Wellbeing, Pay and Career Advancement Opportunities Prolong Workplace Tensions for Southeast Asian (SEA) Employees, Including Indonesia

• Of a total of 250 respondents, 46% of Indonesian workers (vs. 39% of Southeast Asian workers) are likely to quit their jobs in the next 12 months, citing better overall wellbeing programs and career advancement as the primary reasons.

• As many as 45% of Indonesian employees prefer a work-from-anywhere or remote working system, and only come to the office on certain days.

• Southeast Asian (SEA) employers are supportive of their employees adopting a fully remote or hybrid work arrangement. 

Jakarta, 13 December 2023. According to the EY 2023 Work Reimagined Survey, nearly half (46%) of Indonesian employees (vs. 39% of Southeast Asian (SEA) employees) are likely to quit their jobs in the next 12 months. The top reasons for quitting better overall wellbeing programs, more competitive compensation packages, and better job or career advancement. Nominal wage remains the most important concern for 33% of Indonesian workers (39% in SEA), followed by equality in occupations requiring a set location or schedule (31% in Indonesia vs. 30% in SEA), and workplace flexibility (22% in Indonesia vs. 26% in SEA).

This is according to the EY 2023 Work Reimagined Survey, which canvassed the views of 17,050 workers and 1,575 companies from 22 countries and 25 industry sectors globally. The survey includes 1,050 workers and 200 businesses from SEA, including 250 workers and 50 businesses from Indonesia.

While 36% of companies in SEA prioritise compensations, only 22% of Indonesian employers do. Additionally, equity in occupations with fixed locations or schedules (42% in Indonesia, 32% in SEA) and workplace flexibility (32% in Indonesia, 32% in SEA) are on the agendas of employers. This demonstrates that workers and businesses in SEA have generally comparable perspectives on a variety of critical issues.

The survey also finds a disconnect between employee and employer expectations in SEA. Almost two-thirds of employers (Indonesia 48%, SEA 62%) believe that slower economic growth reduces employees’ likelihood to quit. However, only 55% of SEA employees (Indonesia 54%) agree, leaving employers at risk of underestimating the continued fluidity of the labor market. 

Samir Bedi, EY Asean Workforce Advisory Leader, says:

“Even with the current weaker economic outlook, more than a third of SEA employees are still looking to change jobs in search of better wellbeing programs that fit their post-pandemic life and priorities, as well as better pay to keep up with inflation. Employers need to preserve their critical talent by co-creating the future of the organization with strategies that reflect employees’ priorities and ultimately build trust and increase retention.”

Indonesia Workforce Outlook

While new patterns of work have emerged because of the COVID-19 pandemic, when it comes to balance of power in the workplace, respondents in Indonesia view employers as still having more influence and control than employees over issues like rewards, retention and ways of working. Prior to pandemic, 48% of Indonesia respondents (SEA 55%) agreed that the balance of power in the workplace was in the employer’s favor. This increased slightly to 50% in 2022 reduced to 48% today (SEA 50%), revealing that fewer respondents in Indonesia and SEA believe employers have a greater sphere of influence in the workplace today than before the pandemic.

Lusi Lubis, EY Indonesia Consulting Partner, says: 

“To better understand employee expectations amid economic uncertainty, employers need to increase open communication so that employees feel comfortable expressing their concerns about the company and their professional careers.” 

Years of disruption have pushed employers and employees into distinctly different worlds of priorities, pressures, and prospects. Many employees are driven by a need for better total rewards packages amid high inflation and cost of living, by their desire for better well-being, and by a need to have the skills to succeed in a world of continued work flexibility. 

According to the latest EY 2023 Work Reimagined Survey, 46% of Indonesian employees are likely to quit their jobs in the next 12 months, citing wellbeing programs and career advancement as the primary reasons. Seeing this number, leaders should recognize they will likely lose their best talents in the upcoming months. Therefore, they must be able to take action by enabling organizations to benefit from the most recent technological advancements while maintaining an agile, resilient, and people-centric organizational culture.

