Why Gen Z stays and leaves: Role of workplace flexibility, purpose-driven roles, and digital engagement tools on job retention

Authors

  • Nidhi Raj Gupta Assistant Professor, Kristu Jyanti College, autonomous
  • Neerupa Chauhan Assistant Professor, Kristu Jyanti College, autonomous
  • Riya Singh Assistant Professor, Kristu Jyanti College, autonomous

Keywords:

Generation Z, Job Retention, Work Place Flexibility, Purpose Driven Roles, Career Development, SEM Analysis

Abstract

Once Food, clothing and shelter were the basic necessities but now comfort, respect, flexibility are the most sought necessities. Gone those days where employees were retiring at the age of 60, today there is no word remain for stability in industry.   Gen z are the trend setter for the same and for them it’s not at all money, it’s beyond the monetary benefits. The impact of work shaping, purpose focused jobs, smart engagement tools and career progression are some of the workforce engagements strategies for Gen Z workforce in hybrid engagement. Conducting multiple regression analysis, the study utilizes survey data of 380 Gen Z employees from diverse industries and investigates the effect of these variables in predicting intentions to stay in a job. The results state that workplace flexibility blends with purpose-driven roles to create the reasons for retaining talent, with a starkly clear orientation between the roles that are particularly purpose-oriented towards bringing a person's values to the fore and the accumulate opportunity on stage for social impact. Furthermore, the digital engagement tools, particularly those in the category of feedback and connectivity, enhanced both types of job satisfaction and commitment, proving mediator in regard to retention. Companies will have to adapt their operations to meet Gen Z's expectations, according to this research, emphasizing flexible work options and meaningful roles and opportunities, as well as digital tools in collaboration and culture that fuel engagement. By identifying these retention drivers, in turn you can better serve the unique workplace desires of Gen Z which could ultimately result in organizations decreasing turnover and developing a more committed workplace. These insights can inform human resource strategies aimed at fostering long-term loyalty and engagement among Gen Z employees in a competitive talent landscape. This study used a survey to collect data from 380 people. We analyzed the data using a statistical method called Structural Equation Modeling (SEM) to understand the relationships between job satisfaction, work-life balance, and job-related intentions.

References

Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Sage Publications

Allen, T. D., Golden, T. D., & Shockley, K. M. (2013). How effective is telecommuting? Assessing the status of our scientific findings. Psychological Science in the Public Interest, 16(2), 40–68.

Allvin, M., Aronsson, G., Hagström, T., Johansson, G., & Lundberg, U. (2011). Work without boundaries: Psychological perspectives on the new working life. Wiley-Blackwell. https://doi.org/10.1002/9781119991236

Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2018). Leadership: Current theories, research, and future directions. Annual Review of Psychology, 60(1), 421-449.

Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2011). Burnout and work engagement: The JD-R approach. Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 389–411.

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

Blau, P. M. (1964). Exchange and power in social life. New York, NY: Wiley.

Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming. Routledge.

Deci, E. L., & Ryan, R. M. (2000). The "what" and "why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.

Deloitte. (2021). Global Millennial and Gen Z survey. Deloitte Insights.

Dutton, J. E., & Heaphy, E. D. (2010). The power of high-quality connections. In A. P. Brief & C. A. Staw (Eds.), Research in organizational behavior (Vol. 28, pp. 27–51). Emerald Group Publishing.

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (2001). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

Gajendran, Ravi & Harrison, David. (2007). The Good, the Bad, and the Unknown About Telecommuting: Meta-Analysis of Psychological Mediators and Individual Consequences. The Journal of applied psychology. 92. 1524-41. 10.1037/0021-9010.92.6.1524.

Grant, Christine & Wallace, Louise & Spurgeon, Peter. (2013). an exploration of the psychological factors affecting remote e-worker's job effectiveness, well-being and work-life balance. Employee Relations. 35. 527-546. 10.1108/ER-08-2012-0059.

Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16(2), 250–279.

Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16(2), 250–279.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson

Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Press.

