Work-Life Balance and Employee Engagement Boost Generation Z Employee Performance in Surabaya

Created by AI

FORMOSA NEWS -  A study conducted by Safrida Popiyani, Liling Listyawati, and Damajanti Sri Lestari from the Business Administration Study Program, Faculty of Administrative Sciences, Dr. Soetomo University Surabaya, reveals that work-life balance and employee engagement play a crucial role in improving the performance of Generation Z employees in Surabaya. Published in the International Journal of Management and Business Intelligence (IJMBI) in 2026, the study highlights how organizations can enhance workforce productivity by creating a healthier and more engaging work environment.

The research comes at a time when Generation Z is becoming the dominant demographic group in Indonesia’s labor force. According to national statistics cited in the study, Generation Z represents nearly 28 percent of Indonesia’s population, making it the largest demographic segment and an increasingly important component of the workforce. At the same time, global workplace trends show that young employees prioritize work-life balance as one of the most important factors when choosing and staying in a job.

In Surabaya, Indonesia’s second-largest metropolitan city, thousands of young professionals enter industries such as manufacturing, trade, financial services, technology, and the creative economy every year. However, many organizations still operate with rigid working hours, limited flexibility, and insufficient attention to employee well-being. These conditions can reduce employee engagement, weaken commitment, and ultimately lower performance levels.

The researchers observed that Generation Z employees have different workplace expectations compared to previous generations. As digital natives, they seek flexibility, transparency, opportunities for self-development, and a harmonious integration between professional responsibilities and personal life. When these expectations are not met, employee satisfaction, engagement, and performance can decline significantly.

To examine these issues, the research team surveyed 96 Generation Z employees working in Surabaya. Respondents were selected using purposive sampling and met specific criteria, including being born between 1997 and 2012, actively employed in Surabaya-based organizations, and having at least six months of work experience. Data were collected through structured questionnaires distributed both online and offline.

The study focused on three key variables:

• Work-Life Balance, which measures how effectively employees balance work responsibilities and personal life.

• Employee Engagement, which reflects employees’ emotional attachment, dedication, and commitment to their organization.

• Employee Performance, which includes work quality, productivity, punctuality, collaboration, and attendance.
  The findings show that both work-life balance and employee engagement have a positive and significant impact on employee performance. Employees who experience a better balance between their professional and personal lives tend to demonstrate higher productivity, better work quality, and stronger commitment to organizational goals. Likewise, employees who feel emotionally connected to their workplace show greater enthusiasm, dedication, and concentration in their daily tasks.
  One of the most striking findings of the study is the strength of the relationship between these factors and employee performance. The statistical model produced an R-squared value of 0.949, indicating that work-life balance and employee engagement together explain 94.9 percent of the variation in employee performance among Generation Z workers in Surabaya. Only 5.1 percent of performance variation was influenced by other factors outside the model.
  According to the researchers, the findings demonstrate that organizations cannot rely solely on compensation or traditional performance management systems to achieve optimal results. Instead, companies need to build a work environment that supports employee well-being while simultaneously fostering emotional engagement and organizational commitment.

The study also reinforces broader workforce trends observed globally. Younger employees increasingly value flexibility, meaningful work, and supportive organizational cultures. Businesses that fail to adapt to these expectations may struggle to retain talented Generation Z employees and maintain high levels of productivity. Conversely, organizations that successfully create a balanced and engaging work ecosystem are more likely to achieve stronger employee performance and long-term sustainability.

For employers, the practical implications are clear. Flexible working arrangements, mental well-being initiatives, transparent communication, and opportunities for professional growth can contribute significantly to employee engagement and performance. For policymakers and human resource professionals, the findings provide valuable evidence for designing workplace policies that align with the needs and values of the emerging Generation Z workforce.

Liling Listyawati and her research team emphasize that maintaining harmony between personal life and work responsibilities is no longer a secondary consideration for young employees. Instead, it has become a key driver of organizational success. Companies that invest in both employee well-being and engagement are better positioned to unlock the full potential of the next generation of talent.

Author Profiles

Safrida Popiyani is a researcher in the Business Administration Study Program, Faculty of Administrative Sciences, Dr. Soetomo University Surabaya, with interests in human resource management and organizational behavior.

Liling Listyawati is a lecturer and researcher at Dr. Soetomo University Surabaya whose expertise includes human resource management, employee performance, and organizational development. She served as the corresponding author of this study.

Damajanti Sri Lestari is an academic and researcher at Dr. Soetomo University Surabaya focusing on business administration, employee development, and organizational performance.

Research Source

Title: The Effect of Work-Life Balance and Employee Engagement on Employee Performance in Generation Z in Surabaya

Authors: Safrida Popiyani, Liling Listyawati, Damajanti Sri Lestari

Journal: International Journal of Management and Business Intelligence (IJMBI), Vol. 4 No. 4, 2026

DOI: https://doi.org/10.59890/ijmbi.v4i4.42

Journal Website: https://journalijmbi.my.id/index.php/ijmbi