Effect of Green Work-Life Balance and Career Development on Turnover Intention with Employee Engagement as a Mediating Variable

Generation Z is increasingly becoming a dominant force in the workforce, introducing new perspectives on work and evolving expectations of employers. This generational shift significantly influences organizational sustainability, particularly in the retail industry, which is known for its relatively high employee turnover. This research investigates the impact of green work-life balance and career development on turnover intention, with employee engagement serving as a mediating variable among Generation Z employees in Jakarta’s retail sector. A quantitative research method was adopted, utilizing the primary data obtained through a questionnaire distributed to 140 participants. The data were analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) approach. The findings reveal that green work-life balance has a negative and significant impact on Turnover Intention, and Career Development also has a negative and significant effect. Additionally, green work-life balance positively and significantly influences Employee Engagement and Career Development also has a positive and significant effect on Employee Engagement. Employee Engagement had a negative and significant effect on Turnover Intention. Mediation analysis indicates that Employee Engagement significantly and negatively mediates the relationship between green work and life balance and turnover intention, as well as the relationship between Career Development and Turnover Intention. These findings suggest that that enhancing green work-life balance and career development can strengthen employee engagement and reduce turnover intention among Generation Z employees in the retail sector. 

Introduction

Changes in workforce characteristics in the modern era have influenced organizational dynamics and human resource management strategies. Generation Z, born between 1997 and 2012, has begun to enter the workforce with values, expectations, and preferences that differ from previous generations.

Being born into the digital era makes Generation Z highly adaptable to various situations. This has shaped them into an adaptive generation, but with different work expectations, such as flexibility, work-life balance, and sustainability. Generation Z places greater emphasis on personal well-being and tends to reject the “hustle culture” embraced by earlier generations (Twenge, 2017). They do not work merely for income, but seek meaningful jobs that offer balance and flexibility.

The phenomenon of turnover intention is reflected in the fact that its rate has reached 10% since Generation Z has entered the workforce (Delotte in Pinandito & Savira (2022)). A turnover rate is considered high when it exceeds 10% (Jooet al., 2015). The retail industry has the highest turnover rate, reaching 60% (Bendanet al., 2025). Forbes.com (2022)’s retail turnover rates were 42%, 45% in 2019, and 57% in 2016, 2019, and 2020, respectively. These figures indicate a consistent upward trend in turnover in the retail industry. Furthermore, LinkedIn data show that the global retail industry experienced a turnover rate of 11.8% between July 2021 and June 2022 (LinkedIn, 2022).

Linet al. (2024) Green Work-Life Balance enhances sustainability performance and employee retention through green organizational culture and innovation, while also strengthening employee engagement. Generation Z tends to be more loyal when they perceive that their work aligns with the sustainability values they believe in. However, if companies fail to meet these expectations, including flexible working arrangements and career development opportunities, employee engagement may decline, leading to increased turnover intention.

According to Fig.1, data from MarkPlus Inc. (2022) the Employer Branding Index, 53.5% of Generation Z considered career advancement as the main factor when choosing a workplace, followed by additional benefits (48.7%), healthy work environment (48.7%), salary (44.3%), and self-development opportunities (36.6%). These findings indicate that Generation Z is a future-oriented generation that highly values career growth opportunities before deciding to join an organization.

Fig. 1. Main factors in job selection among generation Z. Source: MarkPlus Employer Branding Index research results, 2022.

Employee Engagement functions as a key factor in strengthening the connection between green work and life balance and career development and in reducing Turnover Intention. Employee involvement in sustainability initiatives can increase employees emotional connection with the organization by up to 43%, creating a stronger sense of belonging to the company (McEwan, 2023). When employees feel that their work contributes to broader sustainability goals, they are motivated to grow professionally and remain with the organization.

In addition, the authors conducted a pre-survey by distributing questionnaires to 30 Generation Z employees, as shown in Table I.

