DefinePK

Abstract

This study explores the factors which influences employee retention of generation Z within Karachi Pakistan, focusing on career benefits, employer branding and employee retention. Using a quantitative approach and a sample of 109 in which 93 where Gen Z employees, collected via online survey and snowball sampling, the study employed Structural Equation Modeling (SEM) via SmartPLS for hypothesis testing. The results revealed that career benefits significantly and positively predict career commitment and employee retention, establishing it as the strongest determinant. Employer branding also showed a significant direct effect on retention but did not moderate the relationship between career commitment and retention. Interestingly, career commitment was not found to significantly mediate the relationship between career benefits and retention, this could be due to the early career stage of most Gen Z participants. These findings support Social Exchange Theory in explaining Gen Z retention behavior while challenging assumptions of Brand Equity Theory. The study contributes to the limited literature on Gen Z retention in emerging markets and offers practical recommendations for organizations to tailor their HR strategies to meet the unique needs and expectations of this new workforce generation.