Danadyaksa: Post Modern Economy Journal
Vol. 4 No. 2 (2026): Post Modern Economy Journal

The Mediating Role of Self-Efficacy in the Effects of Compensation, Rewards, and the Work Environment on Work Commitment Among Generation Z Employees in South Tangerang City

Yasmin Kusumawati (Universitas Muhammadiyah Jakarta, Jakarta, Indonesia)
Nazifah Husainah (Universitas Muhammadiyah Jakarta, Jakarta, Indonesia)
Usep Abdul Matin (Universitas Islam Negeri Syarif Hidayatullah, Jakarta, Indonesia)



Article Info

Publish Date
10 Oct 2026

Abstract

This study examines the mediating role of self-efficacy in the relationships between compensation, rewards, the work environment, and work commitment among Generation Z employees in South Tangerang City. An associative quantitative research design was employed. Data were collected from 239 Generation Z respondents and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 3. The results showed that compensation did not significantly affect self-efficacy (t = 1.3451, p = 0.1792), and rewards did not significantly affect self-efficacy (t = 1.5558, p = 0.1204). The work environment significantly affected self-efficacy (t = 2.8679, p = 0.0043). Self-efficacy significantly affected work commitment (t = 4.2623, p < 0.001). Compensation and the work environment also had significant direct effects on work commitment (t = 3.4120, p = 0.0007; t = 3.3489, p = 0.0009, respectively), whereas rewards did not (t = 1.7975, p = 0.0729). Self-efficacy did not mediate the effects of compensation or rewards on work commitment. However, self-efficacy significantly mediated the effect of the work environment on work commitment (t = 2.5091, p = 0.0124). These findings highlight the importance of a supportive work environment and employees’ psychological resources in strengthening sustainable work commitment among Generation Z employees.

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Journal Info

Abbrev

danadyaksa

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Danadyaksa: Post Modern Economy Journal is an open-access, peer-reviewed journal whose objective is to publish original research papers related to the economy, Sharia economy, and business issues. This journal is also dedicated to disseminating the published articles freely for international ...