Why Do Generation Z Employees Stay or Leave? Exploring Organizational Climate and Workplace Loneliness: A Study of Generation Z Employees in Jabodetabek’s Manufacturing Sector

Abstract

Purpose – This study aims to analyze the influence of organizational climate on organizational commitment and turnover intention, with workplace loneliness serving as a mediating variable among Generation Z employees in the private manufacturing industry in the Greater Jakarta area (Jabodetabek).

Methodology – The study employed a quantitative approach with a conclusive research design and purposive sampling technique involving 289 Generation Z employees working in Indonesia’s manufacturing subsectors. The data were analyzed using SPSS 27 for descriptive statistical analysis and LISREL 8.80 through Structural Equation Modeling (SEM).

Findings – The results show that organizational climate positively and significantly affects organizational commitment and negatively affects workplace loneliness. Most importantly, workplace loneliness partially mediates the relationship between organizational climate and organizational commitment, indicating that a supportive organizational climate strengthens Generation Z employees’ commitment both directly and indirectly by reducing feelings of loneliness at work. Workplace loneliness also negatively and significantly affects organizational commitment and positively affects turnover intention. However, organizational climate has no significant direct effect on turnover intention, and workplace loneliness does not mediate this relationship. Overall, the findings suggest that organizational climate plays a more important role in strengthening organizational commitment than directly reducing turnover intention among Generation Z employees in the private manufacturing sector.

Originality – This study extends prior research by examining workplace loneliness as a mechanism linking organizational climate to both multidimensional organizational commitment and turnover intention among Generation Z employees in Indonesia’s private manufacturing sector. The findings provide further empirical insight into how organizational climate shapes psychological and behavioral outcomes within this generational cohort and highlight the practical importance of fostering supportive workplace relationships.