Designing Future-Ready Workplaces: How Gen Z's Preferred Work Type Influence Retention Intention; Mediating Role of Perceived Autonomy in Malaysian SMEs

Designing Future-Ready Workplaces: How Gen Z's Preferred Work Type Influence Retention Intention; Mediating Role of Perceived Autonomy in Malaysian SMEs | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Designing Future-Ready Workplaces: How Gen Z's Preferred Work Type Influence Retention Intention; Mediating Role of Perceived Autonomy in Malaysian SMEs MOHAMMED R M SALEM This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7147082/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 26 Aug, 2025 Read the published version in Future Business Journal → Version 1 posted You are reading this latest preprint version Abstract This study investigates the extent to which Generation Z employees’ preferred work types namely remote work, hybrid arrangements, flexible hours, and on-site settings influence their intention to remain within small and medium-sized enterprises (SMEs) in Malaysia. Central to this inquiry is the mediating role of perceived autonomy in shaping this relationship. Drawing upon a quantitative, cross-sectional survey design, data were collected from a sample of 256 Gen Z employees across various Malaysian SMEs. The analytical framework employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine both direct and mediated effects. The findings reveal that all four work type preferences exert significant influence on both perceived autonomy and retention intention, with hybrid work emerging as the most impactful configuration. Furthermore, the mediation analysis establishes that perceived autonomy partially mediates the relationship between preferred work types and employee retention, underscoring its function as a pivotal psychological mechanism that connects structural workplace features to behavioral outcomes. This study represents one of the earliest empirical contributions to the literature by examining how the alignment between work preferences and autonomy perceptions affects Gen Z retention within the context of emerging-market SMEs. The findings yield actionable implications for SME leaders, emphasizing the importance of designing hybrid and autonomy-enhancing work environments to foster long-term organizational commitment among younger workforce cohorts. Generation Z Preferred Work Types Perceived Autonomy Retention Intention Malaysian SMEs 1. Introduction The emergence of Generation Z (born between 1997 and 2012) in the global labor force is compelling organizations to reevaluate conventional employment structures. In Malaysia, where small and medium-sized enterprises (SMEs) account for over 97% of all registered businesses and employ more than seven million individuals, the integration of Gen Z employees presents both strategic opportunities and managerial challenges. Shaped by rapid technological evolution, the COVID-19 pandemic, and shifting societal values surrounding autonomy and mental well-being, Gen Z workers bring distinct expectations regarding communication, work styles, and organizational purpose. Their growing presence in the Malaysian workforce has intensified the need to design work environments that align with these generational preferences while sustaining productivity and cohesion. Despite their increasing numbers, Gen Z employees in Malaysia have emerged as a particularly vulnerable group with respect to job retention. Multiple labor market studies and human resource reports indicate that this cohort experiences not only elevated termination rates but also exhibits higher rates of voluntary turnover. A recent survey by Hiredly ( 2025 ) reported that more than 60% of Malaysian employers had terminated Gen Z workers in the past year, often citing deficiencies in professionalism, communication, and adaptability to traditional workplace norms. Similarly, Deloitte Malaysia (2023) found that 84% of Gen Z and Millennial employees would consider resigning if required to return to fully on-site work underscoring a growing disconnect between organizational practices and generational work values. Moreover, a study by Randstad ( 2022 ) revealed that 28% of Gen Z employees left their roles due to a lack of social connection or exposure to toxic workplace cultures, highlighting the importance of not only flexibility but also meaningful interpersonal engagement in workplace settings. Beyond retention, employers also report challenges in performance and integration. Recent findings suggest that 74% of business leaders perceive Gen Z employees as “difficult to work with,” while 12% of hires from this generation were reportedly dismissed within the first week of employment (HiBob, 2024 ). These observations suggest a widening structural misalignment: although Gen Z employees tend to be digitally fluent and well-educated, they often struggle to thrive in conventional workplace models particularly within SMEs that maintain hierarchical structures and lack the digital flexibility Gen Z increasingly demands. This disconnect raises urgent questions about the evolving nature of work: What employment models effectively support Gen Z’s expectations and capabilities? How can SMEs redesign work arrangements to simultaneously enhance autonomy, retention, and performance? Designing future-oriented workplaces necessitates a fundamental shift in both where and how work is executed. For Generation Z, autonomy defined as the degree of control over when, where, and how tasks are completed has become a central determinant of job satisfaction and organizational commitment. Flexible work arrangements such as remote work, hybrid models, and adjustable hours are no longer viewed as perks but as essential conditions. Yet, the implementation of such practices remains uneven among Malaysian SMEs, many of which continue to operate under rigid administrative structures. Without adapting to these changing preferences, organizations face elevated risks of turnover, disengagement, and diminished productivity. As the future of work becomes increasingly individualized and autonomy-driven, understanding the relationship between preferred work types and perceived autonomy is essential to developing effective retention strategies. Employee retention among Generation Z has thus emerged as a critical concern within human resource management. A growing body of research emphasizes the significance of aligning work design with employee preferences to mitigate turnover. Gen Z employees, who exhibit a strong inclination toward flexibility, work-life balance, and technological integration, are more likely to remain in organizations that accommodate preferred work models such as remote, hybrid, or flexible-hour arrangements (Ipsen et al., 2022 ; Laker et al., 2022 ). Flexible work designs have been shown to enhance well-being and reduce voluntary exits among younger workers (Wang et al., 2021 ). Laker et al., ( 2022 ), for example, found that congruence between personal preferences and work conditions significantly improved retention among early-career professionals. In the Southeast Asian context, Tan and Adamu ( 2023 ) observed that Gen Z employees in Malaysian SMEs demonstrate higher loyalty and reduced intention to quit when provided with autonomy over work location and schedule. Despite these findings, existing literature often treats work flexibility and retention as discrete phenomena, without exploring the psychological mechanisms such as perceived autonomy that mediate this relationship. Furthermore, much of the current research is grounded in developed economies, leaving a notable gap in understanding how these dynamics operate in emerging markets like Malaysia, where organizational resources are often constrained and employee turnover carries significant operational costs. This study is grounded in Self-Determination Theory (SDT), which identifies autonomy as a fundamental psychological need vital for motivation, well-being, and sustained behavioral commitment (Deci & Ryan, 2000 ). According to SDT, when individuals experience autonomy in their roles meaning they perceive volition and control they are more likely to develop intrinsic motivation and maintain long-term engagement (Gagné & Deci, 2005 ). The framework is particularly relevant for Generation Z, whose career choices are strongly influenced by values of personal agency and purpose. Complementing this approach is the Job Demands-Resources (JD-R) model, which emphasizes autonomy as a pivotal job resource that buffers against job demands and predicts favorable outcomes, including increased engagement and reduced turnover intentions (Bakker & Demerouti, 2017 ). Prior studies have applied SDT in diverse sectors to demonstrate how autonomy-supportive environments can reduce attrition and enhance satisfaction (Su & Reeve, 2011 ). In the Malaysian SME sector where formal HR systems are often underdeveloped managerial support for autonomy may serve as a cost-effective mechanism to strengthen Gen Z retention. Both SDT and JD-R therefore provide a robust theoretical basis for examining autonomy as a mediator between preferred work structures and retention outcomes. This study contributes to both academic and practitioner-oriented discourses by investigating a timely and underexplored issue: how alignment between Generation Z’s preferred work types and perceived workplace autonomy influences employee retention within Malaysian SMEs. As Gen Z becomes a dominant component of the workforce in the coming decade, developing evidence-based strategies to enhance their retention is critical for organizational sustainability. Unlike previous research, which often examines work preferences and job satisfaction in isolation, this study explicitly integrates the mediating role of autonomy to provide a more nuanced understanding of retention behavior. In doing so, it addresses key empirical and theoretical gaps, particularly within the context of resource-constrained, emerging economies. For practitioners, the study offers actionable insights for redesigning HR policies and work environments to foster stronger retention outcomes among Gen Z employees. Specifically, it identifies which work modalities remote, hybrid, flexible-hour, or on-site are most effective when paired with autonomy-enhancing practices. The remainder of this paper is structured as follows: the next section presents a comprehensive review of the relevant literature, followed by the development of hypotheses and the proposed conceptual framework. Subsequently, the research methodology is outlined, including data collection procedures, sample characteristics, and measurement instruments and analysis techniques. The paper then presents the results of the data analysis, including assessments of the measurement and structural models. Finally, the discussion addresses the theoretical and managerial implications of the findings, identifies key limitations, and suggests directions for future research. 