The Role of Culture Organization in Increase Attachment Employees and Retention Talent: A Study on Generation Z

The role of organizational culture is critical in enhancing employee attachment and talent retention, particularly among Generation Z, who possess distinct characteristics compared to previous generations. This study aims to analyze the influence of organizational culture on employee engagement and talent retention among Generation Z employees. 312 Generation Z employees working in technology companies in Indonesia were surveyed. Data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The results reveal that an inclusive and supportive organizational culture, with an average score of 4.52 on a 5-point Likert scale, significantly enhances employee engagement (mean = 4.47). The path coefficient between organizational culture and employee engagement is 0.428 (p < 0.001). In contrast, employee engagement strongly affects talent retention, with a path coefficient of 0.489 (p < 0.001) and an average score of 4.41. Additionally, employee engagement mediates the relationship between organizational culture and retention, with an indirect effect of 0.209 (p = 0.001). These findings provide valuable insights for companies seeking to design organizational cultures supporting Generation Z employees’ productivity and loyalty.

Keywords: culture​ organization, Generation Z, engagement employees, companies technology, retention talent.