The Influence of Work-Life Balance and Career Development on Generation Z Employee Retention in Islamic Education Institutions

Riko Onki Putra; Afriyeni Afriyeni; Rani Iqasari

doi:10.63541/b72jd347

Authors

Riko Onki Putra Sekolah Tinggi Ilmu Ekonomi KBP Padang Author
Afriyeni Afriyeni Author
Rani Iqasari Author

DOI:

https://doi.org/10.63541/b72jd347

Keywords:

Career Development, Employee Retention, Work-Life Balance

Abstract

The high turnover rate of Generation Z employees at Perguruan Islam Arrisalah averaging 9.97% per year constitutes a strategic challenge that necessitates empirical investigation into retention determinants. This study aims to analyze the effect of work-life balance and career development on Generation Z employee retention. A quantitative approach was employed, distributing questionnaires to 100 Generation Z employees via total sampling. Multiple linear regression analysis was conducted using IBM SPSS version 26. Results indicate that both work-life balance (β = 0.268; sig. = 0.019) and career development (β = 0.151; sig. = 0.037) exert a positive and significant effect on employee retention. Together, the two variables account for 32.7% of retention variance (R² = 0.327; F = 23.517; sig. = 0.000). The novelty of this study lies in its simultaneous integration of both variables within the context of a value-based Islamic educational institution—a setting that remains underexplored in human resource management literature. These findings underscore the urgency of adaptive work-life balance policies and structured career development pathways as Generation Z retention strategies in educational organizations.

References

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice (13th ed.). Kogan Page.

Astuti, R. R., Prabowo, H., & Puspitasari, R. H. U. (2023). The effect of compensation and work-life balance on employee retention through work satisfaction (Case study at PT Sandang Asia Maju Abadi Semarang). Stability: Journal of Management and Business, 6(1), 39–62. https://doi.org/10.26877/sta.v6i1.13082

Bahar, A. K. M. M., Islam, M. A., Hamzah, A., Islam, S. N., & Reaz, M. D. (2022). The efficacy of work-life balance for young employee retention: A validated retention model for small private industries. International Journal of Process Management and Benchmarking, 12(3), 367–394. https://doi.org/10.1504/IJPMB.2022.10042254

Becker, G. S. (1966). Human capital: A theoretical and empirical analysis, with special reference to education. The Economic Journal, 76(303), 635–638. https://doi.org/10.2307/2229541

Blau, G. (2007). Does a corresponding set of variables for explaining voluntary organizational turnover transfer to explaining voluntary occupational turnover? Journal of Vocational Behavior, 70(1), 135–148. https://doi.org/10.1016/j.jvb.2006.07.007

Cascio, W. F. (2022). Managing human resources: Productivity, quality of work life, profits (11th ed.). McGraw-Hill Education.

Cennamo, L., & Gardner, D. (2008). Generational differences in work values, outcomes and person-organisation values fit. Journal of Managerial Psychology, 23(8), 891–906. https://doi.org/10.1108/02683940810904385

Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. IOSR Journal of Business and Management, 14(2), 8–16. https://doi.org/10.9790/487X-1420816

Deloitte Global. (2023). 2023 Gen Z and Millennial Survey. Deloitte Insights. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/genzmillennialsurvey.html

Dimock, M. (2019). Defining generations: Where Millennials end and Generation Z begins. Pew Research Center. https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/

Elfira, N., Sari, M., & Putra, R. S. (2021). Pengaruh work-life balance terhadap kinerja karyawan Generasi Z. Jurnal Manajemen Sumber Daya Manusia, 15(2), 110–125.

Enrika, A. (2020). Understanding the impact of reward and recognition, work life balance, on employee retention with job satisfaction as mediating variable on millennials in Indonesia. International Journal of Business and Technology Management, 14(3), 88–99.

Foot, M., Hook, C., & Jenkins, A. (2016). Introducing human resource management (7th ed.). Pearson Education.

Ghozali, I. (2018). Aplikasi analisis multivariat dengan program IBM SPSS 25 (9th ed.). Badan Penerbit Universitas Diponegoro.

Greenhaus, J. H., & Powell, G. N. (2006). When work and family are allies: A theory of work-family enrichment. Academy of Management Review, 31(1), 72–92. https://doi.org/10.5465/amr.2006.19379625

Grugulis, I. (2024). Human capital theory. In A guide to key theories for human resource management research (pp. 93–99). Edward Elgar Publishing.

