Yasmin Kusumawati
Universitas Muhammadiyah Jakarta, Jakarta, Indonesia

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The Mediating Role of Self-Efficacy in the Effects of Compensation, Rewards, and the Work Environment on Work Commitment Among Generation Z Employees in South Tangerang City Yasmin Kusumawati; Nazifah Husainah; Usep Abdul Matin
Danadyaksa: Post Modern Economy Journal Vol. 4 No. 2 (2026): Post Modern Economy Journal
Publisher : Yayasan Pendidikan Islam Bustanul Ulum Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69965/danadyaksa.v4i2.681

Abstract

This study examines the mediating role of self-efficacy in the relationships between compensation, rewards, the work environment, and work commitment among Generation Z employees in South Tangerang City. An associative quantitative research design was employed. Data were collected from 239 Generation Z respondents and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 3. The results showed that compensation did not significantly affect self-efficacy (t = 1.3451, p = 0.1792), and rewards did not significantly affect self-efficacy (t = 1.5558, p = 0.1204). The work environment significantly affected self-efficacy (t = 2.8679, p = 0.0043). Self-efficacy significantly affected work commitment (t = 4.2623, p < 0.001). Compensation and the work environment also had significant direct effects on work commitment (t = 3.4120, p = 0.0007; t = 3.3489, p = 0.0009, respectively), whereas rewards did not (t = 1.7975, p = 0.0729). Self-efficacy did not mediate the effects of compensation or rewards on work commitment. However, self-efficacy significantly mediated the effect of the work environment on work commitment (t = 2.5091, p = 0.0124). These findings highlight the importance of a supportive work environment and employees’ psychological resources in strengthening sustainable work commitment among Generation Z employees.