Abstract
Efforts to retain Generation Z employees are one of the important challenges for organizations, particularly as this generation increasingly values alignment with organizational values, autonomy in carrying out job responsibilities, and positive psychological experiences at work. This study examines whether Person–Organization Fit and Work Discretion contribute to Generation Z employees’ Intention to Stay and whether these relationships are mediated by Employee Well-Being in Demak Regency, Indonesia. Researcher applied quantitative within approach called cross-sectional, data gathered through self-administered questionnaire. Data collected from 140 qualified respondents were examined by PLS-SEM using application named SmartPLS version 4. Findings proved Person–Organization Fit also Work Discretion have roles in correlation of Employee Well-Being with Intention to Stay in positive and significant way. Employee Well-Being also have roles for Intention to Stay and mediates influence from Person–Organization Fit with Work Discretion for employees’ intention to remain in positive way. This study proves Employee Well-Being consideres as crucial psychological mechanism related organizational fit and work discretion enhance employees’ intentions to remain with their organization. The study extends the employee retention literature by considering organizational, work-related, and psychological factors simultaneously in explaining Gen Z workers’ Intention to Remain. From a practical perspective, organizations can support Gen Z workers’ retention by strengthening value alignment, allowing sufficient discretion in work execution, and fostering a positive workplace that supports employee well-being.
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