The purpose of this research is to investigate how hybrid work arrangements and transformational leadership impact the job stress of Generation Z workers in Denpasar City, utilizing work-life balance as a mediating factor.. A causal-explanatory approach was employed with a sample of 156 respondents selected through purposive sampling. Data were collected via questionnaires and analyzed using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) via SmartPLS 3.0. The results indicate that hybrid working and transformational leadership have a positive and significant effect on work-life balance. Furthermore, worklife balance, hybrid working, and transformational leadership directly exert a negative and significant effect on job stress. Work-life balance is also proven to mediate the effect of hybrid working on reducing job stress. The conclusion of this study supports Social Exchange Theory, where flexibility and leader support trigger a positive reciprocation in the form of enhanced work-life balance and reduced job stress for Gen-Z.
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