Flexible Work Arrangements Strongly Improve the Psychological Well-Being of Generation Z Gig Workers

Illustration by AI

FORMOSA NEWS - Bandung - Generation Z drivers working in Jakarta’s online transportation sector experience better psychological well-being when they have greater flexibility over how, when, and where they work. That is the key finding of a 2026 study conducted by Ahmad Hafizh Fauzan and Dian Indiyati from the Master of Management Program, Faculty of Economics and Business, Telkom University. Published in the Formosa Journal of Multidisciplinary Research (FJMR), the study found that flexible working arrangements have an even stronger influence on psychological well-being than work-life balance among young gig workers.

The findings arrive at a time when Indonesia’s digital economy continues to expand and platform-based employment has become an important source of income for millions of people. Online transportation services such as Gojek, Grab, and Maxim rely heavily on Generation Z workers, making their mental health and workplace experience increasingly relevant for businesses, policymakers, and society.

The Growing Importance of Well-Being in the Gig Economy

Digital platforms have transformed the way people work, replacing traditional employment relationships with flexible, technology-driven partnerships. For many young Indonesians, gig work offers freedom to choose working hours and locations, making it an attractive career option.

However, flexibility also comes with uncertainty. Platform workers generally do not receive the employment protections available to permanent employees, while fluctuating demand, unpredictable income, and algorithm-based work allocation can create psychological pressure.

The researchers note that Generation Z is already considered one of the most psychologically vulnerable age groups. Previous national surveys cited in the study indicate that anxiety, burnout, and work-life imbalance have become growing concerns among young workers. Although flexibility is one of the main attractions of gig work, its actual impact on workers' mental well-being had not been comprehensively examined in Indonesia’s online transportation sector before this study.

Surveying Generation Z Drivers Across Jakarta

The research analyzed responses from 180 Generation Z online transportation drivers working across Jakarta. Participants were active drivers for digital transportation platforms and completed structured questionnaires measuring three major aspects of their working lives:

  • Work-life balance
  • Flexible working arrangements
  • Psychological well-being

The researchers applied a quantitative cross-sectional research design, collecting data at a single point in time. Responses were analyzed using statistical modeling to determine how strongly work-life balance and flexible working arrangements influence psychological well-being.

Flexible Working Has the Strongest Positive Effect

The study found that respondents generally viewed both their work-life balance and work flexibility positively, although their psychological well-being remained only moderately positive.

The descriptive findings include:

  • Work-Life Balance: 71% (Good)
  • Flexible Working Arrangement: 69% (Good)
  • Psychological Well-Being: 67% (Fairly Good)

Statistical analysis revealed that both workplace factors significantly improve psychological well-being.

The major findings include:

  • Work-life balance positively influenced psychological well-being with a path coefficient of 0.417.
  • Flexible working arrangements produced an even stronger positive effect, with a coefficient of 0.468.
  • Together, both variables explained 45.2% of the variation in psychological well-being among respondents.
  • Flexible working arrangements emerged as the most influential predictor of psychological well-being.

These findings suggest that having control over work schedules, choosing when to accept orders, and deciding where to operate provides immediate psychological benefits for gig workers.

Why Flexibility Matters More Than Balance

According to Ahmad Hafizh Fauzan and Dian Indiyati of Telkom University, flexible working arrangements provide workers with a stronger sense of personal control. That autonomy allows drivers to better manage daily stress arising from traffic congestion, unpredictable customer demand, and fluctuating earnings.

The researchers explain that work-life balance remains important, but flexibility functions as the foundation that enables workers to create that balance in the first place. In Jakarta's platform-based transportation environment, where no fixed working hours exist, control over working conditions appears to be more important than simply achieving a balanced lifestyle afterward.

Implications for Digital Platforms and Public Policy

The findings carry important implications for companies operating digital transportation platforms.

The study recommends that platform providers preserve genuine driver autonomy by allowing workers to:

  • choose their working hours,
  • select operating locations,
  • reject unsuitable orders without excessive penalties, and
  • maintain meaningful flexibility in daily operations.

The researchers also suggest introducing accessible mental health support, including confidential counseling services and in-app psychological assistance designed specifically for driver-partners.

For Generation Z gig workers themselves, the findings emphasize the value of effective time management. Even without fixed schedules, setting clear boundaries between work and personal life can contribute significantly to long-term psychological well-being.

Beyond the transportation industry, the research provides useful evidence for policymakers considering regulations governing Indonesia's rapidly expanding gig economy. Supporting worker autonomy while improving psychological support systems may help create healthier and more sustainable platform-based employment.

Looking Ahead

The authors acknowledge that the study represents only one point in time and focuses on Generation Z online transportation drivers in Jakarta. Future studies could examine additional factors influencing psychological well-being, including algorithmic management, income security, job uncertainty, and peer support. They also recommend combining surveys with in-depth interviews to better understand the lived experiences of young gig workers.

As Indonesia's digital labor market continues to evolve, the study highlights an important message: flexibility alone is valuable, but meaningful autonomy over work may be one of the strongest contributors to the mental well-being of the country's growing Generation Z workforce.

Author Profiles

Ahmad Hafizh Fauzan, S.M. is a researcher and postgraduate student in the Master of Management Program, Faculty of Economics and Business, Telkom University. His research focuses on human resource management, the digital economy, and employee well-being within Indonesia's growing gig economy.

Dian Indiyati is a lecturer in the Master of Management Program, Faculty of Economics and Business, Telkom University. Her academic expertise includes human resource management, organizational behavior, employee well-being, work-life balance, and workforce management in digital business environments.

Source

Article Title: Work-Life Balance and Flexible Working Arrangement as Determinants of Psychological Well-Being among Generation Z Gig Workers in Jakarta’s Online Transportation Sector

Authors: Ahmad Hafizh Fauzan & Dian Indiyati

Journal: Formosa Journal of Multidisciplinary Research (FJMR), Vol. 5, No. 7 (2026)

DOI: https://doi.org/10.55927/fjmr.v5i7.141

Posting Komentar

0 Komentar