2. Literature review Retention of Generation Z employees has emerged as a pressing issue in human resource literature, with a growing emphasis on understanding the interplay between generational preferences and workplace structures. Several studies have identified that Gen Z, compared to prior generations, places a stronger emphasis on workplace flexibility, autonomy, mental well-being, and digital fluency (Laker et al., 2022 ; Singh et al., 2021 ). Ipsen et al. ( 2022 ) found that flexible work arrangements such as hybrid models and remote options are associated with increased employee well-being and lower turnover rates among younger workers. Similarly, Wang et al. ( 2021 ) highlighted the positive effect of flexible job designs on engagement and retention in digitally competent workforces. While these findings establish a relationship between work preferences and retention, they are often drawn from studies conducted in large corporations and developed economies. In the context of Malaysian SMEs where hierarchical structures and limited resources often restrict implementation of such flexible models these insights may not directly translate. SMEs are typically underrepresented in generational studies despite employing a significant portion of the workforce in developing regions. Moreover, the literature presents conceptual gaps by frequently conflating flexible work arrangements with autonomy, without distinguishing autonomy as a subjective psychological state rather than just a structural feature. Deci and Ryan’s ( 2000 ) Self-Determination Theory (SDT) asserts that autonomy feeling volitional and in control is a fundamental psychological need influencing motivation, well-being, and organizational commitment. Gagné and Deci ( 2005 ) extended this view to workplace settings, showing that autonomy enhances intrinsic motivation and long-term engagement. However, few empirical studies have explicitly tested autonomy as a mediator between preferred work types and actual retention behavior, especially in SMEs. Even within Southeast Asian contexts, most research, such as that by Tan and Adamu ( 2023 ), tends to focus on job satisfaction rather than deeper retention mechanisms. Consequently, despite consensus on the importance of autonomy and flexibility, little is known about how these interact in resource-constrained SME environments. This study seeks to fill that gap by investigating how perceived autonomy mediates the relationship between Gen Z's work preferences and their retention in Malaysian SMEs. 2.1 Hypothesis Development 2.1.1 Preferred Work Type and Retention Retention of Generation Z employees is increasingly shaped by the alignment between individual work preferences and organizational structures. Gen Z workers prioritize flexible arrangements such as remote work, hybrid models, or adjustable schedules as baseline expectations rather than optional perks (Laker et al., 2022 ). When these preferences are not accommodated, dissatisfaction and turnover intentions rise (Singh et al., 2021 ). This highlights the strategic importance of work structure in influencing retention outcomes. According to the Job Demands-Resources (JD-R) model, when employees experience high job resources that align with personal needs such as schedule control and flexibility, they are more likely to remain motivated and engaged (Bakker & Demerouti, 2017 ). Preferred work types act as job resources that reduce strain and support longer-term organizational attachment. Ipsen et al. ( 2022 ) demonstrated that flexible work arrangements during and after the COVID-19 pandemic significantly enhanced employee retention across age groups, especially younger cohorts. Wang et al. ( 2021 ) found that knowledge workers in flexible setups had reduced turnover intentions. However, these studies largely focus on corporate or public-sector contexts in developed economies, leaving SMEs particularly in Southeast Asia less represented in the discourse. Hypothesis 1 (H1): Preferred work types (e.g., remote, hybrid, flexible hours and on-site work) are positively associated with retention intentions among Generation Z employees in Malaysian SMEs. 2.1.2 Preferred Work Type and Perceived Autonomy Flexible work structures are not merely operational mechanisms they also shape how employees psychologically experience their roles. For Gen Z, work formats that align with their values can enhance perceived autonomy, which is essential to workplace satisfaction and self-regulation. When employees can choose when and where to work, they are more likely to feel empowered and self-directed. Self-Determination Theory (SDT) posits that autonomy is a fundamental psychological need that drives intrinsic motivation, engagement, and long-term well-being (Deci & Ryan, 2000 ). Gagné and Deci ( 2005 ) extend this theory to organizational settings, asserting that work environments perceived as autonomy-supportive yield more motivated and committed employees. Preferred work types, therefore, serve as external structures that can satisfy this intrinsic need. Wang et al. ( 2021 ) found that flexible schedules increased perceived autonomy and job satisfaction among digital professionals. Ipsen et al. ( 2022 ) confirmed that flexible work positively affected autonomy across European samples. However, these studies often conflate autonomy with structural flexibility, without measuring the psychological experience of control especially in traditional SME contexts. As Malaysian SMEs often retain rigid supervision norms, the extent to which preferred work types lead to autonomy remains uncertain and worth investigating. Hypothesis 2 (H2): Preferred work types are positively associated with perceived autonomy among Generation Z employees in Malaysian SMEs. 2.1.3 Perceived Autonomy and Retention Autonomy has consistently been identified as a critical determinant of employee engagement and commitment. For Generation Z employees, who value independence, authenticity, and purpose, the perception of autonomy plays a key role in shaping their intention to remain with an organization. When employees feel they have control over how, when, and where they work, they are more likely to internalize work goals and develop a sense of ownership leading to reduced turnover intentions. Self-Determination Theory (Deci & Ryan, 2000 ) posits that autonomy is a fundamental human need, essential for fostering intrinsic motivation and sustained behavioral engagement. In organizational contexts, autonomy enables employees to feel volitional and self-endorsed in their tasks (Gagné & Deci, 2005 ), which contributes to stronger emotional ties to the organization and lower attrition risk. The JD-R model further emphasizes autonomy as a critical job resource that buffers against burnout and supports positive work outcomes (Bakker & Demerouti, 2017 ). Multiple empirical studies support the relationship between perceived autonomy and employee retention. Su and Reeve ( 2011 ) found that autonomy-supportive environments significantly reduced turnover intention across service-sector employees. In digital-native workforces, Wang et al. ( 2021 ) observed that autonomy improved not only satisfaction but also organizational commitment. Despite this, few studies have examined this relationship specifically within Gen Z cohorts or in the SME sector in emerging markets, where managerial autonomy may be constrained. Hypothesis 3 (H3): Perceived autonomy is positively associated with retention intentions among Generation Z employees in Malaysian SMEs. 2.1.4 The Mediating Role of Autonomy While preferred work types such as remote or hybrid models are structurally linked to improved retention, they do not inherently explain why these arrangements influence employee behavior. A key psychological mechanism that may explain this link is perceived autonomy. When employees work in preferred formats, they are more likely to feel trusted and empowered, which in turn fosters deeper engagement and a stronger commitment to remain in the organization. Thus, autonomy may serve as a crucial explanatory pathway between structural work preferences and actual retention behavior. Self-Determination Theory (SDT) explicitly positions autonomy as a mediating psychological need that must be satisfied to achieve motivation and sustained behavioral outcomes (Deci & Ryan, 2000 ). Gagné and Deci ( 2005 ) emphasized that autonomy transforms external structures like flexible schedules into intrinsic motivation and loyalty. Similarly, the Job Demands-Resources (JD-R) model identifies autonomy as a key job resource that enhances employee resilience and attachment, even under high-demand conditions (Bakker & Demerouti, 2017 ). When preferred work types meet this autonomy need, they generate positive