Human resources are strategic assets that determine organizational success amidst digital-era competition, particularly given the rising dominance of Generation Z in the workforce. This study aims to analyze the impact of Human Capital Development and Employee Engagement on the performance of Generation Z employees in Parepare City. A quantitative approach utilizing explanatory research methods was employed. Data were collected via questionnaires distributed to 100 respondents selected through purposive sampling. Analysis was conducted using multiple linear regression with SPSS software, incorporating partial tests (t-tests), simultaneous tests (F-tests), and the coefficient of determination (R²). The results indicate that Human Capital Development has a positive and significant effect on employee performance, with a coefficient of 0.368, a calculated t-value of 4.135, and a significance level of 0.000. Employee Engagement also exerts a positive and significant influence—with a coefficient of 0.452, a calculated t-value of 5.512, and a significance level of 0.000—emerging as the most dominant variable. Simultaneously, both variables significantly and positively affect employee performance, yielding a calculated F-value of 56.847 and a significance level of 0.000. The coefficient of determination (R²) of 0.540 reveals that Human Capital Development and Employee Engagement account for 54% of the variation in Generation Z employee performance, while the remainder is influenced by factors outside the research model. These findings confirm that competency development, supported by high levels of employee engagement, is a crucial factor in enhancing the performance of Generation Z employees in Parepare City.
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