The Influence of Recognition and Work-Life Balance on Employee Engagement among Generation Z Employees in Indonesia

Abstract

The growing representation of Generation Z in the Indonesian workforce demands a re-examination of what drives employee engagement among this cohort. Unlike prior studies that investigated recognition and work-life balance independently or within narrow organizational contexts, this study simultaneously examines both constructs among Generation Z employees across Indonesia. Using an explanatory quantitative design, data were collected from 212 respondents via purposive sampling and analyzed with Partial Least Square-Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0. The results reveal that recognition positively and significantly influences employee engagement (path = 0.318; p < 0.05), as does work-life balance (path = 0.482; p < 0.05). Together, both variables explain 52.4% of engagement variance (R² = 0.524). Work-life balance emerges as the dominant predictor (f² = 0.299), surpassing recognition (f² = 0.130), indicating that Generation Z prioritizes psychological well-being and boundary flexibility over symbolic appreciation. These findings contribute to the employee engagement literature by demonstrating that work-life balance is a stronger engagement determinant than recognition for this cohort, and offer actionable guidance for HR practitioners designing integrated retention strategies for the emerging workforce.