THE IMPACT OF WORK–LIFE BALANCE, COMPENSATION, CAREER DEVELOPMENT, AND WORK ENVIRONMENT ON THE RETENTION OF GENERATION Z EMPLOYEES

Abstract

In today's business scenario, retention of employees is seen as the main sustainability challenge for organizations, especially in highly competitive industries with rapidly moving workforces. The present study attempts to assess Work-Life Balance, Career Development, Compensation, and Work Environment on Employee Retention at PT XYZ. A quantitative research approach was employed, collecting data from as many as 100 respondents selected based on predetermined criteria. The data were then analyzed through Structural Equation Modeling (SEM), using the SmartPLS version 4.0. The testing results in the measuring model confirm that all indicators passed the screening for validity and reliability as reflected in the values of Average Variance Extracted

(AVE), Composite Reliability, Cronbach's Alpha, and Variance Inflation Factor. Moreover, the R- Square value for Employee Retention stood at 0.637, meaning that a 63.7 percent variance can be

explained by the four independent variables. This shows that the model really explains quite well the phenomena that were investigated. From these findings, it is evident that the factors of Work-Life Balance, Career Development, Compensation, and Work Environment positively impact Employee Retention. Among the factors, Compensation and Career Development are considered the most prominent. These results signal to organizations the need for adequate rewarding their employees, providing them with clear career paths, offering supportive working environment, and maintaining a balance between professional and personal life so that employee loyalty can be encouraged. This paper adds to the extant literature by drawing empirical evidence on the strategies that help in retaining employees and further providing suggestions to organizations that want to fortify their Human Resource Management.