing outsourcing is no longer simply a service for providing manpower. It has become a comprehensive workforce management solution that enables businesses to quickly access suitable talent while maintaining flexibility in response to changing market conditions.

With more than 20 years of experience in the HR industry, HR2B provides Staffing Outsourcing services that help businesses manage their workforce needs from end to end. In addition to supporting candidate sourcing and selection, HR2B also assists with onboarding, employee records management, payroll, legal compliance, and day-to-day HR operations. This allows businesses to significantly reduce their administrative workload and focus their resources on core business objectives.

HR2B helps businesses build a flexible workforce and optimize operating costs through Staffing Outsourcing.

In particular, HR2B’s Staffing Outsourcing model enables businesses to proactively add employees based on specific projects, growth stages, or short-term workforce needs without expanding their permanent workforce. This solution is well suited to organizations seeking to balance cost control, speed of deployment, and workforce quality in today’s rapidly changing business environment.

Multi-skilled employees are becoming an increasingly important workforce trend as businesses seek to optimize costs while maintaining growth and competitiveness. Rather than expanding their permanent workforce, many organizations are turning to flexible staffing models to quickly access the right resources at different stages of their business. With its comprehensive Staffing Outsourcing services, HR2B helps businesses build a flexible workforce, reduce the burden of HR administration, and focus their resources on long-term growth objectives.

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