The research focuses on Generation Z workers—those born between 1997 and 2012—who now form a growing share of Indonesia’s urban workforce. As digital transformation accelerates across industries, the study provides timely evidence on how technological capability and psychological engagement interact to shape employee performance.
Digital Transformation Reshapes Productivity
South Tangerang, a rapidly developing city adjacent to Jakarta, has become a hub for digitally driven business activities. Companies increasingly rely on digital platforms, remote collaboration, and data-based decision-making. While Generation Z is often perceived as naturally tech-savvy, the study shows that familiarity with technology does not automatically translate into high productivity.
Digital competence in the workplace includes not only technical skills, but also the ability to evaluate information, collaborate online, solve problems, and use technology responsibly. Without these competencies, digital tools may fail to deliver productivity gains.
Survey Across Multiple Industries
The researchers surveyed 100 Generation Z employees working in various industries in South Tangerang. Data were collected through structured online questionnaires and analyzed to examine the relationships between digital competence, work engagement, and work productivity.
The analysis shows that digital competence significantly improves employees’ level of engagement at work. In turn, engaged employees demonstrate higher productivity, reflected in work efficiency, task completion, and output quality.
Key Findings
The study reports several clear findings:- Digital competence significantly increases work engagement
- Digital competence directly improves work productivity
- Work engagement has a strong positive effect on productivity
- Work engagement partially mediates the relationship between digital skills and productivity
Together, digital competence and work engagement explain 52 percent of the variation in work productivity among Generation Z employees.
Eko Sudarso from Universitas Pamulang notes that productivity improves when digital capability is supported by motivation and involvement at work. Employees who feel confident using digital tools tend to be more energetic, focused, and committed to their tasks.
Implications for Organizations and Policy
The findings suggest that organizations should move beyond technical training alone. Investments in digital skills will deliver stronger results when combined with human resource strategies that foster engagement, such as supportive leadership, meaningful job design, clear feedback, and career development opportunities.
For policymakers and educators, the study underscores the importance of integrating digital skills development with employability and engagement outcomes. Preparing young workers for the digital economy requires balancing technical competence with motivation and work readiness.
Author Profiles
- Eko Sudarso, M.M. - Universitas Pamulang
- Ima Amaliah, Ph.D. - Universitas Islam Bandung
Research Source
Sudarso, E., & Amaliah, I. (2026).
The Impact of Work Engagement and Digital Competence on Generation Z’s Work Productivity in South Tangerang City.
International Journal of Business and Applied Economics (IJBAE), Vol. 5 No. 1, pp. 187–204.
DOI: https://doi.org/10.55927/ijbae.v5i1.560
Official URL: https://nblformosapublisher.org/index.php/ijbae
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