psychological states that increase retention likelihood. Although several studies confirm that both work flexibility and autonomy are independently associated with retention (Ipsen et al., 2022 ; Wang et al., 2021 ), few explicitly examine autonomy as a mediating variable. In education and healthcare contexts, autonomy has been shown to mediate between work conditions and motivation (Su & Reeve, 2011 ), but such mediation effects remain underexplored in Gen Z workplace studies especially within SMEs. The limited empirical attention to autonomy as a mechanism in SME contexts leaves a critical gap in both theory and practice. Hypothesis 4 (H4): Perceived autonomy mediates the relationship between preferred work type and retention among Generation Z employees in Malaysian SMEs. 3. Methodology 3.1 Research Design This study adopts a quantitative, cross-sectional research design to examine the structural relationships between preferred work type, perceived autonomy, and retention intentions among Generation Z employees within Malaysian small and medium-sized enterprises (SMEs). A hypothesis-driven quantitative approach is suitable for testing theoretically grounded relationships using statistical modeling and numerical data (Creswell & Creswell, 2018 ). The cross-sectional design enables the collection of data at a single point in time, appropriate for capturing Gen Z employees’ current perceptions of workplace flexibility, autonomy, and commitment to remain in their organizations. A survey-based approach was employed, widely used in organizational psychology and human resource research to collect standardized, self-reported data across diverse populations (Hair et al., 2021 ). This method is particularly effective for assessing latent psychological constructs such as autonomy and retention intention, which are best captured using validated, multi-item scales. The study integrates Self-Determination Theory (SDT) and the Job Demands-Resources (JD-R) model as its theoretical foundations, enabling the exploration of psychological mechanisms specifically perceived autonomy that mediate the relationship between structural work preferences and behavioral outcomes such as retention. 3.2 Population and Sampling The target population for this study comprises Generation Z employees (born between 1997 and 2012) currently working in Malaysian SMEs across various sectors, including services, retail, technology, and manufacturing. SMEs are selected due to their dominance in Malaysia’s private sector and their continued struggle to retain young employees amid generational value shifts and resource constraints (SME Corp Malaysia, 2023 ). This focus aligns with the study’s goal of understanding the impact of work structure and autonomy on Gen Z retention in real-world, non-corporate settings. A purposive sampling technique was applied to recruit respondents who met the following criteria: (1) aged between 18 and 28 years, (2) employed in an SME in Malaysia for at least three months, and (3) had experienced one or more work arrangements (e.g., on-site, hybrid, remote, or flexible hours). This method is effective in behavioral research where participants need direct experience with the phenomenon under investigation (Etikan, Musa, & Alkassim, 2016 ). Screening questions ensured eligibility. A power analysis using G*Power 3.1 (Faul et al., 2009 ) was conducted based on a medium effect size (f² = 0.15), statistical power of 0.95, and up to five predictors, suggesting a minimum sample size of 138. However, in accordance with PLS-SEM guidelines and the 10-times rule (Hair et al., 2021 ), a total of 256 valid responses were collected, enhancing statistical robustness and generalizability. 3.3 Measurement of Constructs Table 1 outlines the constructs and their measurement sources. All constructs were operationalized as latent variables, measured using multi-item, reflective indicators drawn from established literature. Responses were recorded using a 5-point Likert scale (1 = Strongly Disagree to 5 = Strongly Agree), a format well-suited to perception-based research and SEM analysis (Joshi et al., 2015 ). Each construct was measured with at least three items to ensure content validity and internal consistency. A pilot study with 30 Gen Z respondents was conducted to assess clarity and reliability. All constructs achieved Cronbach’s alpha > 0.70, indicating acceptable reliability (Hair et al., 2021 ). Table 1 Measurement Constructs and Sources Construct Description Source Preferred Work Type The degree to which the employee's actual work format aligns with their preferred model (e.g., remote, hybrid, flexible and on site). Ipsen et al. ( 2022 ); Laker et al. ( 2022 ) Perceived Autonomy The subjective feeling of volition, control, and self-direction in one’s work tasks and schedule. Gagné & Deci ( 2005 ); Wang et al. ( 2021 ) Retention Intention The employee’s conscious intention to remain employed in their current organization. Su & Reeve ( 2011 ) The construct of Preferred Work Type encompasses employees’ subjective alignment with one of four primary working arrangements: remote work, hybrid work, flexible hours, and on-site work. Each type reflects different expectations regarding autonomy, structure, and work-life integration. Remote work is characterized by the ability to perform job responsibilities entirely off-site, often from home, emphasizing independence, location flexibility, and minimal physical supervision (Ipsen et al., 2022 ; Wang et al., 2021 ). Hybrid work blends remote and in-office elements, appealing to those who seek both flexibility and occasional in-person collaboration, allowing employees to balance productivity with social engagement (Laker et al., 2022 ; van Gelder et al., 2023 ). Flexible hours refer to temporal flexibility where employees have control over when they work rather than where and is associated with increased perceptions of autonomy and improved work-life fit (Kelly et al., 2020 ; Putnam et al., 2014 ). In contrast, on-site work represents the traditional fixed-location model, often preferred by employees who value clear structure, workplace routine, and direct managerial support, particularly in roles that depend on physical presence (Messenger & Gschwind, 2016 ). Together, these work types represent meaningful psychological and logistical orientations that shape how individuals engage with their roles and experience autonomy, ultimately influencing organizational outcomes such as satisfaction, performance, and retention. 3.4 Data Collection Procedure Data were collected through a structured, self-administered online questionnaire distributed via Google Forms, LinkedIn, and WhatsApp over a five-week period. The survey link was shared in professional and university alumni groups to reach early-career Gen Z workers. Screening questions were included to verify eligibility. Respondents were briefed on the purpose of the study and informed that participation was voluntary, anonymous, and confidential. Informed consent was obtained electronically prior to participation. After data cleaning and removal of incomplete responses, 256 valid responses remained for final analysis. 3.5 Data Analysis Techniques Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. This technique is suitable for exploratory, theory-driven research with latent constructs and complex mediation models, especially when normality assumptions may be violated (Hair et al., 2021 ). The analysis followed a two-step approach. First, the measurement model was evaluated for reliability and validity. Internal consistency was assessed via Cronbach’s alpha and composite reliability (CR). Convergent validity was examined through average variance extracted (AVE) and item loadings. Discriminant validity was confirmed using the Fornell–Larcker criterion and the HTMT ratio. Second, the structural model was analyzed to test the hypotheses. This included examining path coefficients, R² values, effect sizes (f²), and predictive relevance (Q²). Bootstrapping with 5,000 resamples was employed to determine the significance of direct and indirect effects. The mediating role of autonomy was also tested. To address common method bias, Harman’s single-factor test and full collinearity VIF checks were applied (Kock, 2015 ). No significant bias was detected. This comprehensive analysis approach ensured the reliability and validity of the findings. 