Table I. Pre-Survey of Turnover Intention

Statement	Yes	No
I feel that my job supports sustainability and allows me to effectively separate work time from personal time.	27%	73%
I intend to stay with this company in the long term because it supports sustainability goals.	20%	80%
I find it easy to build positive relationships with people in the workplace.	70%	30%
I feel that decision-making processes in the organization are conducted transparently.	57%	43%
I believe this job aligns with my personal motivation goals.	60%	40%
I feel that my current job supports the development of my skills.	70%	30%
I find my workload manageable.	60%	40%
I feel that my job reflects my abilities.	70%	30%
I believe my career goals can grow within the company I work for.	27%	73%
I am satisfied with the salary I currently receive.	30%	70%
I feel that my daily workload is excessively heavy.	30%	70%
My supervisor provides instructions that are easy to understand.	50%	50%
I always feel highly motivated to complete tasks at work.	57%	43%
I feel that my supervisor provides sufficient support to help me with my work.	90%	10%

According to the pre-survey data presented in Table II, only 27% of respondents felt that their job supported work-life balance, and only 20% intended to stay with the company in the long term. Additionally, 73% stated that they did not see career growth opportunities in their current organization. These findings indicate a weak perception of Green Work-Life Balance, limited career development prospects, and low employee engagement, all of which can directly contribute to turnover intention among Generation Z employees in the retail sector.

Table II. Relevance and Research Gap

Research gap	Researcher	Result
The effect of green work-life balance on turnover intention	Handayani et al . (2024)	Positive impact
	Aga (2023)	Negative impact
The effect of career development on turnover intention	Wati & Ardiansyah, 2023	Positive impact
	Putra & Widigdo (2021)	Negative impact
Employee engagement as a moderating variable on the effect of turnover intention	Rehatta & Makatita (2023)	Positive impact
	Firdaus et al . (2023)	Negative impact

Furthermore, as a reference for determining the independent and dependent variables, the researchers considered the relevance and research gaps identified in previous studies.

Literature Review

The Effect of Green Work-Life Balance on Turnover Intention

Green work-llife balance (GWLB) refers to the equilibrium between work and personal life that also incorporates environmental sustainability (Tanoto & Erin, 2024). A well-implemented GWLB can reduce employees’ intention to leave the organization, especially among the younger generations, as it aligns with their personal values and goals. This is supported by Tanoto and Erin (2024) the finding that GWLB influences turnover intention with work engagement as a mediating variable. Ulfah (2024) also emphasized that GWLB, along with workload and work environment factors, affects employees’ intentions to leave their jobs.

Based on the aforementioned literature, this hypothesis is established:

• H1: Green work-life balance has a significant negative effect on turnover intention.

The Effect of Career Development on Turnover Intention

Career development provides employees with a clear direction and opportunities for growth, which enhances loyalty and retention. Febriyanthyet al. (2024) affirmed that effective career development increased employee loyalty. Similarly, according to Daewoong and Indrajaya (2022) career development enhances job satisfaction, which helps reduce turnover intention. However, according to Aga (2023), this effect may be strengthened by internal motivations.

Based on the aforementioned literature, this hypothesis is established:

• H2: There is a significant negative effect of Career Development on Turnover Intention.

The Effect of Employee Engagement on Turnover Intention

Employee engagement reflects employees emotional and cognitive involvement in their work. Naufer and Kumar (2020) found that high engagement reduced the intention to leave an organization. Febrianet al. (2024) stated that engagement is a key factor in reducing turnover, whereas according to Janna and Paradilla (2023), dedication and loyalty drive employee retention.

Based on the aforementioned literature, this hypothesis is established:

• H3: There is a significant negative effect of Employee Engagement on Turnover Intention.

The Effect of Green Work-Life Balance on Employee Engagement

GWLB contributes not only to retention, but also to building employee engagement. Pradita (2024) mentioned that a healthy work-life balance enhances job satisfaction, which ultimately strengthens engagement (Jannata & Perdhana, 2022). Lencho (2020) found that GWLB has a direct effect on employee engagement, both independently and through the mediation of job satisfaction.

