UNDERSTANDING GEN Z RETENTION: HOW CAREER BENEFITS INFLUENCE COMMITMENT AND RETENTION UNDER EMPLOYER BRANDING

Abstract

This study investigates the factors influencing employee retention among Generation Z in Lahore, Pakistan, with a focus on career benefits, employer branding, and career commitment. Employing a quantitative approach, data were collected from 109 respondents—including 93 Gen Z employees—via online surveys using snowball sampling. Structural Equation Modeling (SEM) through SmartPLS was utilized to test the hypothesized relationships. Findings indicate that career benefits are the strongest predictor, significantly enhancing both career commitment and employee retention. Employer branding demonstrated a direct positive effect on retention but did not moderate the relationship between career commitment and retention. Contrary to expectations, career commitment did not significantly mediate the relationship between career benefits and retention, likely reflecting the early career stage of the majority of Gen Z participants.

Grounded in Social Exchange Theory, the results provide insights into Gen Z retention behaviors while challenging some assumptions of Brand Equity Theory. The study contributes to the emerging literature on Gen Z retention in developing markets and offers practical guidance for organizations seeking to align HR strategies with the expectations of this new workforce generation.