4. Results and Analysis 4.1 Descriptive Statistics and Respondent Profile Table 2 presents the demographic characteristics of the 256 valid responses retained after the initial data cleaning process. The descriptive statistics provide a foundational overview of the sample across key dimensions, including gender, age, educational background, industry sector, and preferred work arrangements. This diversity enhances the credibility and generalizability of the structural model, particularly in the context of Generation Z employees within Malaysian SMEs. In terms of gender distribution, the sample was relatively balanced, with 52.3% female and 47.7% male respondents. This proportion provides a fair representation of gender perspectives in the analysis. With respect to age, all participants fell within the 18–28 range, consistent with the operational definition of Generation Z. The largest subgroup (58.2%) was aged between 22 and 25 years, followed by 27.8% aged 26–28 and 14.1% aged 18–21. This distribution is indicative of early-career individuals who are either entering the labor market or transitioning into more stable employment roles within SMEs. Regarding educational attainment, nearly half of the respondents (48.4%) possessed a bachelor’s degree, while 28.1% held a diploma or equivalent qualification. An additional 17.2% had completed postgraduate studies, and 6.3% reported secondary-level education as their highest level. This reflects a moderately to highly educated Gen Z workforce, consistent with broader educational trends in Malaysia's urban SME sector. Participants also represented a variety of industry sectors, with 35.2% employed in services, 25.4% in retail, 20.3% in manufacturing, and 19.1% in technology. This sectoral spread aligns with the composition of Malaysia’s SME ecosystem, enhancing the generalizability of the findings across business types. Crucially, the study focused on employees’ preferred work arrangements, rather than their actual employment settings. Respondents were asked to identify which work arrangement they personally preferred among four options: remote work, hybrid work, flexible hours, and on-site work. As shown in Table 2 , on-site work emerged as the most preferred format, with 40.6% of respondents favoring a traditional, structured work environment. This likely reflects the operational realities of many SME roles that require physical presence, such as those in retail and manufacturing. Hybrid work was the second most preferred option (32.4%), indicating strong interest among Gen Z employees in balancing in-office interaction with remote flexibility. A smaller portion of respondents (16.4%) preferred fully remote work, reflecting both aspirational autonomy and the limitations of digital infrastructure or organizational readiness in SMEs. Lastly, flexible hours defined as autonomy over scheduling irrespective of location were preferred by 10.5% of the sample. While less common, this format still signals a segment of Gen Z that values control over time as much as control over space. The demographic and preference-based diversity within the sample provides a robust foundation for testing the hypothesized relationships in the structural model, particularly in examining how different preferred work arrangements influence perceived autonomy and, subsequently, retention intention among Generation Z employees. Table 2 Respondent Demographic Profile (N = 256) Demographic Variable Category Frequency (n) Percentage (%) Gender Male 122 47.7% Female 134 52.3% Age Group 18–21 36 14.1% 22–25 149 58.2% 26–28 71 27.8% Education Level Secondary 16 6.3% Diploma 72 28.1% Bachelor’s degree 124 48.4% Postgraduate 44 17.2% Industry Sector Services 90 35.2% Retail 65 25.4% Manufacturing 52 20.3% Technology 49 19.1% Preferred Work Type On-site Work 104 40.6% Hybrid Work 83 32.4% Remote Work 42 16.4% Flexible Hours 27 10.5% 4.2 Measurement Model Assessment Before evaluating the structural relationships between constructs, the measurement model was assessed to ensure that the reflective indicators met criteria for internal consistency reliability and construct validity. Following the established PLS-SEM two-step procedure (Hair et al., 2021 ), the analysis focused on (1) internal consistency reliability, (2) convergent validity, and (3) discriminant validity. 4.2.1 Reliability and Convergent Validity To evaluate the internal consistency and convergent validity of the measurement model, the following indices were examined for each construct: Cronbach’s Alpha, Composite Reliability (CR), and Average Variance Extracted (AVE). According to the guidelines by Hair et al. ( 2021 ), values for Cronbach’s Alpha and CR above 0.70 indicate strong reliability, while AVE values above 0.50 suggest that constructs explain more than half of the variance in their indicators, confirming convergent validity (Fornell & Larcker, 1981 ). As displayed in Table 3 , all constructs exceed the recommended thresholds. This confirms that the observed indicators reliably measure their intended latent variables and possess adequate internal consistency and shared variance. Table 3 Reliability and Convergent Validity Construct Cronbach’s Alpha Composite Reliability (CR) Average Variance Extracted (AVE) Remote Work Preference 0.86 0.90 0.66 Hybrid Work Preference 0.87 0.91 0.68 Flexible Hours Preference 0.84 0.89 0.64 On-Site Work Preference 0.83 0.88 0.62 Perceived Autonomy 0.89 0.93 0.72 Retention Intention 0.88 0.92 0.71 All constructs demonstrated excellent reliability and strong convergent validity, indicating robust psychometric properties across the measurement model. These findings are consistent with prior empirical studies in workplace design and motivational psychology, which emphasize the role of preference-aligned work structures and autonomy in shaping employee attitudes and behavioral intentions (Gagné & Deci, 2005 ; Wang et al., 2021 ). 4.2.2 Convergent Validity Convergent validity was assessed through the examination of individual indicator loadings and the Average Variance Extracted (AVE) for each construct. According to Fornell and Larcker ( 1981 ), convergent validity is confirmed when item loadings exceed 0.70 and the construct’s AVE is greater than 0.50. As shown in Table 4 , all item loadings meet or exceed the 0.70 threshold, and each construct comprises five items that strongly represent their latent dimensions. These findings affirm that each item contributes substantially to its respective construct and that convergent validity is well-established across the measurement model. Table 4 Outer Loadings and Convergent Validity Indicators Construct Item Code Outer Loading Remote Work Preference RWP1 0.82 RWP2 0.85 RWP3 0.79 RWP4 0.81 RWP5 0.83 Hybrid Work Preference HWP1 0.81 HWP2 0.84 HWP3 0.78 HWP4 0.80 HWP5 0.82 Flexible Hours Preference FHP1 0.80 FHP2 0.83 FHP3 0.77 FHP4 0.79 FHP5 0.81 On-Site Work Preference OWP1 0.78 OWP2 0.80 OWP3 0.76 OWP4 0.79 OWP5 0.82 Perceived Autonomy PA1 0.86 PA2 0.83 PA3 0.80 PA4 0.85 PA5 0.82 Retention Intention RI1 0.82 RI2 0.79 RI3 0.77 RI4 0.81 RI5 0.84 All items also demonstrated Variance Inflation Factor (VIF) values below 3.3, indicating no critical multicollinearity issues in the measurement model (Hair et al., 2021 ). The strong outer loadings and consistent construct performance further support the convergent validity of the model. 4.2.3 Discriminant Validity Discriminant validity was assessed using both the Fornell–Larcker criterion and the Heterotrait–Monotrait ratio (HTMT), following the guidelines of Henseler et al. ( 2015 ). The Fornell–Larcker criterion compares the square root of the Average Variance Extracted (AVE) for each construct against its correlations with other constructs. A construct is considered discriminantly valid if its AVE square root (diagonal value) is greater than any of its inter-construct correlations (off-diagonal values). As shown in Table 5 , all constructs meet this criterion. The square roots of the AVEs are higher than the corresponding correlations with other constructs, indicating that each construct shares more variance with its indicators than with other constructs. This confirms discriminant validity among the six latent variables in the model. Table 5 Discriminant Validity – Fornell–Larcker Criterion Construct RWP HWP FHP OWP PA RI Remote Work Preference (RWP) 0.81 Hybrid Work Preference (HWP) 0.58 0.82 Flexible Hours Preference (FHP) 0.53 0.60 0.79 On-Site Work Preference (OWP) 0.45 0.50 0.48 0.78 Perceived Autonomy (PA) 0.49 0.55 0.52 0.46 0.85 Retention Intention (RI) 0.44 0.50 0.48 0.42 0.63 0.84 To further confirm discriminant validity, the HTMT (Heterotrait–Monotrait Ratio) was computed. According to Henseler et al. ( 2015 ), HTMT values should be below 0.85 (conservative threshold) to demonstrate discriminant validity. As shown in Table 6 , all values fall within acceptable limits, supporting the empirical distinctiveness of each construct in the model. Table 6 Discriminant Validity – HTMT Ratio Construct RWP HWP FHP OWP PA RI Remote Work Preference (RWP) - Hybrid Work Preference (HWP) 0.69 - Flexible Hours Preference (FHP) 0.63 0.72 - On-Site Work Preference (OWP) 0.57 0.60 0.61 - Perceived Autonomy (PA) 0.58 0.65 0.61 0.54 - Retention Intention (RI) 0.52 0.60 0.59 0.50 0.68 - These results collectively confirm that the measurement model demonstrates strong discriminant validity across all constructs, validating its use in the subsequent structural path analysis. The clear separation between work preference types and outcome variables supports the theoretical integrity and empirical robustness of the model. 4.3 Structural Model Assessment The structural model was evaluated to assess its explanatory power, predictive relevance, and significance of hypothesized paths. The evaluation involved analysis of the coefficient of determination (R²) and the Stone–Geisser’s Q² statistic based on blindfolding procedures, as recommended in PLS-SEM methodology (Hair et al., 2021 ). 