This study examines the effects of employee recognition and work-life balance on organizational effectiveness, with work engagement as a mediating variable among Generation Y and Z nurses at Rumah Sakit Islam Sunan Kudus. The research addresses increasing work demands faced by young nurses, which may influence engagement and organizational effectiveness. Using a quantitative explanatory approach, data were collected from 135 respondents through purposive sampling and analyzed using covariance-based Structural Equation Modeling (SEM) with AMOS. The findings reveal that employee recognition does not directly affect organizational effectiveness but significantly influences work engagement. Work-life balance significantly affects both work engagement and organizational effectiveness. Work engagement also significantly influences organizational effectiveness and mediates the relationships between employee recognition, work-life balance, and organizational effectiveness. These findings emphasize the importance of strengthening work engagement to enhance organizational effectiveness.
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