The hospitality industry confronts persistent challenges in retaining Generation Z employees, who prioritize value alignment with their employing organizations particularly with respect to environmental sustainability. This study investigates the effect of green recruitment on person-organization fit (P-O fit) and Generation Z employee retention in star-rated hotels. A quantitative cross-sectional survey design was employed, with data collected from 187 Generation Z employees (aged 18–27 years) working in 3–5 star hotels in Semarang Regency, Indonesia, using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0 software. The results demonstrate that green recruitment has a significant positive effect on employee retention (β = 0.243; p < 0.001) and on person-organization fit (β = 0.684; p < 0.001). Person-organization fit further exerts a significant positive effect on retention (β = 0.505; p < 0.001) and partially mediates the relationship between green recruitment and retention (indirect effect = 0.345; p < 0.001; VAF = 58.7%). The research model explains 50.7% of the variance in employee retention. These findings contribute theoretically by integrating Signaling Theory with Person-Environment Fit Theory within the Green Human Resource Management (GHRM) context. Practically, the study recommends that hotel management embed sustainability values throughout employer branding and recruitment processes to enhance value congruence and improve the retention of Generation Z talent.
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