Guest, D. E. (2002). Perspectives on the study of work-life balance. Social Science Information, 41(2), 255–279. https://doi.org/10.1177/0539018402041002005

Heriyanto, D. (2024). Indonesia Gen Z Report 2024. Jobplanet Indonesia.

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work (2nd ed.). John Wiley & Sons.

Holtom, B., Mitchell, T. R., Lee, T. W., & Eberly, M. B. (2024). The effects of career development, organizational commitment, and organizational support on employee retention. Journal of Applied Psychology, 109(3), 401–418. https://doi.org/10.1037/apl0001103

Houssein, A. A., Singh, J. S. K., & Arumugam, T. (2020). Retention of employees through career development, employee engagement and work-life balance: An empirical study among employees in the financial sector in Djibouti, East Africa. Global Business and Management Research, 12(3), 17–32.

Kahn, R. L., Wolfe, D. M., Quinn, R. P., Snoek, J. D., & Rosenthal, R. A. (1964). Organizational stress: Studies in role conflict and ambiguity. John Wiley & Sons.

Khoirunnisa, A., Rahman, F., & Sari, D. (2024). Pengaruh work-life balance terhadap retensi karyawan di sekolah Islam At-Tartil. Jurnal Manajemen Pendidikan Islam, 8(1), 45–62.

Luthans, F. (2011). Organizational behavior: An evidence-based approach (12th ed.). McGraw-Hill Irwin.

Mathis, R. L., & Jackson, J. H. (2006). Human resource management: Essential perspectives (4th ed.). Thomson/South-Western.

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z

Muarifah, A. M., Prabowo, H., & Dharmaputra, M. F. (2024). Pengaruh pelatihan, pengembangan karir, dan work life balance terhadap retensi karyawan dengan kepuasan kerja sebagai variabel intervening pada PT Laksana Bus Manufaktur. Jurnal Manajemen dan Bisnis, 4(6), 772–787.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2021). Human resource management: Gaining a competitive advantage (12th ed.). McGraw-Hill Education.

Pawar, A., & Pandit, A. (2023). Managing Generation Z: Strategies for retaining young talent in contemporary organizations. International Journal of Human Resource Studies, 13(2), 88–104. https://doi.org/10.5296/ijhrs.v13i2.20412

Prajodi, G., & Amalya, W. R. (2024). Pengembangan karir dan kompensasi terhadap retensi karyawan Generasi Z di Bandar Lampung. Jurnal Ekonomi dan Manajemen, 14(2), 176–181.

Purwatiningsih, E., & Sawitri, H. S. R. (2021). Analysis on the effect of work-life balance and career development on turnover intention for millennial generations. Management and Entrepreneurship: Trends of Development, 1(15), 80–88. https://doi.org/10.26661/2522-1566/2021-1/15-05

Sari, I. D. A., & Dewi, I. (2020). The effect of career development, work environment, and organisational commitment to employee retention. American Journal of Humanities and Social Sciences Research, 4(6), 129–134.

Schullery, N. M. (2013). Workplace engagement and generational differences in values. Business Communication Quarterly, 76(2), 252–265. https://doi.org/10.1177/1080569913476543

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons.

Sirgy, M. J., & Lee, D. J. (2018). Work-life balance: An integrative review. Applied Research in Quality of Life, 13(1), 229–254. https://doi.org/10.1007/s11482-017-9509-8

Sugiyono. (2013). Metode penelitian kuantitatif, kualitatif dan R&D. Alfabeta.

Syal, A., Rosnani, T., Daud, I., Kalis, M. C. I., & Hendri, M. I. (2024). The influence of reward, work-life balance on employee retention: The mediating effect of job satisfaction Generation Z employees in West Kalimantan. Journal of Management Science (JMAS), 7(1), 270–279.

Twenge, J. M. (2023). Generations: The real differences between Gen Z, Millennials, Gen X, Boomers, and Silents—and what they mean for America's future. Atria Books.

Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results. Harvard Business School Press.

Wallenburg, C. M., & Handfield, R. (2022). Social exchange theory. In Handbook of theories for purchasing, supply chain and management research (pp. 267–282). Edward Elgar Publishing.

Yang, L. Q., & Dini, M. (2023). Job hopping as a generational phenomenon: Understanding turnover patterns in Generation Z employees. Journal of Organizational Behavior, 44(4), 589–607. https://doi.org/10.1002/job.2706

Yulianti, Y., & Perizade, B. (2022). Analysis of the effect of work stress and work environment on employee performance (Case study in PT Indofood CBP Sukses Makmur, Tbk plant Tanjung Api-Api). Jurnal Ekonomi dan Bisnis, 3(13), 2252–2269.