4.3.1 Coefficient of Determination (R²) As shown in Table 7 , the coefficient of determination (R²) was used to evaluate the amount of variance explained in the endogenous constructs. The R² value for Perceived Autonomy was 0.47, indicating that 47% of its variance was explained by the combined effects of Remote Work Preference, Hybrid Work Preference, and Flexible Hours Preference. Meanwhile, the R² value for Retention Intention was 0.59, suggesting that 59% of the variation in retention outcomes was accounted for by Perceived Autonomy and the three work-type preferences. According to Cohen ( 1988 ), R² values of 0.26 and above are considered substantial in behavioral and social sciences. Thus, both values demonstrate that the structural model has moderate to substantial explanatory power. Table 7 Coefficient of Determination (R²) Endogenous Construct R² Value Interpretation Perceived Autonomy 0.47 Moderate explanatory power Retention Intention 0.59 Substantial explanatory power 4.3.2 Predictive Power and Predictive Relevance of the Proposed Model To assess predictive relevance, the Q² values were calculated using the blindfolding procedure in SmartPLS. A Q² value greater than zero indicates that the model has predictive relevance for a specific endogenous construct (Chin, 1998 ; Hair et al., 2021 ). As shown in Table 8 , Q² = 0.34 for Perceived Autonomy and Q² = 0.42 for Retention Intention. These results reflect medium to large predictive relevance, supporting the model’s capability not only to explain but also to predict unseen data. Table 8 Predictive Power and Predictive Relevance of the Proposed Model Construct R² Predictive Power Q² Predictive Relevance Perceived Autonomy 0.470 Moderate 0.340 Medium Retention Intention 0.590 Substantial 0.420 Large These findings support the overall predictive quality and structural strength of the proposed research model, affirming its suitability for exploring generational work design and retention dynamics in Malaysian SMEs. 4.3.3 Effect Size Assessment (f²) To complement the R² analysis, effect sizes (f²) were calculated to assess the relative contribution of each exogenous variable to the explained variance of the endogenous constructs. According to Cohen ( 1988 ), f² values of 0.02, 0.15, and 0.35 indicate small, medium, and large effects, respectively. As shown in Table 9 , remote work preference and hybrid work preference demonstrate medium effect sizes on perceived autonomy, indicating their strong influence on employees’ psychological experience of volition and control. Flexible hours preference shows a small to medium effect, while on-site work preference displays a small but significant contribution. These results suggest that although autonomy is most strongly enhanced through flexible and hybrid arrangements, some Gen Z employees may also perceive autonomy when on-site work aligns with their personal values or lifestyle. Perceived autonomy, in turn, exhibits a medium effect size on retention intention, reinforcing its role as a core psychological driver of Gen Z loyalty in the workplace. These findings support the theoretical view that perceived autonomy is not just a mediating factor but a powerful determinant of retention, regardless of the structural work format. Table 9 Effect Sizes (f²) of Predictor Variables Path f² Effect Size Interpretation Remote Work Preference → PA 0.16 Medium Hybrid Work Preference → PA 0.22 Medium Flexible Hours Preference → PA 0.10 Small to Medium On-Site Work Preference → PA 0.06 Small Remote Work Preference → RI 0.08 Small Hybrid Work Preference → RI 0.14 Small to Medium Flexible Hours Preference → RI 0.07 Small On-Site Work Preference → RI 0.05 Small Perceived Autonomy → RI 0.19 Medium These results affirm the practical value of aligning work structures with employee preferences, whether remote, hybrid, flexible, or on-site. While flexibility enhances perceived autonomy more strongly overall, on-site arrangements also play a role when they reflect individual alignment. The findings emphasize the importance of designing autonomy-supportive environments, not just flexible ones, to drive retention among Gen Z employees in Malaysian SMEs. 4.3.4 Path Coefficients and Hypothesis Testing i. Direct Relationships The structural model results reveal that all four work-type preferences remote, hybrid, flexible hours, and on-site work have significant effects on perceived autonomy and retention intention. As shown in Table 10 , remote, hybrid, and flexible hours preferences are positively associated with both perceived autonomy and intention to stay, indicating that Gen Z employees who are offered these preferred formats feel more autonomous and are more likely to remain in their organizations. Interestingly, on-site work preference also demonstrates a significant but relatively weaker positive effect on perceived autonomy and retention intention. This suggests that, although less popular among Gen Z employees, some individuals may still prefer traditional work settings and derive autonomy and satisfaction when such preferences are respected. In addition, perceived autonomy maintains a strong and significant positive effect on retention intention, confirming its central role in Gen Z workplace motivation and commitment. These findings underscore the importance of aligning work arrangements with individual preferences, rather than assuming a one-size-fits-all approach to flexibility. Table 10 Direct Effects and Path Coefficients Path Path Coefficient (β) p-value Significance Remote Work Preference → Perceived Autonomy 0.26 0.001 Significant Hybrid Work Preference → Perceived Autonomy 0.31 0.000 Significant Flexible Hours Preference → Perceived Autonomy 0.22 0.003 Significant On-Site Work Preference → Perceived Autonomy 0.17 0.009 Significant Remote Work Preference → Retention Intention 0.20 0.005 Significant Hybrid Work Preference → Retention Intention 0.25 0.001 Significant Flexible Hours Preference → Retention Intention 0.18 0.007 Significant On-Site Work Preference → Retention Intention 0.15 0.015 Significant Perceived Autonomy → Retention Intention 0.36 0.000 Significant These results emphasize that autonomy-supportive environments are not limited to remote or hybrid setups alone. When employees regardless of whether they prefer on-site or flexible formats are matched with their preferred work structure, they experience greater autonomy and are more likely to stay. This affirms the importance of preference alignment, not just flexibility, in retaining Gen Z talent in SMEs. Table 11 illustrates the direct effects of various preferred work types on both retention intention and perceived autonomy among Generation Z employees in Malaysian SMEs. The findings reveal a consistent ranking pattern across both outcomes, with hybrid work demonstrating the strongest impact on retention (β = 0.25) and autonomy (β = 0.31), positioning it as the most effective arrangement for fostering both organizational commitment and psychological empowerment. Remote work follows closely, exhibiting a substantial influence on retention intention (β = 0.20) and perceived autonomy (β = 0.26), highlighting its capacity to enhance employee agency and loyalty. Flexible hours, while still significant (RI: β = 0.18; autonomy: β = 0.22), rank third, suggesting that temporal flexibility alone may be less impactful than spatial or hybrid flexibility in meeting Gen Z expectations. On-site work, although positively associated with both outcomes (RI: β = 0.15; autonomy: β = 0.17), ranks lowest, indicating that traditional work arrangements are least aligned with the autonomy-driven preferences of this generation. Overall, the results underscore the importance of aligning work structures with generational expectations, particularly favoring models that enhance flexibility and control to improve both autonomy and retention outcomes. Table 11 Impact of Preferred Work Types on Retention Intention and Perceived Autonomy Preferred Work Type β with Retention Intention (RI) Rank Based Impact β with Perceived Autonomy Rank Based Impact Hybrid Work 0.25 1 0.31 1 Remote Work 0.20 2 0.26 2 Flexible Hours 0.18 3 0.22 3 On-Site Work 0.15 4 0.17 4 ii. Mediating Results The mediation analysis summarized in Table 12 confirms that Perceived Autonomy significantly mediates the relationship between each preferred work type and Retention Intention among Generation Z employees in Malaysian SMEs. Across all four work types remote, hybrid, flexible hours, and on-site both direct and indirect effects are statistically significant, indicating consistent patterns of partial mediation. These results affirm that matching employees with their preferred work arrangements not only has a direct influence on their intention to stay but also indirectly enhances retention by increasing their psychological sense of autonomy. Among the tested work modes, hybrid work exhibits the strongest total effect (β = 0.36), with both its direct effect (β = 0.25, p = 0.001) and indirect effect via autonomy (β = 0.11, p = 0.000) being highly significant. This underscores hybrid work as the most effective configuration for simultaneously supporting autonomy and improving retention outcomes. Remote work follows with a total effect of β = 0.29, while flexible hours (β = 0.26) and on-site work (β = 0.21) also yield significant though comparatively weaker impacts. These findings reinforce the conclusion that perceived autonomy acts as a crucial psychological mechanism linking structural preferences to behavioral commitment. Importantly, the mediating role of autonomy is not limited to flexible or digital formats. Even in traditional on-site settings, when such arrangements align with individual preferences, they can still enhance feelings of control and reduce turnover intentions. Thus, it is not merely flexibility that matters but alignment between work type and employee expectations, which enables autonomy and strengthens organizational commitment. Overall, the mediation results consistently support Self-Determination Theory, validating autonomy as a core explanatory factor in Gen Z retention behavior. As workplaces continue to evolve, hybrid models emerge as the most future-ready solution, offering a balance of structure and freedom that maximizes both retention and psychological empowerment for the emerging workforce. Table 12 Mediation Analysis Summary Mediated Path Direct Effect (β) p-value Status Indirect Effect (β) p-value Status Total Effect (β) p-value Mediation Type Remote Work → Autonomy → Retention 0.20 0.005 Significant 0.09 0.001 Significant 0.29 0.000 Partial mediation Hybrid Work → Autonomy → Retention 0.25 0.001 Significant 0.11 0.000 Significant 0.36 0.000 Partial mediation Flexible Hours → Autonomy → Retention 0.18 0.007 Significant 0.08 0.002 Significant 0.26 0.000 Partial mediation On-Site Work → Autonomy → Retention 0.15 0.015 Significant 0.06 0.009 Significant 0.21 0.001 Partial mediation 4.4 Discussion and Implications The mediation analysis offers decisive insights into the mechanism by which preferred work structures influence retention among Generation Z employees. Specifically, the results confirm that perceived autonomy serves as a robust and consistent mediator between all four tested work types hybrid, remote, flexible hours, and on-site and retention intention. This mediating effect reinforces the central proposition of Self-Determination Theory (Deci & Ryan, 2000 ): that the experience of autonomy is a psychological prerequisite for sustained engagement and organizational commitment. In the context of Malaysian SMEs, where structural constraints often limit extrinsic rewards, autonomy emerges as the critical internal resource that translates preferred work arrangements into long-term retention outcomes. 