Analysis of Factors that Influence Employee Performance in the Generation Z Workforce

Analysis of Factors that Influence Employee Performance in the Generation Z Workforce

Intania Syafrina¹, Muhammad Donal Mon²

¹Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Internasional Batam

²Baloi-Sei Ladi, Jl.Gajah Mada, Tiban Indah Kec.Sekupang, Kota Batam, Kepulauan Riau

DOI: https://dx.doi.org/10.47772/IJRISS.2024.801168

Received: 16 January 2024; Accepted: 20 January 2024; Published: 19 February 2024

ABSTRACT

Researching the Gen Z workforce is important. Because these workers have just entered the labor force, and he accounts for 27.94% of the total population. With a deeper understanding of the factors that influence Gen Z employee performance, companies can plan and design their workforce to ensure better performance. There is very little scientific literature that does scientific research for Gen Z. Therefore, the main purpose of this study is to help companies improve their organizational performance from a human resource management perspective.  With a total of 386 respondents, the sampling strategy employed in this study was Krejie and Morgan’s approach.The data analysis method used was SmartPLS.  There are ten theories based on the test results. H1. There is  impact between organizational culture on Employee Performance, H2. There is impact between work motivation on Employee Performance, H3. There is influence between Situational Leadership on Employee Performance, H4. There is impact between organizational culture on job satisfaction, H5.There is impact positive between Work Motivation on Job Satisfaction, H6.There is  impact between Situational leadership on Job Satisfaction, H7.There is impact between Job Satisfaction on Employee Performance, H8.There is an impact between organizational culture on employee performance with job satisfaction as mediating, H9. There is impact between work motivation on employee performance with job satisfaction as mediating, H10. There isimpact between Situational Leadership on employee performance with job satisfaction as mediating.

Key Words:Employee Performance, Organizational Culture, WorkvMotivation, Situational Leadership, Job Satisfaction

INTRODUCING

Generational Change attracts the attention of human resource managers, especially in Indonesia, to focus on changes in workforce demographics(Safri 2019).  Three distinct generational groupings make up the present working demographics: Generation Z (born between 1997 until 2012), Generation Y (born between 1981 until 1996), and Generation X (born between 1965 until 1980).(Pratama & Elistia, 2020).

Picture 1. Percentage of labor force population based on 2020 Statistics Center

According to Badan Pusat Statistics 2020, the bulk of Indonesia’s population is made up of Generation Z (born between 1997 until 2012) and Generation Y (born between 1981 until 1996). Generation Z makes up 27.94%.While, millennials or Gen Y comprise 25.87% of the population.  Given that the majority of these two generations are of working age, there may be potential for faster economic growth  (kominfo.go.id). There is  little academic literature that has conducted scientific research on Generation Z, especially in the field of human resource management.Research on the Generation Z workforce is important because this workforce has just entered the world of work and has reached a proportion of 27.94% of the total population. Therefore, it is important to look at the characteristics of Gen Z, especially in terms of education and career, to predict the lifestyle of the majority of Indonesians to create a golden generation in the future (detiksumbangsel.com).

By understanding of the factors that influence Gen Z employee performance, companies can plan and design their workforce to ensure higher performance.

Picture 2. Factors Considered by Indonesian Gen Z in Choosing a JobIDN Media, 2022

The majority of Gen Z consider salary as the main factor in finding or choosing a job. The survey’s results, which show that 80% of respondents agreed with this assertion, provide evidence of this. A career path is the second factor considered important by Gen Z Indonesia in choosing a job with a percentage of (64 percent). Conformity with interests is in third place with a percentage of (60 percent). The other four factors that are  important to Gen Z are working hours (58 percent), location (53 percent),  educational background (49 percent), and work environment (47 percent).