Lusi, adds: 

“One of the most important things is creating a positive and motivating work environment that involves developing a culture where employees feel valued, supported and inspired to do their best. Moreover, employers should not underestimate the importance of trust and empathy to drive better results. When we ask our employee, ensuring transparent leadership and sharing information about steps taken to reassure employees of the company's commitment to their well-being is a way to build trust so it can be move from “me” becomes a “we” mindset that is created together.”

On the other hand, Indonesian employees cite compensation levels and increases as their main concern with 33%, followed by maintaining fairness and equity with 31%, and retaining talent 26%. 

Lusi, says: 

“To balance business needs and employee engagement, organizations should prioritize transparent financial communication, ensure fair and competitive compensation. Compensation and benefit are not only about the monthly paycheck. Ensuring certain compensation and implementing strategies that include non-monetary benefits such as work flexibility, work-life balance, and recognition programs will also promote a positive work culture. Other than that, acknowledging achievement, encouraging professional development and being responsive to employee feedback are also necessary to fostering an engaging work environment while ensuring business needs are met.”

Preference for Flexibility in Work Arrangement

When examining whether workplaces experience a remote versus office stalemate, the survey found that over half of SEA employers are supportive of their employees adopting a fully remote work arrangement or coming to the office no more than once a week. 

Flexibility is now a baseline expectation, with only 8% of SEA knowledge workers willing to work fully in the office and and 17% in Indonesia are willing to work completely in the office.

Also found in the survey, there are 27% Indonesian employees wanting to work from anywhere and 18% prefer to work fully remote. Organizations should assess which roles can be most efficiently done remotely, and build touchpoints, technologies, and processes to customize hybrid work, learning and culture for this new normal.

Lusi says:

“Flexibility on working method in an organization depends on its industry/sector, employee’s role requirement, and organization needs. To respond to the evolving desire in this working flexibility needs, organizations need to adopt a flexible yet balanced approach. Approach such as clear communication with employee is necessary to understand the internal preferences and challenges.”

Bedi says: 

“SEA employers have evidently picked the lessons learned from the pandemic when it comes to redefining the future of work and transforming the office space. In supporting the shift to remote working and encouraging hybrid working arrangements, employers are also reaping the benefits of higher productivity levels. At the same time, as the office remains a place for employees to deliver workforce outcomes, employers should not ignore its role and should continue to make improvements, so that employees can still look forward to coming in, no matter the number of days.”  

Generative AI in the New Era of Work

While generative artificial intelligence’s (GenAI) potential is still being realized, there is growing momentum and a generally positive outlook on how the technology will impact new ways of working. 64% of SEA employees anticipate GenAI will improve working flexibility and 71% are currently using or planning to use GenAI within the next 12 months. For SEA, employers mirror these sentiments, with 86% expecting GenAI to enhance working flexibility, and 94% currently using or planning to use the technology within the next year.

Employees in Indonesia are particularly enthusiastic about Generative AI (GenAI); 44% of employees currently use GenAI, and 38% plan to use it within the next year. Equivalent to employees, employers also view GenAI positively. This is supported by a survey, which found that 61% of Indonesian employers think GenAI improves employee productivity.

Lusi says: 

“AI will be a supporting aspect to increase the innovation in work, its presence will become a new opportunity namely in the administrative, analytic, and creative aspects of the job. With the rapid development of AI technology, industry needs strong and proficient human resources. To answer the challenges of the AI emergence, optimally utilize the AI, and become the pilot in the AI deployment, it is necessary to increase human resource capabilities and skills considering that the presence of AI can change the description or pattern of the working world”. 

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Notes to editors: 

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About the EY 2023 Work Reimagined Survey 

The survey was conducted May 2023 through July 2023 and received responses from 18,625 total respondents, 17,050 employees and 1,575 employers, across 22 countries and 25 industry sectors. 

The survey was conducted using a third-party panel and targeted employers with a range of 500 to 15,000 employees.