1.1 Research Background Today,in order to be a part of a global competition in the context of Internationalbusiness, an organization has to put an effort which mostly focused on humanresources management practices (Burma, 2014) and put an investment in people asone of organization’s strategy and valuable asset to maintain competitiveadvantage (Kwon, 2009). Recently, one of challenge that organization needs tomanage is employee engagement. Employee engagement as a vitality in talentmanagement helps organizations with their branding inside and outside alsoreputation among employees can be made (Kaliannan and Adjovu, 2015).
Employeeengagement has been focused on organizational commitment and role performancealso the productivity of the business (Moore, 2014). Employees who are engaged show an emotionalconnection to their organization (Markos and Sridevi, 2010), feel enthusiasticand more productive with their work (Seijts and Crim, 2006) and willing to staylonger (Kruse, 2012). Hence, an organization should take this practice into anessential consideration how to invest in people and to make it engageemotionally could give benefit positively to reach organization’s goal.
However, inIndonesia, it seems employee engagement might not be in top list priority fororganizations. It can be seen in the research that Gallup (2016) has conductedrecently, it says in Indonesia, the number of employee engagement is low with8% engaged, 77% not engaged and 15% actively disengaged also this number is thelowest among Southeast Asia nations. Gallup(2016) mentions one of the factors that likely have an impact on this lownumber in Indonesia is the rise of gen Y or some familiar with the millennialgeneration. Fifty percent of the population in Indonesia is mostly younger than30 which means an organization today is facing younger generation to be itsemployees and Gallup (2016) believes that the concept of engaging themillennial generation is quite different from more traditional to be morefocused on retaining the employees. Indeed,nowadays, an organization has turned out to be the multigeneration workplace.Due to the time, mostly an organization is having millennial generation asrepresentative of the largest population in the workplace instead of the oldergeneration. The rise of this generation makes a challenge for an organizationitself and it would be concerned by every manager in terms of communicatingwith them. Feeney (2015) also mentions that it is important for an organizationto having well connection and communication with the millennialgeneration.
However, according toTwenge, et al (2010), sometime millennial generation can be referred as a “GenMe” which has a single-minded in attempt to pursue the career ladder and have alimitation for their loyalty. In addition to this, based on Deloitte study(2011), there is a difference between the younger and older groups withinmillennials. Deloitte (2011) adds the older generation (26 – 31 years old)within millennial are more concerned about job security.
Moreover,millennial generation wants it all and wants it now regarding the salary andbenefit, career advancement, work and life balance, challenging work andinvolved in society (Ng, Schweitze and Lyons, 2010). These work expectationsmake an organization realized that as employers who have striven to hirehigh-value employees and attract them and it is essential to know better theexpectations that this young generation can bring to the workplace. However,it has never been easy to reach an expectation. Based on Gallup (2016)research, in Indonesia, the level of employee engagement is lowest amongSoutheast Asian nations. As it mentioned before, the rise of the millennialgeneration in the workplace might be the reason of this lower number.Millennials have their own career-related expectation. An organization mustknow first how is the millennial expectation then engagement can be followed.In addition, the millennial generation has lower levels of engagement comparedto the older generation (Maxwell et al, 2010; Boone et al, 2011; Gallup, 2012).
Thus, this research will be concerned about the expectation of millennialgeneration in terms of career-related expectation if they have positiverelationship with the level of employee engagement. InThornton’s (2015) study about career-related expectation and employeeengagement, the result finds that there is no significant relationship betweencareer-related expectation to the level of employee engagement. In contrast toThornton’s (2015) finding, Maxwell, Ogden and Broadbridge (2010) discuss thatmillennials could be more engaged if the company acknowledged their career expectations.Maxwell, Ogden and Broadbridge (2010) is finished the study about millennialsin Scotland where Thornton’s (2015) study is targeted millennials in Ireland astheir population sample. Regarding to this gap, this study believes thatcareer-related expectation has a positive relationship in the level of employeeengagement among millennials in Indonesia.Furthermore,Ng et al (2010) explain that in career-related expectation contains of threeindicators namely career advancement expectation, salary expectation and workattributes expectation. Maxwell, Ogden and Broadbridge (2010) believes that ifan organization can conform the career expectation of millennials, thisgeneration could be having more engagement level to their organizations. Thus,this study also discusses the relationship among three indicators that includedin career-related expectation with the level of employee engagement betweenmillennials in Indonesia.
On theother hand, in Indonesia, working in tech-startup companies are considered bymillennials to be their starting career since the growing of tech-startupcompanies in Indonesia (Viinikainen, 2013). According to Radinal (2016), “Indonesia is becoming a hotbed forstartup”. In recent years, several tech-startups have appeared.
Based onstartupranking.com, Indonesia is ranked third after America and India. Radinal (2016)also mentions that tech-startups include gadget and apps are becoming trend inIndonesia. On the other hand, Vo (2016) shares that characteristics oftech-startup companies are matching with the characteristics of millennialgeneration.
Therefore, this study focuses on the millennials who are working inthe tech-startup companies in Indonesia.