Since a company’s performance depends on its human resources, it is important to provide sufficient human resources to ensure the efficiency of the company.Therefore, employee job satisfaction is a highly influential aspect (Mulia, 2021). Many factors influence employee performance, including organizational culture, work motivation, and situational leadership. Of course, it carries out its mission with full responsibility(Firdiansyah et al., 2022).The difference between previous research is that researchers use an independent variable, namely transformational leadership, which focuses more on the leader’s efforts in developing the organization’s vision and mission.(Pratama & Elistia, 2020)and(Adhiguna & Hartono, 2023)The research was aimed at employees of the Sleman Regency Land Office.Based on the above background discussion, the researcher decided to conduct a further study titled “The Role of Organizational Culture, Work Motivation and Situational Leadership on the Performance of Generation Z Workforce Employees Mediated by Job Satisfaction”

Employee Performance is basically the actual actions that each person performs as job performance based on the expectations within the company. (Budi, 2022). Job satisfaction reflects the attitude and extent to which a person enjoys a particular job. Attitudes can be interpreted as positive or negative emotions that someone feels. (Gautama & Marchyta, 2022). Work Motivation, Employees can be motivated by giving them what they want. A motivated employee will work as hard as he can to do his job well for the success of the company. Hard work carried out with encouragement or motivation will produce satisfaction for employees in carrying out their work(Yuswardi, 2020). Organizational Culture, According to(Ishiqa Ramadhany Putri & Ningrum Fauziah Yusuf, 2022) Fundamentally, Organizational culture is important for organizational growth. It is recognized that organizational culture brings about positive change. Organizational culture fundamentally conveys a sense of internal cohesion. Situational leadership is an effective leadership style needed in companies to be able to improve employee performance in achieving the goals set by the company because it focuses on great attention to employee characteristics in determining appropriate leadership behavior. (Chichi Rahmayanti, 2018)

There are many factors that influence employee performance, one of which is Organizational culture (Sugiono & Ardhiansyah 2021) The study was conducted among a total of 110 employees at his Digital Agency in Jakarta and found that there is a positive and significant influence between corporate culture and employee performance. This research is also supported by other research. (Fadlilah & Mirwan, 2019), (Nursolihat & Abadi, 2022). (Habibie & Fahrullah, 2022) Research shows that employee performance is highly correlated with company culture. Research by (Wiyanto & Idruz, 2021) states that employee performance is significantly correlated with organizational culture. Research by (Nurmala & Jasin, 2021)states that employee performance is highly correlated with organizational culture.

H1. There is an impact between organizational culture on Employee Performance

The next factor that influences employee performance is work motivation (Tsuraya & Fernos, 2023)researched that employee performance is significantly correlated with work motivation. (Rambe, 2020)research shows that there is a very close relationship between employee performance and work motivation. (Dewi et al., 2023)researched that employee performance was significantly correlated with work motivation. (Putra & Yulianthini, 2020)researched that employee performance is positively affected by work motivation. And research by (Damayanti & Trianasari, 2021)states that employee performance has a positive and significant influence on work motivation.

H2. There is an impact between Work Motivation on employee performance

The next factor that influences employee performance is the Situational Leadership, (Akbar et al., 2023)This study explains that situational leadership has a positive and significant impact on employee performance. (Razikin et al., 2023)studied that employee performance is positively influenced by situational leadership.(Mon et al., 2021)This study states that employee performance is positively influenced by situational leadership. This research by (Rosalina & Wati, 2020)states that situational leadership has a positive impact on employee performance. (Agustin 2021)in this study that employee performance is greatly influenced by leadership.

H3. There is an impact betweenSituational Leadership on Employee Performance

Furthermore, organizattional culture influences jobs satisfaction, (Handoko et al., 2021), in this research explained There is a positive and significant impact between organizations culture on job satisfaction, and this research is also supported by other studies(Fadlilah & Mirwan 2019), (Prahasti & Wahyono2018).(Bagis et al., 2021)This study showed that the fifth hypothesis that job satisfaction variables have no effect on employee performance was not accepted.(Qorfianalda & Wulandari, 2021)This study tests a model of the impact of organizational culture on performance using job satisfaction and job loyalty as mediating variables in PT. Cikarang Golf Course, in this case organizational culture has a significant influence on employee performance.

H4. There is an impact between organizational culture on job satisfaction

Employees who have work motivation high levels and a good working environment will have a positive impact on the organization (Nurdin & Djuhartono, 2021), (Rambe, 2020) in this research explained There is a positive and significant influence between work motivation and job satisfaction, and this research is also supported by other research (Dethan et al., 2023) (Ady & Wijono, 2020)

H5. There is an impact between Work Motivation on Job Satisfaction

Furthermore, Situational Leadership influences job satisfaction, (Muhammad Ridlwan et al., 2021)This study was conducted at the Fire Management and Rescue Department of North Jakarta Administration with a total of 275 create a positive and significant impact between Situational Leadership andJob Satisfaction, (Razikin et al., 2023), This study explains that situational leadership has a positive and significant impact on job satisfaction(Mustofa & Muafi, 2021)researched that the significant and beneficial relationship between situational leadership and job satisfaction, (Fadlilah & Mirwan, 2019)researched that the significant and beneficial relationship between situational leadership and job satisfaction, another study conducted by (Setyorini et al., 2018)revealed that situational leadership has a positive impact on job satisfaction by promoting exemplary employees.

