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Hakim, Aqilla Fadya Haya
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Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Effect of Incentives and Appreciation on Generation Z Productivity with Loyalty as a Mediating Variable: A Case Study in Surakarta City Hakim, Aqilla Fadya Haya; Irmawati, Irmawati
Jurnal Economic Resource Vol. 9 No. 1 (2026): October - March
Publisher : Fakultas Ekonomi & Bisnis Universitas Muslim Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57178/jer.v9i1.2315

Abstract

The purpose of this study is to ascertain and evaluate the impact of rewards and recognition on the productivity of Generation Z and to investigate the function of loyalty as a mediating variable in this connection. A total of 132 Generation Z workers in Surakarta City participated in the study, which used a quantitative methodology and a questionnaire. Structural Equation Modelling (SEM-PLS) utilising SmartPLS 4 was used for analysis. The findings showed that, whereas appreciation had a substantial positive effect on production, incentives had no discernible effect. Additionally, it was demonstrated that rewards and recognition had a strong positive impact on loyalty, thereby boosting productivity. Loyalty was found to mediate the effects of incentives and appreciation on productivity. These findings confirm that appreciation and loyalty play a significant role in increasing Generation Z productivity, while incentives have an indirect effect through increased loyalty.
Co-Authors Irmawati Irmawati