The Impact of Work Engagement and Digital Competence on Generation Z’s Work Productivity in South Tangerang City

Abstract

The rapid advancement of digital technology has fundamentally transformed the modern workplace, requiring employees to possess strong digital competencies to remain productive and competitive. Generation Z, born between 1997 and 2012, has grown up in a digital environment and is often perceived as technologically proficient. However, digital skills alone are insufficient to ensure high work productivity, as psychological factors such as work engagement also play a critical role. This study aims to examine the impact of digital competence and work engagement on the work productivity of Generation Z employees in South Tangerang City. A quantitative explanatory approach was employed using a survey method. Data were collected from 100 Generation Z employees across various industries using structured questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that digital competence has a significant positive effect on work engagement and work productivity. Work engagement also significantly influences productivity and partially mediates the relationship between digital competence and productivity. These results indicate that productivity among Generation Z employees is driven by the integration of technological capability and psychological engagement. The study highlights the importance of developing digital competencies alongside engagement-oriented human resource strategies to enhance workforce productivity in the digital era.