Influence of Work Discipline and Job Satisfaction on Employee Loyalty: The Moderating Role of Leadership Style Among Generation Z in the Garment Industry

Abstract

This study aims to analyze the influence of work discipline and job satisfaction on employee loyalty, with leadership style as a moderating variable, particularly among Generation Z in the garment industry. The research is motivated by the declining loyalty of young workers in labor-intensive sectors, which demands adaptive managerial approaches. A quantitative method was applied through a survey of 150 employees at CV Raxsa.CO Apparel in Yogyakarta. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS 4.0. The findings reveal that both work discipline and leadership style have a positive and significant effect on employee loyalty. Conversely, job satisfaction does not have a significant direct impact on loyalty. However, leadership style significantly strengthens the relationship between job satisfaction and loyalty, but does not moderate the effect of work discipline on loyalty. The novelty of this research lies in its focus on Generation Z within the context of the local garment industry, as well as its integrative approach involving leadership style as a moderating variable. Practically, this study provides useful insights for human resource managers in designing employee retention strategies based on discipline, participative leadership, and an understanding of generational values. In conclusion, employee loyalty among Generation Z cannot be built solely through job satisfaction; it requires inspirational leadership and a disciplined work culture.