Job Satisfaction as a Mediator of Leadership, Motivation, Compensation, and Work Environment on Gen Z Employee Performance in Jakarta
Abstract
Generation Z currently dominates the workforce in Indonesia, including in the private sector in DKI Jakarta Province. The unique characteristics of this generation such as a preference for work flexibility, self-development, and a work environment that supports values and sustainability. This study aims to analyze the influence of leadership style, motivation, compensation, and work environment on employee performance, with job satisfaction as a mediating variable on Generation Z employees in private companies in Jakarta. This study uses a quantitative approach with a causal design and survey method. Data were collected from 249 respondents with at least one year of work experience. Data testing was conducted using Structural Equation Modeling (SEM) using LISREL 8.8. The results indicate that motivation, compensation, and job satisfaction have a positive and significant direct effect on employee performance. Meanwhile, leadership style and work environment were found to have no positive effect on employee performance. In addition, job satisfaction was proven to mediate the variables of motivation, compensation, and work environment on employee performance. However, leadership style could not be mediated by job satisfaction in influencing employee performance. These findings emphasize the importance of compensation and work environment provided by companies, as well as motivational incentives to optimize the performance of Generation Z in the private sector. Furthermore, the selection of leadership styles within a company should be considered to enhance employee performance.
Downloads
References
Abolnasser, M. S. A., Abdou, A. H., Hassan, T. H., & Salem, A. E. (2023). Transformational leadership, employee engagement, job satisfaction, and psychological well-being among hotel employees after the height of the COVID-19 pandemic: A serial mediation model. International Journal of Environmental Research and Public Health, 20(4), 3609. https://doi.org/10.3390/ijerph20043609.
Ahmad, R., Nawaz, M. R & Ishaq, M. I. (2023). Social exchange theory and employee relations: Current status and future directions. Journal of Vocational Behavior, 144, 103909.
Achmad Fajar. (2024). Theoretical insights on integrated reporting: The inclusion of non-financial capitals in corporate disclosures. Corporate Communications, 23(4), 567–581. https://doi.org/10.1108/CCIJ-01-2018-0016.
Afrin, S., Mohd Kassim, M. A. B., Yusof, M. F., Hassan, M. S., Islam, M. A., & Khairuddin, K. N. B. (2023). Investigating the determinants of employee performance for sustainability: A study on the Bangladesh insurance industry. Sustainability, 15(7), 5674. https://doi.org/10.3390/su15075674.
Alamanda, W., & Riyanti, B. P. D. (2024). The Effect of Quality of Work Life on Job Performance for Generation Z Employees at Startup Companies in Jakarta. Jurnal Psikogenesis, 11(2), 122–131. https://doi.org/10.24854/jps.v11i2.2578
Andriyani, Y., Wulandari, J., Saptiani, F., & Rifa'i, A. (2024). Gaya Kepemimpinan Mikromanajemen dan Kinerja Karyawan Generasi Z di Indonesia. Jurnal Administrasi Bisnis, 13(2). https://doi.org/10.14710/jab.v13i2.64207
Bagozzi, R. P., Verbeke, W. J., & Gavino, J. C. (1975). Social exchange theory in marketing. Journal of Business Research, 125, 469-479.
Bińczycki, B., Łukasiński, W., & Dorocki, S. (2023). Determinants of motivation to work in terms of Industry 4.0—The Generasi Z perspective. Sustainability, 15(15), 12069.
Bulut, S., & Maraba, D. (2021). Generation Z and its perception of work through habits, motivations, expectations preferences, and work ethics. Psychology and Psychotherapy Research Studies, 4(4), PPRS.000593. https://doi.org/10.31031/PPRS.2021.04.000593
Dobrowolski, Z., Drozdowski, G., & Panait, M. (2022). Understanding the impact of Generation Z on risk management—A preliminary views on values, competencies, and ethics of the Generation Z in public administration. International Journal of Environmental Research and Public Health, 19(7), 3868.
Donkor, F., Dongmei, Z., & Sekyere, I. (2021). The mediating effects of organizational commitment on leadership styles and employee performance in SOEs in Ghana: A structural equation modeling analysis. SAGE Open, 11(2), 1–17. https://doi.org/10.1177/21582440211008894.
Emerson, R. M. (1976). Social exchange theory. Annual review of sociology, 2(1), 335-362.
Fajriyanti, Y., Rahmah, A. H., & Hadiyanti, S. U. E. (2023). Analisis motivasi kerja Generasi Z yang dipengaruhi oleh lingkungan kerja dan komitmen kerja. Journal of Trends Economics and Accounting Research, 4(1), 107-115.
Fatoki, Olawale. (2023). Participative Leadership and Employee Job Satisfaction: The Mediating Effects of Psychological Empowerment and Work Engagement. Foundations of Management. 15. 161-176. 10.2478/fman-2023-0012.
Garai-Fodor, M., Varga, J., & Csiszárik-Kocsir, Á. (2021). Correlation between generation Z in hungary and the motivating factors to do volunteer work in a value-based approach. Sustainability, 13(20), 11519.
Katsaros, K. K. (2024). Generasi Z Employee Adaptive Performance: The Role of Inclusive Leadership and Workplace Happiness. Administrative Sciences, 14(8), 163.
