The role of transformational leadership, work-life balance, and employee engagement on Gen Z’s organizational commitment in the Indonesian creative industry

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Adapting retention strategies is essential to balancing Generation Z’s unique work values and preferences so that organizations can reduce turnover, enhance loyalty, and thrive in hybrid work environments. Therefore, this study aimed to investigate the role of transformational leadership, work-life balance, and employee engagement in Generation Z’s organizational work commitment. Using a cross-sectional quantitative method, the investigation adopted purposive sampling and partial least square structural equation modeling (PLS-SEM). The quantitative data were collected through an online survey of 130 Jakarta Generation Z employees of creative industry firms. In addition, the qualitative validation interview was conducted to support the quantitative data analysis, including group heads of employees from the creative agencies. The results showed that transformational leadership significantly impacted employee engagement and affective organizational commitment. The work-life balance had only significant relationships with employee engagement without affecting organizational commitment. Employee engagement fully mediated the relationship between work-life balance and affective organizational commitment. Generation Z employees considered engagement a critical factor affecting commitment to exert a more substantial influence than transformational leadership and work-life balance. The results emphasized the need for organizations to focus on enhancing employee engagement to improve commitment among Generation Z employees in the hybrid work environment.

Acknowledgment
Authors acknowledge with gratitude the financial, moral, and academic support extended by Universitas Multimedia Nusantara [Multimedia Nusantara University]. The institution’s commitment to excellence continues to motivate us in our endeavors.

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    • Figure 1. Research framework
    • Table 1. Participant demography
    • Table 2. Measurement model analysis
    • Table 3. Structural model evaluation
    • Table 4. Mediation test
    • Conceptualization
      Janitia Amirah Jasmine
    • Data curation
      Janitia Amirah Jasmine
    • Formal Analysis
      Janitia Amirah Jasmine
    • Investigation
      Janitia Amirah Jasmine, Prio Utomo
    • Methodology
      Janitia Amirah Jasmine, Prio Utomo
    • Project administration
      Janitia Amirah Jasmine
    • Resources
      Janitia Amirah Jasmine
    • Software
      Janitia Amirah Jasmine, Prio Utomo
    • Visualization
      Janitia Amirah Jasmine, Prio Utomo
    • Writing – original draft
      Janitia Amirah Jasmine
    • Funding acquisition
      Prio Utomo
    • Supervision
      Prio Utomo
    • Validation
      Prio Utomo
    • Writing – review & editing
      Prio Utomo