In Hong Kong and beyond, employers need to rethink the career ladder

For decades, the rules of career success seemed straightforward. Work hard, impress your boss, get promoted and earn more. A bigger title was proof of progress, while turning down a promotion was often seen as a lack of ambition.

But a younger generation is beginning to question this formula. What if getting promoted makes your working life worse?

A growing trend in Western workplaces, known as “job dropping”, describes employees voluntarily stepping away from management positions, declining promotions or moving into roles with fewer responsibilities.

Rather than chase the next rung on the corporate ladder, some choose to remain where they are, prioritising professional satisfaction and personal freedom over a more impressive job title.

For Gen Z in particular, career success is no longer necessarily measured by how far up the corporate ladder they climb. In a 2025 Deloitte survey of more than 23,000 Gen Z and millennial respondents across 44 countries, only 6 per cent cited a senior leadership position as their primary career goal. The findings suggest the reluctance to climb the corporate ladder is more than an online talking point.

It would be easy to dismiss this as young people becoming less ambitious. But perhaps they have simply started calculating the true cost of promotion.

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Consider what happens when an employee is offered a managerial position. The salary might increase by 10 per cent, perhaps slightly more, but the responsibilities can multiply. Suddenly, the job involves managing personalities, resolving staff disputes, conducting performance reviews, attending meetings and answering for the performance of an entire team.

The employee once rewarded for being good at a particular skill now spends much of the day managing other people’s work.

Middle management can be especially uncomfortable. Managers are expected to satisfy senior executives while keeping their teams motivated, often without having the authority or resources to solve the problems they inherit. They are accountable from above and answerable from below. The promotion may look like a step forward on paper, but the daily experience can feel like being trapped between two floors.

The financial calculation is not necessarily attractive either. Imagine receiving a 30 per cent salary increase by moving from a flexible job to a demanding position requiring five days in the office. The additional income is tempting, particularly in an expensive city like Hong Kong. Yet longer commutes, transport expenses, reduced flexibility and additional working hours all come at a cost.

An extra 40 hours at work every month effectively adds another working week. The question is whether the additional pay is adequate compensation.

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This is not to suggest money no longer matters. Hong Kong’s housing costs and financial pressures make higher salaries important. But employees are increasingly looking beyond their payslips. Time with family, personal interests, professional development and simply having the energy to enjoy life after work are becoming part of the equation.

There is also a deeper problem with how organisations define career progression. Being an excellent practitioner does not automatically make someone a good manager nor mean they want to become one. A talented salesperson may prefer closing deals and earning commissions to supervising a team. A skilled designer may find greater satisfaction in creative work than in conducting performance appraisals.

Yet many companies still treat management as the most obvious, and sometimes the only, route to advancement.

This is where employers need to rethink the traditional career ladder. There should be two equally respected paths, one for people who want to develop as specialists and another for those who aspire to lead teams. A high-performing individual contributor should not have to become a manager to earn more or gain recognition.

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Compensation should reflect the value someone creates, rather than simply the number of people reporting to them.

The implications extend beyond individual career choices. When capable employees repeatedly decline management positions, companies should question whether their leadership roles have become sufficiently attractive. Is the workload reasonable? Are managers given the authority and resources to do their jobs? Are they trained to handle the people-management responsibilities that come with promotion?

Simply offering a better title and a modest pay rise is unlikely to convince someone that taking on substantially more pressure is a good deal.

Businesses can also explore job redesign, distribute responsibilities more effectively and automate repetitive administrative tasks. More importantly, they should allow employees to discuss career expectations before accepting a promotion. Moving into management should be a considered career choice, not an automatic reward for good performance.

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Of course, job dropping is not without risks. Turning down promotion opportunities may affect future earnings, career mobility and long-term financial security. In an uncertain economy, stepping away from responsibility without a clear plan can create another set of problems. Nor should every challenging period at work be treated as a reason to retreat. Sometimes the answer is better training, clearer boundaries or a change in management rather than a change in position.

Ultimately, the most interesting aspect of job dropping is what it reveals about ambition itself. Career aspirations are not fixed. Someone who enjoys hands-on work today may discover a passion for leadership several years later. Another person may find greater fulfilment in mentoring colleagues and helping them succeed than in pursuing personal recognition.

Gen Z may not be rejecting ambition. It may simply be rejecting the idea that ambition must always point upwards. For employers, that distinction matters. The challenge is no longer just to create opportunities for promotion, but to create working environments where talented people want to stay and grow.