​Authentic Leadership, Psychological Capital, and Meaningfulness of Work: Predicting Generation Z Employees' Mental Well-Being

Abstract

This study examined the effects of authentic leadership and psychological capital on the mental well-being of Generation Z employees and investigated the mediating roles of psychological capital and meaningfulness of work. Given Generation Z’s increasing presence in the workforce and concerns regarding employee well-being, this study employed a quantitative approach using a cross-sectional survey of 300 Generation Z employees in Batam, Indonesia, selected through purposive sampling. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 3.0. The structural model demonstrated substantial explanatory power for mental well-being (R² = 0.747), with predictive relevance indicated by Q² = 0.582. Authentic leadership positively affected mental well-being (β = 0.485, p < 0.001) and psychological capital (β = 0.563, p < 0.001), but did not significantly affect the meaningfulness of work (β = 0.068, p = 0.235). Psychological capital significantly mediated the relationship between authentic leadership and mental well-being (β = 0.215, p < 0.001), whereas meaningfulness of work did not (β = 0.015, p = 0.246). The findings highlight the importance of authentic leadership in strengthening psychological resources associated with Generation Z employees’ mental well-being and provide implications for leadership development in organizations.