A Quantitative Study on Leadership and Gen Z's Job Satisfaction: Its Impact on Employee Retention in The Private Sector in Indonesia

  • Authors

    • Indri Guslina Faculty of Economics and Business, Postgraduate Doctor of Management Science, Universitas Persada Indonesia Y.A.I- Jakarta, Indonesia
    • Angga Rinzani Faculty of Economics and Business, Postgraduate Doctor of Management Science, Universitas Persada Indonesia Y.A.I- Jakarta, Indonesia
    • Joni Mantong Faculty of Economics and Business, Postgraduate Doctor of Management Science, Universitas Persada Indonesia Y.A.I- Jakarta, Indonesia
    • Anoesyirwan Moeins Professor, Faculty of Economics and Business, Postgraduate Doctor of Management Science, Universitas Persada Indonesia Y.A.I- Jakarta, Indonesia
    • Eka Rakhmat Kabul Lecturer, Faculty of Economics and Business, Postgraduate Doctor of Management Science, Universitas Persada Indonesia Y.A.I- Jakarta, Indonesia
    https://doi.org/10.14419/79pc6586

    Received date: July 10, 2025

    Accepted date: August 27, 2025

    Published date: September 4, 2025

  • Generation Z, Leadership, Job Satisfaction, Employee Retention, Private Sector, Indonesia

  • Abstract

    People born between 1997 and 2012, known as Generation Z, are increasingly dominating the workforce. As private sector companies, particularly in Indonesia, face challenges in retaining this new generation of workers, it is becoming more critical to understand the factors that influence their job satisfaction and retention. Given Gen Z's unique expectations shaped by their familiarity with technology, desire for purpose-driven work, and demand for work-life balance private sector organizations must adopt tailored strategies to engage and retain them effectively. Customizing approaches that address these needs will play a crucial role in luring and keeping Gen Z employees in the private industry. The objectives of this study are to identify the main factors influencing job satisfaction among Gen Z workers in Indonesia's private sector and to investigate the relationship between job satisfaction and employee retention. The study aims to analyze how Gen Z's job satisfaction and their intentions to leave are correlated with company culture, management practices, employee recognition, and the integration of technology within private sector organizations. Data from Gen Z workers in private sector companies in Indonesia were collected using questionnaires as part of a quantitative research approach. The survey assessed various aspects of job satisfaction, including managerial support, career development opportunities, organizational culture, and the use of technology in the workplace. The data were analyzed using structural equation modeling (SEM) to examine the correlations between these factors, and the direct effects on employee retention were evaluated through regression analysis. According to the survey, job satisfaction among Gen Z workers in Indonesia's private sector is significantly influenced by management support, career development opportunities, and organizational culture. Additionally, Gen Z workers highly value the digital environments and technology tools that enhance their productivity. The study found that the relationship between management practices and employee retention is mediated by job satisfaction, indicating that improving job satisfaction can help reduce turnover in this group. The findings highlight the importance of adapting management practices to meet the unique needs of Gen Z workers in Indonesia's private sector. Private sector organizations should focus on fostering a supportive and inclusive work environment, providing clear career advancement opportunities, and leveraging technology to enhance the workplace. By improving job satisfaction, these companies can effectively increase employee retention rates and ensure a more engaged and productive workforce.

  • References

    1. Ayrancı, A. E., & Ayrancı, E. (2015). A Research on Job Satisfaction Factors of Private Entrepreneurs: The Case of Beylikduzu Organized Indus-trial Zone. Procedia - Social and Behavioral Sciences, 195, 268–277. https://doi.org/10.1016/j.sbspro.2015.06.156
    2. Bhattacharya, Y. (2015). Employee Engagement as a Predictor of Seafarer Retention: A Study among Indian Officers. Asian Journal of Shipping and Logistics, 31(2), 295–318. https://doi.org/10.1016/j.ajsl.2015.06.007
    3. Carmines, E.G.; Zeller, R. A. (1979). Reliability and Validity Assessment. Sage Publications, 17.
    4. D’Acunto, D., Filieri, R., & Okumus, F. (2025). The Gen Z attitude-behavior gap in sustainability-framed eWOM: A generational cohort theory perspective. International Journal of Hospitality Management, 129(April 2024), 104194. https://doi.org/10.1016/j.ijhm.2025.104194
    5. Fornell, C.; Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. J. Mark. Res, 18, 382–388.
    6. Guslina, I. (2025). The Influence of Transformational Leadership Style, Work Environment and Organizational Culture on Employee Job Satisfac-tion at PT Bhinneka Tekno Sejati. Journal Eduvest, 5(3), 3272–3286.
    7. Hair Jr., J., Black, W., Babin, J. B., & Anderson, E. R. (2014). Multivariate Data Analysis. Statistica Neerlandica (Pearson Ne, Vol. 16). Pearson. 16(I).
    8. Hanifah, A. (2023). Indonesian Gen Z Work Values, Preference between Startups and Corporations, and Intention to Apply. Jurnal Ekonomi Dan Kewirausahaan West Science, 1(03), 236–245. https://doi.org/10.58812/jekws.v1i03.518
    9. Lim, H. L. (2012). Attracting and Retaining Generation Y Engineering and Business Professionals in the Middle-East. Procedia - Social and Be-havioral Sciences, 62, 25–29. https://doi.org/10.1016/j.sbspro.2012.09.006
    10. Moore, S. J., Durst, P. T., Ritter, C., Nobrega, D., & Barkema, H. W. (2020). Effects of employer management on employee recruitment, satisfac-tion, engagement, and retention on large US dairy farms. Journal of Dairy Science, 103(9), 8482–8493. https://doi.org/10.3168/jds.2019-18025
    11. Ndiango, S., Gabriel, D., & Changalima, I. A. (2024). Give me my flowers before I die! Linking employee recognition, job satisfaction and em-ployee retention in logistics companies: A multigroup analysis. Social Sciences and Humanities Open, 10(July), 101053. https://doi.org/10.1016/j.ssaho.2024.101053
    12. Oliva, T.A.; Oliver, R.L.; MacMillan, I. C. (1992). A catastrophe model for developing service satisfaction strategies. J. Mark, 56, 83–95.
    13. Presbitero, A., Fujimoto, Y., & Lim, W. M. (2025). Employee engagement and retention in multicultural work groups: The interplay of employee and supervisory cultural intelligence. Journal of Business Research, 186(August 2023), 115012. https://doi.org/10.1016/j.jbusres.2024.115012
    14. Sidiq, S. A., & Poerwita, S. F. (2025). Generation Z in the Workplace: How Work-Life Balance and Job Satisfaction Drive Turnover Intention in Indonesia. International Journal of Environmental Sciences, 64–74.
    15. Tran, T. T., Nguyen, T. T., & Nguyen, N. T. (2025). Determinants influencing job-hopping behavior and turnover intention: An investigation among Gen Z in the marketing field. Asia Pacific Management Review, 30(2). https://doi.org/10.1016/j.apmrv.2025.100358

  • Downloads

  • How to Cite

    Guslina, I., Rinzani, A., Mantong, J., Moeins, A., & Rakhmat Kabul, E. (2025). A Quantitative Study on Leadership and Gen Z’s Job Satisfaction: Its Impact on Employee Retention in The Private Sector in Indonesia. International Journal of Accounting and Economics Studies, 12(5), 188-195. https://doi.org/10.14419/79pc6586