The Influence of Smart Working on Gen Z Engagement and Retention in the United Arab Emirates: The Moderating Role of Communication and the Mediating Role of Work–Life Balance

Abstract

This study investigates the impact of smart working on Gen Z engagement and retention in the United Arab Emirates, considering the moderating role of communication and the mediating role of work–life balance (WLB). The research is grounded in five theoretical frameworks: the Resource-Based View (RBV), Social Exchange Theory (SET), Communication Accommodation Theory (CAT), Conservation of Resources (COR) Theory, and Job Embeddedness Theory. Together, these theories offer insights into the behavioural, psychological, and organisational dynamics shaping Gen Z’s workplace experiences. Adopting a positivist paradigm and a deductive quantitative approach, the study utilised a structured survey instrument with items adapted from validated scales. A pilot test ensured reliability and clarity. Data were collected from 394 Gen Z employees across UAE-based organisations and analysed using Jamovi and SmartPLS 4, employing structural equation modelling (SEM) to assess direct, mediating, and moderating relationships. The findings revealed that smart working has a significant negative direct effect on Gen Z engagement but a positive effect on retention. WLB showed an inconsistent partial mediation effect in the relationship between smart working and engagement and partially mediated the relationship between smart working and retention. Communication significantly moderated smart working’s influence on WLB, engagement, and retention, highlighting its amplifying role. The study contributes empirically to the limited UAE-focused research on smart working and Gen Z. Practically, it guides organisations in crafting policies and practices aligned with Gen Z’s needs, enhancing engagement, satisfaction, and retention in the digital era.