4.4.1 Interpretation of Results Patterns The mediation analysis confirms that perceived autonomy consistently mediates the relationship between preferred work types and retention intention among Generation Z employees. Among all models, hybrid work shows the strongest total effect (β = 0.36), with both direct and indirect paths being significant. This suggests that hybrid work not only provides structural flexibility but also satisfies Gen Z’s psychological need for autonomy, leading to greater organizational commitment. These findings support Self-Determination Theory, which posits that autonomy is essential for intrinsic motivation and sustained engagement (Deci & Ryan, 2000 ). The result also aligns with Laker et al. ( 2022 ), who found hybrid models to be the most effective for improving retention through enhanced employee experience. Remote work ranked second (total β = 0.29), confirming that spatial flexibility enhances autonomy (β = 0.26) and subsequently retention. However, its slightly lower effect compared to hybrid work may reflect reduced opportunities for collaboration and social connection, which Gen Z still values (Tan & Adamu, 2023 ). Flexible hours showed a weaker mediated effect (total β = 0.26; indirect β = 0.08), indicating that temporal control alone is less impactful than spatial or blended flexibility. This echoes findings by Putnam et al. ( 2014 ), who argued that schedule autonomy is most effective when paired with locational and task-related freedom. Interestingly, on-site work, while the least autonomy-rich, still demonstrated a significant mediation effect (total β = 0.21), reinforcing the idea that autonomy is not solely tied to flexibility but to preference alignment. Even traditional setups can be autonomy-supportive if they reflect individual choice (Su & Reeve, 2011 ). Overall, these patterns reaffirm autonomy as a critical mechanism linking work structure and retention, with hybrid work emerging as the most effective strategy for future-focused talent retention. 4.4.2 Theoretical and Empirical Contributions This study makes several important theoretical contributions by clarifying the mediating role of perceived autonomy in the relationship between preferred work types and retention intention a mechanism that has received limited attention in generational workforce literature, particularly within emerging-market SME contexts. The findings extend the Self-Determination Theory (Deci & Ryan, 2000 ) by showing that autonomy is not only an independent predictor of motivation but also a critical mediator that transforms flexible work structures into behavioral outcomes such as retention. While prior research has often conflated flexibility with autonomy, this study empirically distinguishes between them, revealing that preference alignment, not flexibility alone, drives perceived autonomy and retention (Gagné & Deci, 2005 ). From an empirical standpoint, the results provide novel evidence from the Malaysian SME sector, where rigid hierarchies and limited HR systems are still dominant (SME Corp Malaysia, 2023 ). Unlike studies situated in developed economies or large corporations (e.g., Wang et al., 2021 ), this research shows that even in constrained environments, perceived autonomy can be cultivated through thoughtful work design and respect for employee preferences. Moreover, the consistent significance of the mediation effects across all work types suggests that autonomy-supportive environments are universally valuable, regardless of the specific work format. This reinforces the applicability of both SDT and the Job Demands–Resources (JD-R) model (Bakker & Demerouti, 2017 ) in understanding how psychological resources operate under real-world structural limitations. 4.4.3 Practical Implications The mediation results carry urgent and strategic implications for workforce management within Malaysian SMEs. As perceived autonomy consistently mediates the relationship between preferred work types and retention, it becomes clear that organizations must shift from simply offering flexible work options to intentionally designing autonomy-supportive environments. In this study, hybrid work demonstrated the highest total effect on retention intention due to its ability to simultaneously provide structural flexibility and satisfy psychological needs. Thus, hybrid work should be institutionalized as the dominant model in SME HR policy, especially for attracting and retaining Gen Z employees. SMEs should implement structured hybrid schedules that balance remote autonomy with periodic in-person collaboration, which not only satisfies autonomy but also supports relatedness a key component of Self-Determination Theory (Deci & Ryan, 2000 ). To operationalize these findings, organizations should focus on preference alignment as a core HR principle. This means allowing employees to select from work arrangements that best match their individual needs and values, rather than enforcing a uniform policy. Research by Laker et al. ( 2022 ) emphasizes that such alignment enhances the psychological contract and improves retention outcomes, particularly for early-career employees. Beyond offering choice, firms must also train managers to adopt autonomy-supportive behaviors, such as providing decision latitude, avoiding micromanagement, and enabling flexible goal-setting (Gagné & Deci, 2005 ). These leadership practices are essential for reinforcing the internal perception of autonomy, even in roles that are structurally constrained. Additionally, SMEs should invest in monitoring systems that track perceived autonomy, not just turnover rates. Including autonomy metrics in employee surveys and stay interviews will help organizations diagnose potential disengagement before it results in exit behavior. This is particularly relevant in Malaysian SMEs, where limited resources often preclude high compensation or formalized career progression. As shown in Bakker and Demerouti’s ( 2017 ) JD-R model, psychological resources like autonomy can compensate for structural job demands, offering a cost-effective retention tool. Therefore, embedding autonomy into job design, team structures, and performance systems is no longer optional it is imperative for organizational survival in a Gen Z–driven labor market. Ultimately, the future of work in SMEs must be personalized, autonomy-enabled, and structurally diverse. Hybrid work, supported by psychological empowerment and participatory management, offers the most promising path forward. Firms that fail to adapt risk alienating a generation that equates meaningful work not with location or hours, but with control, trust, and purpose. 5. Conclusion This study aimed to examine how different Preferred Work Types influence Retention Intention among Generation Z employees in Malaysian SMEs, with Perceived Autonomy as a mediating variable. Using PLS-SEM analysis on data collected from 256 Gen Z employees, the results revealed that all four-work preferences hybrid, remote, flexible hours, and on-site work significantly impact retention both directly and indirectly through perceived autonomy. Among them, hybrid work emerged as the most effective format, offering the strongest total effect on retention by enhancing both structural and psychological dimensions of autonomy. The study contributes to literature by integrating Self-Determination Theory with empirical workplace preferences, offering practical guidance for SME retention strategies in a Gen Z-driven labor market. However, limitations include reliance on cross-sectional data and focus on a single generational cohort within Malaysia, which may limit broader generalizability. Future research should employ longitudinal or experimental designs and explore sector-specific constraints or cultural variations in autonomy and work-type preferences. Additionally, examining the role of managerial autonomy support as a moderator may offer deeper insight into organizational practices that strengthen Gen Z retention. Declarations Ethical Considerations This study was conducted in accordance with the ethical standards and guidelines set by Universiti Kebangsaan Malaysia (UKM). Ethical approval was obtained from the Research Ethics Committee of UKM prior to data collection (Reference No: UKM PPI/111/8/JEP-2025-016). All participants were informed about the purpose of the study and their rights as respondents. Participation was voluntary, and informed consent was obtained before the commencement of the survey. Confidentiality and anonymity were strictly maintained, with no personal identifiers collected or disclosed. The study adhered to the principles of academic integrity and intellectual property protection by fully citing all sources used. Data collection, analysis, and reporting were carried out with transparency and objectivity to minimize potential bias and ensure the reliability of findings. The results have been interpreted responsibly with consideration for their implications in managerial practices and policy development concerning Generation Z employees in Malaysian SMEs. Ethical Approval and Consent to Participate This study received ethical approval from the Research Ethics Committee of Universiti Kebangsaan Malaysia (UKM) under Reference No: UKM PPI/111/8/JEP-2025-016. Informed consent was obtained from all participants prior to data collection. Consent for Publication Not applicable. Funding This research received no external funding. Competing Interests The authors declare no competing interests. Data Availability The data supporting the findings of this study are available from the corresponding author upon reasonable request. References Bakker, A. B., & Demerouti, E. (2017). 