This study examines the effects of Flexible Working Arrangements and Digital Fatigue on Employee Engagement, with Job Satisfaction as a mediating variable among Generation Z employees in a public financial institution. A quantitative approach was employed using data collected through questionnaires from 182 respondents selected through purposive sampling. The data were analyzed using partial least squares structural equation modeling. The findings indicate that Flexible Working Arrangements positively affect Employee Engagement and Job Satisfaction, whereas Digital Fatigue negatively affects both variables. Job Satisfaction positively affects Employee Engagement and partially mediates the effects of Flexible Working Arrangements and Digital Fatigue on Employee Engagement. These findings emphasize the importance of providing appropriate work flexibility while controlling digital demands to enhance employees’ satisfaction and engagement. The study also supports Social Exchange Theory by demonstrating that positive organizational practices encourage favorable employee responses, whereas excessive digital demands may weaken them.
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