H6. There is an impact between Situational leadership on Job Satisfaction

Furthermore, Job satisfaction influences employee performance(Razikin et al., 2023.),(Dethan et al., 2023)his study shows that there is a positive and significant relationship between job satisfaction and employee performance, it explains the impact it has(Jodie Firjatullah et al., 2023) emphasize that job satisfaction have a positive and significant impact on the employee performance of the District Public Works and Public Housing Department Aceh Tamiang. Another study by (Sidabutar et al., 2020), (Agustinah et al., 2020)They concluded that job satisfaction has a positive relationship with employee performance. This means that if employees are more satisfied with their jobs, they are likely to perform better within the organization.

H7. There is an impact between Job Satisfaction on Employee Performance

The good values and habits adopted by employees encourage better performance (Agustinah et al., 2020), The existing culture does not necessarily make work results better, but rather requires a long process. Alignment of organizational culture with that of employees makes employees feel more happy (Sasuwe et al., 2018; Wahab,2021)so that employees can show the best performance (Yakup & Yakup, 2021). Other research actually explicitly reveals the role of satisfaction as a mediator (Salsabila et al., 2021). Research shows that the significant and beneficial relationship between employee performance and organizational culture is mediated by job satisfaction(Bagis et al., 2021),(Sugiono & Ardhiansyah, 2021)This is the basis for conjecturing that culture encourages satisfaction which ultimately improves the performance of PT Hansway Indonesia employees.

H8. There is an impact between organizational culture on employee performance and job satisfaction as a mediating

Work motivation plays a very important role in forming employee job satisfaction. Good work motivation can influence increased employee performance(Salsabila et al., 2021) in this research explains there is a positive and significant impact between work motivation and employee performance is mediated by job satisfaction, (Pallawagau, 2021)This study found that in PT Kasmar Tiar Raya, there is a significant and beneficial relationship between employee performance and work motivation through job satisfaction,(Rambe, 2020)There is a significant and beneficial relationship between employee performance and work motivation mediated by job satisfaction. This research is also supported by other research, (Dethan et al., 2023), (Agustinah et al., 2020).

H9. There is an impact between work motivation on employee performance and job satisfaction as a mediating

Situational leadership style plays a very important role when evaluating good performance and by implementing this situational leadership style it will be more efficient for the Generation Z workforce.(Fadlilah & Mirwan, 2019)There is a significant and beneficial relationship between employee performance and situational leadership mediated by job satisfaction., (Mustofa & Muafi, 2021)In this research there is significant and beneficial relationship between employee performance and situational leadership is mediated by job satisfaction. This research is also supported by other research, (Nurdin & Djuhartono 2021), (Muhammad Ridlwan et al., 2021) and (Setyorini et al., 2018).

H10. There is an impact between Situational Leadership on employee performance and job satisfaction as a mediating

RESEARCH METHODS

The study’s target population is  Batam City’s Generation Z workforce. They Data obtained came from an online questionnaire distributed to 384 respondents and sample size based on the Krejchie and Morgan table. The entire population was used as research. This type of research was carried out quantitatively using descriptive data analysis techniques and path analysis. Data processing will later use the SmartPLS.The types of variables are divided into three types (independent, dependent and mediation). Organizational Culture, Work Motivation and Situational Leadership as a Independent Variabel. Employee performance as a Dependent. Job Satisfaction as a Mediation.

Organizational Culture has 3 questions calculated on a Likerti scale (totally disagreeto totally agree)

1. Your company is a very familiar place, like a big family. Employees share many things with each other.
2. Your company is a very dynamic place to work and innovate. Employees are willing to take risks.
3. Your company is a very controlled and structured place. Official procedures generally govern employee behavior.

Work Motivation has 3 questions calculated on a Likerti scale (totally disagree to totally agree)

1. Employees who are motivated in doing their work will show good work behavior for the company.
2. Employees who are motivated at work will continue to do their work even though there are many obstacles and temptations, they will overcome them.
3. Motivated employees work hard to improve their job performance.