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Human Relations, 67(4), 413–440. https://doi.org/10.1177/0018726713495704 Randstad. (2022). Employer Brand Research Malaysia: Gen Z insights. Randstad Malaysia. Shadovnik, S. (2024, October 14). Why so many companies are firing Gen Z employees. Inc. Magazine. https://www.inc.com/susan-shadovnik/why-gen-z-are-being-fired.html Singh, P., Dhir, S., & Gaur, A. (2021). Understanding Generation Z: Characteristics, preferences, and challenges. Journal of Business and Management Studies, 7(3), 45–56. SME Corp Malaysia. (2023). SME Annual Report 2022/23. https://www.smecorp.gov.my Su, Y. L., & Reeve, J. (2011). A meta-analysis of the effectiveness of intervention programs designed to support autonomy. Educational Psychology Review, 23(1), 159–188. https://doi.org/10.1007/s10648-010-9142-7 Tan, H. L., & Adamu, M. Y. (2023). Work-life integration and retention of Generation Z employees in Malaysian SMEs: The role of workplace autonomy. Asia-Pacific Journal of Human Resources. https://doi.org/10.1111/1744-7941.12456 van Gelder, M., Haar, J., & Russo, M. (2023). How hybrid work shapes employee voice and engagement: A multilevel perspective. Journal of Vocational Behavior, 142, 103819. https://doi.org/10.1016/j.jvb.2023.103819 Wang, B., Liu, Y., Qian, J., & Parker, S. K. (2021). Achieving effective remote working during the COVID-19 pandemic: A work design perspective. Applied Psychology, 70(1), 16–59. https://doi.org/10.1111/apps.12290 Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 26 Aug, 2025 Read the published version in Future Business Journal → Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Introduction","content":"\u003cp\u003eThe emergence of Generation Z (born between 1997 and 2012) in the global labor force is compelling organizations to reevaluate conventional employment structures. In Malaysia, where small and medium-sized enterprises (SMEs) account for over 97% of all registered businesses and employ more than seven million individuals, the integration of Gen Z employees presents both strategic opportunities and managerial challenges. Shaped by rapid technological evolution, the COVID-19 pandemic, and shifting societal values surrounding autonomy and mental well-being, Gen Z workers bring distinct expectations regarding communication, work styles, and organizational purpose. Their growing presence in the Malaysian workforce has intensified the need to design work environments that align with these generational preferences while sustaining productivity and cohesion.\u003c/p\u003e\u003cp\u003eDespite their increasing numbers, Gen Z employees in Malaysia have emerged as a particularly vulnerable group with respect to job retention. Multiple labor market studies and human resource reports indicate that this cohort experiences not only elevated termination rates but also exhibits higher rates of voluntary turnover. A recent survey by Hiredly (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) reported that more than 60% of Malaysian employers had terminated Gen Z workers in the past year, often citing deficiencies in professionalism, communication, and adaptability to traditional workplace norms. Similarly, Deloitte Malaysia (2023) found that 84% of Gen Z and Millennial employees would consider resigning if required to return to fully on-site work underscoring a growing disconnect between organizational practices and generational work values. Moreover, a study by Randstad (\u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) revealed that 28% of Gen Z employees left their roles due to a lack of social connection or exposure to toxic workplace cultures, highlighting the importance of not only flexibility but also meaningful interpersonal engagement in workplace settings.\u003c/p\u003e\u003cp\u003eBeyond retention, employers also report challenges in performance and integration. Recent findings suggest that 74% of business leaders perceive Gen Z employees as \u0026ldquo;difficult to work with,\u0026rdquo; while 12% of hires from this generation were reportedly dismissed within the first week of employment (HiBob, \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). These observations suggest a widening structural misalignment: although Gen Z employees tend to be digitally fluent and well-educated, they often struggle to thrive in conventional workplace models particularly within SMEs that maintain hierarchical structures and lack the digital flexibility Gen Z increasingly demands. This disconnect raises urgent questions about the evolving nature of work: What employment models effectively support Gen Z\u0026rsquo;s expectations and capabilities? How can SMEs redesign work arrangements to simultaneously enhance autonomy, retention, and performance?\u003c/p\u003e\u003cp\u003eDesigning future-oriented workplaces necessitates a fundamental shift in both where and how work is executed. For Generation Z, autonomy defined as the degree of control over when, where, and how tasks are completed has become a central determinant of job satisfaction and organizational commitment. Flexible work arrangements such as remote work, hybrid models, and adjustable hours are no longer viewed as perks but as essential conditions. Yet, the implementation of such practices remains uneven among Malaysian SMEs, many of which continue to operate under rigid administrative structures. Without adapting to these changing preferences, organizations face elevated risks of turnover, disengagement, and diminished productivity. As the future of work becomes increasingly individualized and autonomy-driven, understanding the relationship between preferred work types and perceived autonomy is essential to developing effective retention strategies.\u003c/p\u003e\u003cp\u003eEmployee retention among Generation Z has thus emerged as a critical concern within human resource management. A growing body of research emphasizes the significance of aligning work design with employee preferences to mitigate turnover. Gen Z employees, who exhibit a strong inclination toward flexibility, work-life balance, and technological integration, are more likely to remain in organizations that accommodate preferred work models such as remote, hybrid, or flexible-hour arrangements (Ipsen et al., \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Laker et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Flexible work designs have been shown to enhance well-being and reduce voluntary exits among younger workers (Wang et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Laker et al., (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), for example, found that congruence between personal preferences and work conditions significantly improved retention among early-career professionals. In the Southeast Asian context, Tan and Adamu (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) observed that Gen Z employees in Malaysian SMEs demonstrate higher loyalty and reduced intention to quit when provided with autonomy over work location and schedule. Despite these findings, existing literature often treats work flexibility and retention as discrete phenomena, without exploring the psychological mechanisms such as perceived autonomy that mediate this relationship. Furthermore, much of the current research is grounded in developed economies, leaving a notable gap in understanding how these dynamics operate in emerging markets like Malaysia, where organizational resources are often constrained and employee turnover carries significant operational costs.\u003c/p\u003e\u003cp\u003eThis study is grounded in Self-Determination Theory (SDT), which identifies autonomy as a fundamental psychological need vital for motivation, well-being, and sustained behavioral commitment (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e). According to SDT, when individuals experience autonomy in their roles meaning they perceive volition and control they are more likely to develop intrinsic motivation and maintain long-term engagement (Gagn\u0026eacute; \u0026amp; Deci, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e). The framework is particularly relevant for Generation Z, whose career choices are strongly influenced by values of personal agency and purpose. Complementing this approach is the Job Demands-Resources (JD-R) model, which emphasizes autonomy as a pivotal job resource that buffers against job demands and predicts favorable outcomes, including increased engagement and reduced turnover intentions (Bakker \u0026amp; Demerouti, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Prior studies have applied SDT in diverse sectors to demonstrate how autonomy-supportive environments can reduce attrition and enhance satisfaction (Su \u0026amp; Reeve, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2011\u003c/span\u003e). In the Malaysian SME sector where formal HR systems are often underdeveloped managerial support for autonomy may serve as a cost-effective mechanism to strengthen Gen Z retention. Both SDT and JD-R therefore provide a robust theoretical basis for examining autonomy as a mediator between preferred work structures and retention outcomes.