Based on the aforementioned literature, this hypothesis is established:

• H4: Green work-life balance has a significant positive effect on employee engagement.

The Effect of Career Development on Employee Engagement

Career development fosters a sense of value and contribution to the organization. Sholikhahet al. (2024) stated that good career development strengthened engagement and enhanced commitment. Dhia (2024) and Primadini and Karneli (2023) also found that training and career development helped to establish strong employee engagement.

Based on the aforementioned literature, this hypothesis is established:

• H5: There is a significant positive effect of Career Development on Employee Engagement.

The Effect of Green Work-Life Balance on Turnover Intention through Employee Engagement

GWLB helps to create a balanced work environment, which affects both engagement and retention. Ariefet al. (2021) indicated that GWLB increases engagement and satisfaction, which in turn reduces turnover intention. Although, by Putra and Widigdo (2021), it has been suggested that this mediating relationship is not fully established, Putriet al. (2024) employee engagement can serve as an effective mediator.

Based on the aforementioned literature, this hypothesis is established:

• H6: There is a significant negative effect of the Green Work-Life Balance on Turnover Intention through Employee Engagement as a mediating variable.

The Effect of Career Development on Turnover Intention through Employee Engagement

Engagement fostered through career development reduces employees’ intentions to leave. Bawono and Lo (2020) asserted that engagement strengthens the influence of career development on employees’ decision to stay. Meiliawatiet al. (2022) found that the effect of career development on turnover intention was mediated by engagement.

Based on the aforementioned literature, the following hypothesis is proposed.

• H7: Career Development has a significant negative effect on turnover intention through employee engagement as a mediating variable.

Research Methodology

A quantitative approach is adopted in this study. The target population comprised Generation Z employees working in the retail sector across the DKI Jakarta Region. A purposive sampling technique was applied and a sample size of 140 respondents was calculated using the Slovin formula. Respondents were selected based on the following specific criteria: individuals aged 18 to 26 years (categorized as Generation Z) currently employed in the retail industry. Data analysis was conducted using Structural Equation Modeling - Partial Least Squares (SEM-PLS), utilizing SmartPLS 4.0 software for processing.

Research Results and Discussion

Table III displays the descriptive analysis outcomes for each research variable. According to the table, the dimensions with the highest average scores are Vigor and Absorption under the Employee Engagement variable, each with a mean score of (2.80), indicating that employees feel energized and focused on carrying out their tasks. Meanwhile, the lowest mean score was observed in the alternative dimension of the Turnover Intention variable (1.59), suggesting that employees do not actively seek job opportunities elsewhere.

Table III. Descriptive Analysis of Research Variables

Variable	Dimension	Mean
Green work-life balance (X1)	Involvement balance	2.49
	Satisfaction balance	2.58
	Organizational support	2.55
Career development (X2)	Career clarity	2.39
	Self-development	2.59
	Performance improvement	2.53
Turnover intention (Y)	Thinking of quitting	2.43
	Intention to search for alternatives	2.45
	Intention to quit	2.36
Employee engagement (Z)	Vigor	2.59
	Dedication	2.55
	Absorption	2.61

The average scores for the Green Work-Life Balance variable range from 2.49–2.58. The lowest score was found in the Involvement Balance dimension (2.49), indicating relatively low employee involvement in balancing work and life.

For the Career Development variable, mean scores range from 2.39–2.59. The highest score was recorded in the self-development dimension (2.59), suggesting that employees feel that they have opportunities to enhance their personal competencies in the workplace.

The Turnover Intention variable showed mean scores ranging from 2.36–2.45. The Intention to Quit dimension had the lowest value, with a mean score of 2.36, indicating reflecting relatively low desire to leave.

Meanwhile, Employee Engagement scores range from 2.55–2.61, the highest average scores were found in absorption dimensions (2.61), indicating that employees were energized and highly engaged in their work.

