Work Engagement as a Mediator of Influence Digital Leadership Towards Sustainable Employability of Gen Z Employees in Bali Province

The rapid development of digital technology has transformed organizational work systems and increased the demand for adaptive human resources, particularly among Generation Z employees who dominate the modern workforce. In this context, digital leadership is considered an important factor in fostering employee engagement and supporting sustainable employability. This study aims to analyze the effect of digital leadership on work engagement and sustainable employability among Generation Z employees in Bali Province, as well as to examine the mediating role of work engagement in the relationship between these variables. This research employed a quantitative approach with an explanatory research design. Data were collected from 207 Generation Z employees working in Bali through a structured questionnaire distributed online and offline. The sampling technique used purposive sampling, while data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0 software. The results indicate that digital leadership has a positive and significant effect on work engagement. However, work engagement does not significantly affect sustainable employability and is unable to mediate the relationship between digital leadership and sustainable employability. These findings suggest that sustainable employability among Generation Z employees cannot be strengthened solely through work engagement, but also requires organizational support, competency development, and continuous career opportunities. Therefore, organizations should implement adaptive digital leadership strategies and sustainable human resource development programs to enhance long-term employee employability.