By Assoc Prof Dr Crendy Tan Yen Teng

Who is Generation Z and why they matter

Generation Z generally refers to individuals born between 1997 and 2012, making them approximately 13 to 28 years old today.

In Malaysia, Gen Z now constitutes a large and rapidly growing segment of the workforce, including fresh graduates, early-career professionals, and interns.

According to a WTW Survey in 2024, Millennials and Gen Z together are projected to make up more than 70 per cent of Malaysia’s workforce in 2025, highlighting just how significant this cohort is to the national labour market.

Their increasing presence means that understanding how they think, feel, and work is no longer optional, but it is essential for employer readiness, talent retention, and national workforce development.

Yet, Gen Z is often viewed through a lens of criticism rather than understanding, with common workplace narratives describing them as “easily stressed”, “too sensitive”, “less loyal”, or “quick to resign”.

However, evidence suggests a different perspective.

Randstad Malaysia’s 2022 Employer Brand Research found that 29 per cent of Gen Z respondents aged 18 to 25 changed jobs specifically to improve their work-life balance, reflecting a deliberate pursuit of healthier and more sustainable working conditions rather than a lack of commitment.

While resignation rates among younger employees are indeed higher than in previous generations, these decisions are often driven by structural and wellbeing-related factors, not just poor attitudes.

Misconceptions versus psychological realities

From a psychological and counselling perspective, many of the behaviours attributed to Gen Z reflect developmental, emotional, and societal influences, rather than poor work ethic.

Gen Z grew up during periods of economic uncertainty, global health crises, rapid technological change, and constant digital connectivity.

They entered adulthood in a world where job security feels fragile, social comparison is relentless, and emotional wellbeing is openly discussed, but not always adequately supported.

Research and organisational data consistently show that Gen Z reports higher levels of work-related stress, emotional exhaustion, and feelings of being unheard, particularly in environments that prioritise performance over psychological safety.

This is reflected in 2024 Wellness at Work Report by global employment authority, Employment Hero, which found that 64 per cent of Gen Z employees experienced burnout.

When these emotional pressures are unaddressed, resignation becomes a coping strategy rather than a sign of disengagement.

This is also why they increasingly seek companies with wellness initiatives.

Randstad Malaysia’s 2022 Employer Brand Research shows that 54 per cent of Gen Z respondents want their employers to provide wellness and mental health benefits, highlighting the value they place on psychologically supportive workplaces.

Emotional regulation: The missing link

A key psychological factor shaping Gen Z’s workplace behaviour is emotional regulation.

The ability to recognise emotions, manage emotional reactions, and respond constructively under stress.

Gen Z tends to have high emotional awareness; they can articulate how they feel and are more open about mental health concerns than previous generations. However, awareness alone is not sufficient.

Without strong emotional regulation skills, emotions such as frustration, anxiety, or feeling undervalued can quickly translate into withdrawal, conflict, or resignation.

This is often misinterpreted by employers as low resilience.

Emotional regulation is a learned skill, not an innate trait and many young people have had limited opportunities to develop it systematically.

From emotional regulation to empathy and leadership

Emotional regulation serves as the pathway from personal emotional awareness to genuine empathy for others.

When individuals can manage their own emotional responses, they are better able to understand different perspectives, accept feedback, navigate conflict, and collaborate across generations.

For Gen Z, mastering this skill transforms emotions from obstacles into strengths.

This is where Gen Z’s value becomes evident.

They bring strong alignment with current societal needs, including empathy, inclusivity, ethical leadership, adaptability, and purpose-driven work.

These qualities are highly relevant in today’s organisations, which increasingly demand collaboration, emotional intelligence, and human-centred leadership rather than rigid hierarchies.

Implications for employers and national talent development

From my experience as a psychologist and university academic involved in research and professional training, I consistently observe that students who are guided in emotional regulation transition more successfully into professional roles.

They demonstrate healthier relationships, greater resilience, and leadership that balances intellect with compassion.

For Malaysia, bridging generational gaps requires moving beyond stereotypes and investing in emotional competence as a core workforce skill.

Supporting Gen Z to regulate emotions and develop empathy does not lower professional standards, opposite, it strengthens them.

For employers and policymakers alike, recognising the psychological realities shaping Gen Z is key to building a future-ready, empathetic, and sustainable workforce.

-- BERNAMA

Assoc Prof Dr Crendy Tan Yen Teng is Acting Dean, Faculty of Psychology and Social Sciences, University of Cyberjaya.