Outer Model

The validation of each indicator’s link to its latent variable relies on convergent validity, for which a factor-loading threshold of 0.70 is applied. Based on Table IV and Fig. 2, all indicators fulfilled this requirement, showing factor loadings above 0.70.

Table IV. Convergent Validity Test Results

Variable	Indicator	Outer loading	Interpretation
Green work-life balance (GWLB)	GWLB 1	0.928	Valid
	GWLB 2	0.908	Valid
	GWLB 3	0.947	Valid
	GWLB 4	0.940	Valid
	GWLB 5	0.928	Valid
	GWLB 6	0.938	Valid
Career development	PK1	0.938	Valid
	PK2	0.941	Valid
	PK3	0.923	Valid
	PK4	0.933	Valid
	PK5	0.906	Valid
	PK6	0.916	Valid
Employee engagement	EE1	0.969	Valid
	EE2	0.916	Valid
	EE3	0.912	Valid
	EE4	0.952	Valid
	EE5	0.924	Valid
	EE5	0.934	Valid
Turnvover intention	TI1	0.911	Valid
	TI1	0.941	Valid
	TI3	0.913	Valid
	TI4	0.950	Valid
	TI5	0.916	Valid
	TI6	0.915	Valid

Fig. 2. PLS algorithm results.

Discriminant validity is evidenced through cross-loading, in which a reflective indicator is considered acceptable when its loading on the intended construct surpasses its loading on other constructs. Table V illustrates that each indicator achieved the highest loading on its designated construct, confirming its strong discriminant validity. Additionally, Table VI reports AVE values greater than 0.50, further supporting the discriminant validity of the model.

Table V. Discriminant Validity (Cross Loading)

Construct	Green work-life balance	Career development	Employee engagement	Turnover intention
GWLB 1	0.928	−0.071	0.546	–0.435
GWLB 2	0.908	−0.054	0.605	−0.474
GWLB 3	0.947	−0.036	0.557	−0.480
GWLB 4	0.940	−0.021	0.594	−0.520
GWLB 5	0.928	−0.100	0.502	−0.437
GWLB 6	0.938	−0.035	0.576	−0.488
PK1	−0.025	0.938	−0.542	–0.484
PK2	−0.074	0.941	0.509	−0.476
PK3	−0.121	0.923	0.456	−0.409
PK4	−0.050	0.933	0.524	−0.488
PK5	−0.025	0.906	0.512	−0.469
PK6	−0.022	0.916	0.529	−0.435
EE1	0.601	0.546	0.969	−0.768
EE2	0.556	0.500	0.916	−0.659
EE3	0.525	0.500	0.912	−0.666
EE4	0.590	0.507	0.952	−0.735
EE5	0.592	0.491	0.924	−0.707
EE5	0.534	0.563	0.934	−0.702
TI1	−0.427	−0.449	−0.665	0.911
TI1	−0.448	−0.448	−0.698	0.941
TI3	−0.475	−0.471	−0.701	0.913
TI4	−0.479	−0.473	−0.724	0.950
TI5	−0.496	−0.410	−0.681	0.916
TI6	−0.492	−0.508	−0.725	0.915

Table VI. AVE Test Result

Variable	AVE
Green work-life balance	0.868
Career development	0.858
Employee engagement	0.873
Turnover intention	0.855

Based on Tabel VII and using Heterotrait-Monotrait Ratio (HTMT) approach, the results of the discriminant validity test demonstrated that all construct pairs exhibited HTMT values below the 0.90 cutoff, indicating acceptable discriminant validity.

Table VII. Ratio Heterotrait Monotrait (HTMT) Test Result

Construct	GWLB	PK	EE	TI
Green work-life balance
Career development	0.062
Employee engagement	0.623	0.571
Turnover intention	0.523	0.513	0.780

Construct validity is considered acceptable when a construct’s correlation with itself is higher than that with other constructs in the model. As shown in Table VIII, each construct demonstrates stronger correlations with itself than with the other constructs, thereby confirming that all constructs exhibit satisfactory validity.

