Retaining Generation Z employees is a strategic human resource management challenge amid changing work expectations, the demand for work–life balance, and the need for meaningful employee engagement. This article aims to synthesize the roles of work–life balance and employee engagement in Generation Z employee retention and identify implications for strategic human resource management. It adopts a focused narrative literature review, examining relevant academic publications, primarily Indonesian empirical studies published in 2023–2026 alongside foundational theoretical literature. Across various contexts, the reviewed evidence generally associates work–life balance and employee engagement with stronger retention or lower turnover intentions. Nevertheless, the relationships vary across industries: work–life balance may operate as a direct predictor or through mediating mechanisms, but does not necessarily strengthen other relationships when modeled as a moderator. Based on this synthesis, the article proposes an integrated human resource strategy involving flexible work arrangements, workload management, supervisor support, meaningful work, career development, and retention monitoring. The paper concludes that Generation Z retention policies should be contextual, evidence-informed, and regularly evaluated. As a conceptual review, this study does not empirically establish causality.
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