The Effect of Digital Talent Management and Work–Life Balance on Generation Z Employee Retention: The Mediating Role of Employee Engagement

Authors

  • Achmad Basofitrah Institut Badri Mashduqi, Indonesia Author
  • Faiqotul Aminah Institut Badri Mashduqi, Indonesia Author
  • Malikul Habsi Institut Badri Mashduqi, Indonesia Author
  • Himami Firdausi Institut Badri Mashduqi, Indonesia Author

Keywords:

Digital Talent Management, Work–Life Balance, Employee Engagement, Employee Retention

Abstract

This study examines the effects of Digital Talent Management (DTM) and Work–Life Balance (WLB) on Generation Z employee retention (ER) at PT Ekamas Mandiri Perkasa, Batam, utilizing Employee Engagement (EE) as a mediating variable. A quantitative explanatory approach was deployed, collecting primary data from 200 Gen Z employees through purposive sampling, which was subsequently analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The empirical results demonstrate that both DTM and WLB significantly and positively influence employee retention, with WLB emerging as the more dominant direct predictor. Crucially, EE acts as a vital mediator, confirming that digitalized human capital systems and flexible personal-life boundaries must successfully activate internal psychological states to curb job-hopping behaviors effectively (R² = 0.612). Grounded in Social Exchange Theory and the Resource-Based View, these findings provide a strategic blueprint for the real estate industry to synchronize technological innovations with robust well-being policies. This dual approach emotionally anchors young talent, transforming a transactional employment relationship into long-term organizational tenure in highly competitive regional hubs.

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Published

2026-07-05