Situational Leadership has 3 questions calculated on a Likerti scale (totally disagree to totally agree)

1. Leadership in your company is generally considered to be an example of providing guidance, facilitating or developing employees.
2. Leadership in your company is generally seen as an example of showing serious effort, aggressiveness and a focus on results.
3. Leadership in your company is generally considered a role model in coordinating, organizing or running work units efficiently.

Job Satisfaction has 4 questions calculated on a Likerti scale (totally disagree to totally agree)

1. When I am given responsibility, I take my work seriously.
2. I work well to get a promotion.
3. I am satisfied with the salary given.
4. I feel that my supervisor supports me in improving my abilities.

Employee Performance has 4 questions calculated on a Likerti scale (totally disagree to totally agree)

1. I’m able to complete the work given with good quality.
2. I’m able to complete the targets given on time.
3. I can complete tasks accurately and correctly.
4. I immediately complete the tasks given without delay

RESULT AND DISCUSSION

Demographic characteristic of Respondents.

Based on the 400 questionnaires distributed, 386 questionnaires were returned and can be used. The majority of the research participants are Batam City residents, particularly the city’s Generation Z workforce.The population representing the sample was 387 respondents, of all the questionnaires distributed there were 14 who did not return them. From the results of distributing the questionnaire, it can be concluded that the majority of respondents are female on average age was 18-22 years.

Tabel 1. Demographic characteristic of Respondents

Source : primary data processed (2023)

Tabely2. Averager Variancer Extracted (AVE)

Source : primary data processed (2023)

Averager VariancerExtracted (AVE)test is carried out to determine the configuration. AVE value must be greater than 0.5 to be valid, because all test data AVE value results are above 0.5, it can be concluded that all the data used is valid.

Tabel 3. Reability Test Result (Composite Reliability and Cornbach Alpha)

Source : primary data processed (2023)

According to (Edeh et al., 023),variables with composite reliability and Cornbach alpha value greater than 0.7 are considered reliable. When tested, the composite reliability value for all variables is greater than 0.7, giving reliable results.

Tabel 4. Direct Effect Test Result

Source : primary data Aprocessed,2023

Tabel 5. Indirect Effect  Test Result

Source : primary data Aprocessed,2023

Based on the results of the analysis tested, it can be concluded that organizational culture, work motivation, and situational leadership are three elements of employee performance that have a strong beneficial impact on the job satisfaction of Gen Z employees.

This research reveals that the first hypothesis is that organizational culture has a positive effect on employee performance. The second hypothesis is also supported because employee job satisfaction is positively influenced by company culture. Given that employee performance is positively impacted by work motivation, hypothesis 3 is also accepted. Hypothesis 4 is also accepted since job satisfaction is positively impacted by work motivation. Given that situational leadership style has a major impact on worker performance, hypothesis 5 is accepted. Since situational leadership style significantly improves Job satisfaction mediation, hypothesis 6 is accepted. The seventh hypothesis states that job satisfaction mediation significantly improves worker performance. As a result, hypothesis 8 is accepted since job satisfaction acts as a mediating factor between organizational culture and employee performance, with the former having a considerable positive impact. Since employee performance and work motivation have a major beneficial impact on the mediation of job satisfaction, hypothesis 9 is also accepted. Furthermore, hypothesis 10 cannot be adopted because there is no discernible relationship between situational leadership style, employee performance, and job satisfaction. This is in line with a study(Crystallography, 2016)which stated that organizational culture has a significant impact on  job satisfaction of employees in Ponogoro Regional Defense Bureau. Research shows that in addition to a good and comfortable organizational culture, proper work motivation also has a significant impact on her Gen Z performance(Evyanto, 2022).

CONCLUSIONS

Based on the results of the tests conducted, it was determined that a Generation Z business improvement model had been developed. The talent development management model is shown in the following diagram:

Picture 3. Generation Z Performance Improvement Model

So that the results of this research can have managerial implications, human resource management should prioritize the sequence of variables that buildda model for improving employee performance in generation Z, and pay more attention to the dimensions that contribute greatly to building supporting variables for the model so that the company’s main goal is  According to the model, it is possible to increase generation Z employees’ performance in an optimal and quantifiable way. The conclusion consists of conclusions and suggestions which are short answers to the research questions. Conclusions must have a relationship between goals and results.

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