Table VIII. Fornell-Larcker Test Result

Construct	GWLB	PK	EE	TI
Green work-life balance	0.932
Career development	−0.055	0.926
Employee engagement	0.607	0.554	0.935
Turnover intention	−0.509	−0.498	−0.757	0.925

As shown in Table IX, the construct reliability was evaluated using Cronbach’s Alpha and Composite Reliability, with a minimum acceptable value of 0.70. The results reveal that all the variables have reliability coefficients above 0.95, confirming that the instruments used in this study are highly reliable.

Table IX. Composite Reliability and Cronbach’s Alpha Test Result

Variable	Cronbach’s alpha	Composite reliability	Interpretation
Green work-life balance	0.970	0.971	Reliable
Career development	0.967	0.968	Reliable
Employee engagement	0.971	0.972	Reliable
Turnover intention	0.966	0.967	Reliable

Inner Model

The R-square values are presented in Table X, represents the degree to which independent variables explain the variance of the dependent variable and is commonly used to assess the goodness-of-fit in PLS-SEM models. An R-square of 0.75 indicates strong explanatory power, 0.50 suggests moderate explanatory power, and 0.25 reflects a weak model, respectively.

Table X. R-Square Test Result

Variable	R-Square	R-Square adjusted
Turnover intention	0.756	0.750
Employee engagement	0.537	0.530

The f-square test is used to evaluate whether the exogenous latent variables have a meaningful impact on the endogenous variables. According to recommended guidelines, an f-square value greater than 0.02 indicates a small effect, greater than 0.15 indicates a medium effect, and greater than 0.35 indicates a large effect. The results of this test are presented in Table XI.

Table XI. F-Square Test Result

Construct	Employee engagement	Turnover intention	Criteria EE	Criteria TI
Green work-life balance	0.623	0.578	Strong	Strong
Career development	0.600	0.478	Strong	Strong
Eployee engagement		0.168		Strong

In a structural model shown in Table XII, predictive relevance (Q²) shows the model’s ability to predict the observed outcomes. When Q² falls between 0 and 1, it indicates that the model is predictively valid for the associated construct.

Table XII. Predictive-Relevance (Q²) Test Result

Variable	SSO	SSE	Q² (=1-SSE/SSO)
Green work-life balance	840.000	323.412	0.615
Career development	840.000	840.000	0.000
Employee engagement	840.000	416.570	0.504
Turnover intention	840.000	840.000	0.000

As shown in Fig. 3, hypothesis testing was performed using bootstrapping. Evaluation of statistical significance relies on coefficient estimates and t-statistics obtained from bootstrapping results. A hypothesis is regarded as significant if its t-statistic is above 1.96 and the p-value is less than 0.05.

Fig. 3. Bootstrapping test result.

The analysis presented in Table XIII reveals that Green Work-Life Balance has a statistically significant and negative influence on Turnover Intention, with a path coefficient of −0.229 and a p-value of 0.014. This finding implies that a higher level of work-life balance is associated with reduced intention among employees to leave the organization.

Table XIII. Hypothesis Test Results for Direct Effect

Variable	Original sample	T-Statistics	P Value	Interpretation
Work-Life_Balance -> Turnover_Intention	−0.229	2.464	0.014	Negative, Significant
Career_Development -> Turnover_Intention	−0.243	2.485	0.013	Negative, Significant
Work-Life_Balance -> Employee_Engagement	0.639	13.520	0.000	Positive, Significant
Career_Development -> Employee_Engagement	0.590	13.013	0.000	Positive, Significant
Employee_Engagement -> Turnover_Intention	−0.484	4.109	0.000	Negative, Significant

Likewise, Career Development also has a negative and significant impact on Turnover Intention, as indicated by its coefficient of −0.243 (p = 0.013), indicating that better career growth opportunities contribute to reducing employees’ intention to quit.

Likewise, Green Work-Life Balance shows a positive and significant relationship with Employee Engagement, as evidenced by an original sample value of 0.639 (p-value = 0.000). This indicates that a work environment that supports life balance encourages employees to become more emotionally and cognitively involved in their work.