Hill, E. J., Hawkins, A. J., & Ferris, M. (2010). Benefits of telecommuting for mothers: Effects on work and family. Journal of Family and Economic Issues, 31(4), 425–442.

How to recruit Generation Z workers and hold on to them | World EconomicForum (weforum.org); 2023

Jones, D. A., & et al. (2016). Purpose and work: A study of the impact of meaningful work on job satisfaction and retention. Journal of Organizational Behavior, 37(3), 324–348.

Kahn, R. L. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724.

Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36.

Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36.

Kossek, E. E., & Thompson, R. J. (2016). Workplace flexibility: Integrating employer and employee perspectives to close the research–practice implementation gap. The Academy of Management Annals, 10(1), 327-396.

Lanier, K. (2017). 5 things HR professionals need to know about Generation Z: Thought leaders share their views on HR profession and its direction for the future. Strategic HR Review, 16(6), 288-290.

Mann, S., & Harter, J. (2016). The impact of engagement and technology on job performance. Journal of Business Research, 69(9), 3841–3848.

Mosca, Joseph & Merkle, Janeth. (2024). Strategic Onboarding: Tailoring Gen Z Transition for Workplace Success. Journal of Business Diversity. 24. 10.33423/jbd.v24i1.6852.

Ng, E. S., & Johnson, J. M. (2021). Millennials and Gen Z in the workplace. Research in Personnel and Human Resources Management, 39, 1-59.

Nichols, Amy & Smith, Simon. (2024). What do Gen Z really want from a workplace?. Strategic HR Review. 10.1108/SHR-10-2024-0082.

Othman, Azman & Abdul Rashid, Mas & Said, Ruhil. (2024). Insight into Gen Z: Navigating the Changing Workplace Landscape. 10.9734/bpi/crbme/v7/6978E.

Pandita, Deepika. (2021). Innovation in talent management practices: creating an innovative employer branding strategy to attract generation Z. International Journal of Innovation Science. ahead-of-print. 10.1108/IJIS-10-2020-0217.

Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879–891.

Racolța-Paina, Nicoleta & Irini, Radu. (2021). Generation Z in the Workplace through the Lenses of Human Resource Professionals – A Qualitative Study. Quality - Access to Success. 22. 78-85.

Rajasekar, Balakrishnan. (2022). Exploring Strategic Challenges On The Gen Z Workforce Impacting Workplace Transformation.

Robinson, D. G., Pattison, K., & Love, S. (2022). Digital workplace engagement: Emerging trends and best practices. Journal of Business Research, 137, 245-258.

Schroth, H. (2019). Are you ready for Gen Z in the workplace? California Management Review, 61(3), 5–18.

Silva, J. (2014). Flexibility and telework: A bibliometric study of scientific production. Perspectivas em Ciência da Informação, 19, 159-173.

Sinek, S. (2017). Find your why: A practical guide for discovering purpose for you and your team. Penguin.

Smith, Travis & Nichols, Tommy. (2015). Understanding the Millennial Generation.

Twenge, J. M. (2020). Why Gen Z is different: The role of technology in shaping the new workforce. Journal of Managerial Psychology, 35(3), 157-175.

Twenge, J. M., & Campbell, S. M. (2008). Generational differences in psychological traits and their impact on the workplace. Journal of Managerial Psychology, 23(8), 862–877

Twenge, Jean & Campbell, Stacy. (2008). Generational Differences in Psychological Traits and Their Impact on the Workplace. Journal of Managerial Psychology. 23. 862-877. 10.1108/02683940810904367.

Wang, B., Liu, Y., Qian, J., & Parker, S. K. (2021). Achieving effective remote working during the COVID-19 pandemic: A work design perspective. Applied Psychology, 70(1), 16–59.

Published

2025-03-11

How to Cite

Gupta, N. R., Chauhan, N., & Singh, R. (2025). Why Gen Z stays and leaves: Role of workplace flexibility, purpose-driven roles, and digital engagement tools on job retention. International Journal of Economic Perspectives, 19(S1), 59–81. Retrieved from http://ijeponline.org/index.php/journal/article/view/918