INFLUENCING FACTORS OF EMPLOYER ATTRACTIVENESS TOWARDS INTENTION TO APPLY OF GENERATION Z DIGITAL TALENTS TO DIGITAL TECHNOLOGY COMPANIES IN INDONESIA (CASE STUDY: BANDUNG INSTITUTE OF TECHNOLOGY)

• Main Author: Yusa Abdi Dharma, Putu
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49643
• Institution: Institut Teknologi Bandung

Indonesia is the largest and fastest growing digital economy in Southeast Asia. According to E-Conomy Southeast Asia 2019 report, the size of Indonesia’s digital economy in 2019 was $40 billion. Its size was actually quadrupled since 2015 at an average growth rate of 49% a year, beating all other Southeast Asia countries. The size of Indonesia’s digital economy is forecasted to even reach $130 billion by 2025. There is a huge demand for digital talents to support the fast growing of Indonesia’s digital economy. According to a 2016 Mckinsey report, the emerging digital economy potentially add 3.7 million jobs in 2025. Johny Plate, Indonesia’s Ministry of Informatics and Communication, stated that the needs of digital talent projected in 2030 until 2035 would be around 113 million. However, Indonesia currently face digital talent shortfalls. Indonesia’s Ministry of Informatics and Communication stated that Indonesia will still lack of 9 million of digital talents by 2030. The effort to educate and produce more digital talents by government and the digital technology companies are great, however employer branding is also needed to promote their company to be the best place to work. One way to achieve the target is through having an understanding of what attributes that attract talent to work for a company. Digital technology companies should focus on generation Z as their targeted talent. Generation Z, born between 1995 and the early-to-mid 2000s, will make up approximately 24% of global workforce by 2020 onwards. However, the previous research that focus to identify the factors of employer attractiveness that attract generation Z to apply to digital tech companies have been in a low number. Therefore, this study aims to identify the influence of employer attractiveness towards the intention to apply of generation Z digital talents to digital technology company in Indonesia. Based on the previous research and literature review, the author used Employer Attractiveness Scale by Berthon et al. (2005) as the tool of identifying employer attractiveness attributes for this study. In addition to that, this study added a variable of work-life value to the attributes of employer attractiveness as this variable corresponds to the characteristics of Generation Z workforce who value work-life balance, flexible working time, meaningful job, and entrepreneurial spirit. This study also used the indicators to measure the intention to apply for a job proposed by Highhouse et al. (2003). Data were collected through questionnaire targeting Bandung Institute of Technology students as the second top contributor for employees in Indonesia’s unicorn digital tech companies. The author gathered 502 ITB students who met the criteria for being the respondents of this study. Descriptive analysis was used to analysis the respondents profile such as respondents’ faculty or school, respondents’ batch year, and the digital skills which respondents have. PLS-SEM was used to find the significant factors of employer attractiveness which influence the intention to apply for a job. Interest Value, Social Value, Development Value, and Work-life value were found significant to influence the intention to apply for a job. Meanwhile Economic Value and Application Value were found did not have significant influence towards the intention to apply for a job of generation Z digital talents to digital tech companies in Indonesia. The finding of the study gives recommendation for digital technology companies to include the 4 significant factors of employer attractiveness (Interest Value, Social Value, Development Value, and Work-life Value) into the companies’ employer branding strategy both in offline and online way.