Career Development has a significant positive effect on Employee Engagement, with an original sample value of 0.590 (p-value = 0.000). This finding indicates that employees’ who perceive greater opportunities for career growth tend to exhibit higher levels of engagement in their work.

The results also show that Employee Engagement exerts a negative and statistically significant influence on Turnover Intention, as reflected by the original sample value of −0.484 and p-value of 0.000. This implies that employees who are more engaged are less likely to consider leaving the organization.

Findings from Table XIV, the indirect effect analysis demonstrate that Employee Engagement serves as a mediator in the relationship between green work and life balance and turnover intention, with a reported coefficient of −0.309 (p = 0.000). This indicates that an improved work-life balance enhances engagement levels, which subsequently leads to a decrease in employees’ intention to resign.

Table XIV. Hypothesis Test Results for Indirect Effect

Variable	Original Sample	T-Statistics	P Value	Interpretation
Green Work-Life_Balance -> Employee_Engagement -> Turnover_Intention	−0.309	3.706	0.000	Negative, Significant
Career_Development -> Employee_Engagement -> Turnover_Intention	−0.285	4.080	0.000	Negative, Significant

Additionally, the results show that Employee Engagement mediates the effect of Career Development on Turnover Intention, with a coefficient of −0.285 (p = 0.000). This suggests that, within the context of this study, Career Development can lower employees’ intention to leave the organization by enhancing their level of engagement.

Conclusion

The findings of this research reveal the following:

1. Green Work-Life Balance exerts a statistically significant negative influence on Turnover Intention. This indicates that employees who experience a well-managed balance between their professional and personal lives are less inclined to consider leaving the organization.

2. Career Development demonstrates a statistically significant negative effect on Turnover Intention. When employees perceive clear opportunities for career progression and personal development, their intention to leave the organization tends to decrease.

3. Green Work-Life Balance has a positive and significant effect on Employee Engagement. A workplace environment that facilitates work-life harmony fosters greater emotional involvement and productive participation among employees.

4. Career Development exerts a positive and significant effect on Employee Engagement. The availability of career advancement opportunities increases employee involvement, as individuals feel valued and see a promising future within the organization.

5. Employee Engagement significantly and negatively affects Turnover Intention, implying that engaged employees are more committed to and less likely to seek employment elsewhere.

6. Employee Engagement plays a significant partial mediating role in the relationship between green work and life balance and turnover intention, where increased engagement, driven by a supportive work-life balance, contributes to lower intentions to leave.

7. Employee Engagement also significantly negatively partially mediates the effect of Career Development on Turnover Intention. This suggests that although career development initiatives increase engagement, which helps reduce turnover intention, as employees become more emotionally attached and motivated to remain in the organization.

Grounded in the preceding findings, the study offers the following practical recommendations:

1. Concerning the Green Work-Life Balance variable, based on the discriminant validity test (cross-loading), the item with the highest value is GWLB6: and “psychological counseling programs and regular health check-ups at the office help me maintain mental and physical balance while working.” The researcher recommends that retail companies employing Generation Z strengthen their support for employees’ mental and physical well-being by providing access to counseling services, regular health screenings, and other wellness initiatives.

2. For the Career Development variable, based on the discriminant validity test (cross-loading), the item with the highest value is PK6: “I am more consistent in arriving on time, meeting deadlines, and showing commitment to company values.” The researcher suggests that retail companies employing Generation Z emphasize career development that not only focuses on technical skills, but also cultivates positive work attitudes and commitment to organizational culture.

3. In future studies, researchers are encouraged to expand the scope across regions and industries to improve generalizability. Adding variables such as job satisfaction, leadership style, or organizational climate may offer deeper insights into factors affecting turnover intention. A mixed-methods or qualitative approach could also help explore employee engagement and work-life balance more comprehensively.

Conflict of Interest

Conflict of Interest: The authors declare that they do not have any conflict of interest.