Kuzior, A., Kettler, K., & Rąb, Ł. (2022). Great resignation—ethical, cultural, relational, and personal dimensions of generation Y and Z employees’ engagement. Sustainability, 14(11), 6764.
Lee, Y. K. (2021). Impacts of digital technostress and digital technology self-efficacy on Fintech usage intention of Chinese Generasi Z consumers. Sustainability, 13(9), 5077.
Molm, L. D., Collett, J. L., & Schaefer, D. R. (2007). Building trust and commitment through reciprocal exchange. Social Psychology Quarterly, 83(4), 307-326.
Pham, T. H., Nguyen, T. M. H., La, T. C. T., Hoang, X. Q., Kiat Kok, S., Han, J. W., & Dang, Q. (2024). A bibliometrics analysis of studies on Generation Z’s self-perceived careers. Cogent Business & Management, 11(1), 2327120.
Popaitoon, P. (2022). Fostering Work Meaningfulness for Sustainable Human Resources: A Study of Generation Z. Sustainability (Switzerland), 14(6). https://doi.org/10.3390/su14063626.
Portoghese, I., Galletta, M., Leiter, M. P., Finco, G., d’Aloja, E., & Campagna, M. (2020). Job demand-control-support latent profiles and their relationships with interpersonal stressors, job burnout, and intrinsic work motivation. International Journal of Environmental Research and Public Health, 17(24), 9430. https://doi.org/10.3390/ijerph17249430
Prasetyaningtyas, S., Natalia, C., & Utami, T. (2022). Factors Affecting Generasi Z Work Performance: Case Study From E-Commerce Industry in Jabodetabek. Jurnal Aplikasi Bisnis dan Manajemen (JABM), 8(1), 12. https://doi.org/10.17358/jabm.8.1.12.
Pemerintah Republik Indonesia. (2003). Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan.
Prasad, K.D.V., Vaidya, R. and Rani, R. (2023), “Remote working and occupational stress: effects on IT-enabled industry employees in Hyderabad metro, India [original research]”, Frontiers in Psychology, Vol. 14.
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725. https://doi.org/10.1016/S2212-5671(15)00539-7
Rzemieniak, M., & Wawer, M. (2021). Employer branding in the context of the company’s sustainable development strategy from the perspective of gender diversity of generation Z. Sustainability, 13(2), 828.
Stankiewicz, K. (2024). Influence of Workplace Flexibility on Employee Engagement among Generation Z. Cogent Business & Management, 11(1), 2309705. https://doi.org/10.1080/23311975.2024.230970518(22), 11979.
Vieira, J., Gomes da Costa, C., & Santos, V. (2024). Talent management and generation z: a systematic literature review through the lens of employer branding. Administrative Sciences, 14(3), 49.
Wawer, M., Grzesiuk, K., & Jegorow, D. (2022). Smart mobility in a Smart City in the context of Generation Z sustainability, use of ICT, and participation. Energies, 15(13), 4651.
Yang, A. A., & Dini, Y. I. F. (2023). Faktor loyalitas karyawan Generasi Z: Kepuasan kerja sebagai mediasi. Jurnal Manajemen Maranatha, 23(1), 1-14.
Yang, C. L., & Hwang, M. (2014). Personality Traits and Simultaneous Reciprocal Influences between Job Performance and Job Satisfaction. Chinese Management Studies, 8(1), 6–26.
Yukl, G. (1989). Managerial leadership: A review of theory and research. Journal of Management, 15(2), 251–289.
Zainab, B., Akbar, W., & Siddiqui, F. (2022). Dampak kepemimpinan transformasional dan komunikasi transparan terhadap keterbukaan karyawan terhadap perubahan: peran mediasi kepercayaan organisasi karyawan dan peran moderat efikasi diri terkait perubahan. Leadership & Organization Development Journal, 43(1), 1-13. https://doi.org/10.1108/lodj-08-2020-0355
Zaman, S. N. (2024). Survey Deloitte: Kekhawatiran Gen Z dalam Hidup. Jurnal Mahasiswa Humanis, 4(1).
Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197- 206.
Zhao, H., Seibert, S. E., & Lumpkin, G. T. (2018). The relationship of personality to entrepreneurial intentions and performance: A meta-analytic review. Journal of Organizational Behavior, 39(4), 457-477. https://doi.org/10.1002/job.2283
Zhang, Q., & Wang, Y. (2022). The role of salary in employee motivation: Evidence from a survey of Chinese workers. Asian Journal of Business Research, 12(1), 87-102. https://doi.org/10.14707/ajbr.220086
Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763–771.
Zhu, W., Avolio, B. J., & Walumbwa, F. O. (2009). Moderating role of follower characteristics with transformational leadership and follower work outcomes. The Leadership Quarterly, 20(4), 601-609. https://doi.org/10.1016/j.leaqua.2009.03.005
Zuhdi, M. A., Setyaningrum, R. P., & Aditya, R. (2024). Pengaruh Work Life Balance dan Motivasi Kerja Terhadap Kinerja Karyawan Generasi Z. IJM: Journal of Multidisiplinary, 3(1). https://ojs.csspublishing.com/index.php/ijm/article/view/35
Copyright (c) 2025 Ayu Niken Shafira Putri, Putri Mega Desiana
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
