Do Generational Cohorts Matter? Moderating Effects of Generation X, Y, and Z on Job Satisfaction and Engagement in the Industrial Forest Plantation Sector

Abstract

The advancement of digital technology and shifts in workforce demographics influence various industrial sectors including Industrial Forest Plantation (Hutan Tanaman Industri) companies in Indonesia and impact numerous aspects, such as work systems, workplace culture, and employee behavior. This research aims to assess the effect of the Work Environment and Digital Literacy on Job Satisfaction and Employee Engagement, with Generations (X, Y, Z) serving as moderating variables in HTI companies in Indonesia. Data was gathered through an online survey involving 569 respondents who represent employees of HTI companies in Indonesia, data was analyized by Partial Least Square-Stuctural Equation Model (PLS-SEM) by SmartPLS and the results of the study revealed that Digital Literacy and Workplace Environment significantly influence both Job Satisfaction (R² = 0,573) and Employee Engagement (R² = 0,802)  among Generations X, Y, and Z. Furthermore, Job Satisfaction was found to be the strongest predictor of Employee Engagement (path coefficient = 0.710, p < 0.001). The moderating effect of generational cohort was significant on the relationship between Workplace Environment and both Job Satisfaction and Employee Engagement, indicating that generational differences—especially among Generation Z—play a role in how workplace settings are perceived and responded to. However, no significant moderating effect was found between generational cohort and Digital Literacy, suggesting that technology adoption affects employees across generations more uniformly. The outcomes of this study offer strategic insights for plantation companies in Indonesia to develop human resource management strategies and improve employee engagement.