68% of Companies Struggle to Find Managers as Gen Z Shuns Promotions

Jakarta - Companies in Indonesia are facing a new challenge in finding future leaders. As many as 68% of companies admit they are struggling to fill middle-manager positions and expect the difficulty to intensify over the next one to two years.

However, the issue is not that the younger generation lacks the desire to lead. Recent research from Robert Walters Indonesia shows that 75% of Generation Z (Gen Z) professionals still regard managerial positions as an important career stage. Yet, many are choosing to delay or decline promotions because they feel the compensation offered is not commensurate with the responsibilities they would have to shoulder.

This phenomenon is part of a global trend known as ‘conscious unbossing’, where young professionals tend to avoid managerial roles despite having the opportunity to occupy them. In Indonesia, the core problem is considered to be more related to issues of compensation, job design, and workload rather than mere intergenerational character differences.

The research found that only 27% of Gen Z respondents see their current managers as inspirational figures they would want to emulate. Conversely, 33% perceive managers as experiencing prolonged stress or working excessively, while another 27% see managers as having great responsibility but limited authority.

Country Head of Robert Walters Indonesia, Eric Mary, stated that the title of manager no longer holds the same appeal for the younger generation. “Gen Z wants to lead, but they see the pressure that current middle managers face. They are hesitant to step forward unless the financial rewards are commensurate with the responsibility,” Eric said in a statement quoted in Jakarta on Friday (19/6/2026).

From a compensation perspective, 64% of Gen Z respondents hesitant to take management positions cited a salary increase as the primary factor that could change their decision. Meanwhile, 38% desire clearer decision-making authority and 24% highlighted the importance of work-life balance.

However, corporate responses are deemed not yet aligned with these expectations. Only 38% of companies reported they are reviewing salary packages and incentives. The majority of companies are instead more focused on clearer promotion pathways (69%) and leadership development programmes (62%).

Associate Director of Robert Walters Indonesia, Michelle Tanjung, assessed that many young Indonesian professionals are pragmatic because they must balance career demands with family financial needs. “They see their current superiors acting as ‘corporate warriors’ who bear excessive burdens, having to meet the demands of senior leaders while protecting junior teams without adequate compensation,” Michelle said.

This situation also potentially threatens business continuity. A total of 64% of companies stated that a strong middle-manager pipeline is important for preparing future senior leaders. However, 36% of companies admitted they have not yet taken any steps to address this gap.

Robert Walters suggests that companies need to start improving compensation structures, providing clearer authority to managers, and increasing appreciation for management positions to make them more attractive to the younger generation.