\u003c/p\u003e\u003cp\u003eThis study contributes to both academic and practitioner-oriented discourses by investigating a timely and underexplored issue: how alignment between Generation Z\u0026rsquo;s preferred work types and perceived workplace autonomy influences employee retention within Malaysian SMEs. As Gen Z becomes a dominant component of the workforce in the coming decade, developing evidence-based strategies to enhance their retention is critical for organizational sustainability. Unlike previous research, which often examines work preferences and job satisfaction in isolation, this study explicitly integrates the mediating role of autonomy to provide a more nuanced understanding of retention behavior. In doing so, it addresses key empirical and theoretical gaps, particularly within the context of resource-constrained, emerging economies. For practitioners, the study offers actionable insights for redesigning HR policies and work environments to foster stronger retention outcomes among Gen Z employees. Specifically, it identifies which work modalities remote, hybrid, flexible-hour, or on-site are most effective when paired with autonomy-enhancing practices.\u003c/p\u003e\u003cp\u003eThe remainder of this paper is structured as follows: the next section presents a comprehensive review of the relevant literature, followed by the development of hypotheses and the proposed conceptual framework. Subsequently, the research methodology is outlined, including data collection procedures, sample characteristics, and measurement instruments and analysis techniques. The paper then presents the results of the data analysis, including assessments of the measurement and structural models. Finally, the discussion addresses the theoretical and managerial implications of the findings, identifies key limitations, and suggests directions for future research.\u003c/p\u003e"},{"header":"2. Literature review","content":"\u003cp\u003eRetention of Generation Z employees has emerged as a pressing issue in human resource literature, with a growing emphasis on understanding the interplay between generational preferences and workplace structures. Several studies have identified that Gen Z, compared to prior generations, places a stronger emphasis on workplace flexibility, autonomy, mental well-being, and digital fluency (Laker et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Singh et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Ipsen et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) found that flexible work arrangements such as hybrid models and remote options are associated with increased employee well-being and lower turnover rates among younger workers. Similarly, Wang et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) highlighted the positive effect of flexible job designs on engagement and retention in digitally competent workforces. While these findings establish a relationship between work preferences and retention, they are often drawn from studies conducted in large corporations and developed economies. In the context of Malaysian SMEs where hierarchical structures and limited resources often restrict implementation of such flexible models these insights may not directly translate. SMEs are typically underrepresented in generational studies despite employing a significant portion of the workforce in developing regions.\u003c/p\u003e\u003cp\u003eMoreover, the literature presents conceptual gaps by frequently conflating flexible work arrangements with autonomy, without distinguishing autonomy as a subjective psychological state rather than just a structural feature. Deci and Ryan\u0026rsquo;s (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e) Self-Determination Theory (SDT) asserts that autonomy feeling volitional and in control is a fundamental psychological need influencing motivation, well-being, and organizational commitment. Gagn\u0026eacute; and Deci (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e) extended this view to workplace settings, showing that autonomy enhances intrinsic motivation and long-term engagement. However, few empirical studies have explicitly tested autonomy as a mediator between preferred work types and actual retention behavior, especially in SMEs. Even within Southeast Asian contexts, most research, such as that by Tan and Adamu (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), tends to focus on job satisfaction rather than deeper retention mechanisms. Consequently, despite consensus on the importance of autonomy and flexibility, little is known about how these interact in resource-constrained SME environments. This study seeks to fill that gap by investigating how perceived autonomy mediates the relationship between Gen Z's work preferences and their retention in Malaysian SMEs.\u003c/p\u003e\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e\u003ch2\u003e2.1 Hypothesis Development\u003c/h2\u003e\u003cdiv id=\"Sec4\" class=\"Section3\"\u003e\u003ch2\u003e2.1.1 Preferred Work Type and Retention\u003c/h2\u003e\u003cp\u003eRetention of Generation Z employees is increasingly shaped by the alignment between individual work preferences and organizational structures. Gen Z workers prioritize flexible arrangements such as remote work, hybrid models, or adjustable schedules as baseline expectations rather than optional perks (Laker et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). When these preferences are not accommodated, dissatisfaction and turnover intentions rise (Singh et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). This highlights the strategic importance of work structure in influencing retention outcomes. According to the Job Demands-Resources (JD-R) model, when employees experience high job resources that align with personal needs such as schedule control and flexibility, they are more likely to remain motivated and engaged (Bakker \u0026amp; Demerouti, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Preferred work types act as job resources that reduce strain and support longer-term organizational attachment. Ipsen et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) demonstrated that flexible work arrangements during and after the COVID-19 pandemic significantly enhanced employee retention across age groups, especially younger cohorts. Wang et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) found that knowledge workers in flexible setups had reduced turnover intentions. However, these studies largely focus on corporate or public-sector contexts in developed economies, leaving SMEs particularly in Southeast Asia less represented in the discourse.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eHypothesis 1\u003c/strong\u003e\u003cp\u003e(H1):\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cem\u003ePreferred work types (e.g., remote, hybrid, flexible hours and on-site work) are positively associated with retention intentions among Generation Z employees in Malaysian SMEs.\u003c/em\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec5\" class=\"Section3\"\u003e\u003ch2\u003e2.1.2 Preferred Work Type and Perceived Autonomy\u003c/h2\u003e\u003cp\u003eFlexible work structures are not merely operational mechanisms they also shape how employees psychologically experience their roles. For Gen Z, work formats that align with their values can enhance perceived autonomy, which is essential to workplace satisfaction and self-regulation. When employees can choose when and where to work, they are more likely to feel empowered and self-directed. Self-Determination Theory (SDT) posits that autonomy is a fundamental psychological need that drives intrinsic motivation, engagement, and long-term well-being (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e). Gagn\u0026eacute; and Deci (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e) extend this theory to organizational settings, asserting that work environments perceived as autonomy-supportive yield more motivated and committed employees. Preferred work types, therefore, serve as external structures that can satisfy this intrinsic need. Wang et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) found that flexible schedules increased perceived autonomy and job satisfaction among digital professionals. Ipsen et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) confirmed that flexible work positively affected autonomy across European samples. However, these studies often conflate autonomy with structural flexibility, without measuring the psychological experience of control especially in traditional SME contexts. As Malaysian SMEs often retain rigid supervision norms, the extent to which preferred work types lead to autonomy remains uncertain and worth investigating.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eHypothesis 2\u003c/strong\u003e\u003cp\u003e(H2):\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cem\u003ePreferred work types are positively associated with perceived autonomy among Generation Z employees in Malaysian SMEs.\u003c/em\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec6\" class=\"Section3\"\u003e\u003ch2\u003e2.1.3 Perceived Autonomy and Retention\u003c/h2\u003e\u003cp\u003eAutonomy has consistently been identified as a critical determinant of employee engagement and commitment. For Generation Z employees, who value independence, authenticity, and purpose, the perception of autonomy plays a key role in shaping their intention to remain with an organization. When employees feel they have control over how, when, and where they work, they are more likely to internalize work goals and develop a sense of ownership leading to reduced turnover intentions. Self-Determination Theory (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e) posits that autonomy is a fundamental human need, essential for fostering intrinsic motivation and sustained behavioral engagement. In organizational contexts, autonomy enables employees to feel volitional and self-endorsed in their tasks (Gagn\u0026eacute; \u0026amp; Deci, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e), which contributes to stronger emotional ties to the organization and lower attrition risk. The JD-R model further emphasizes autonomy as a critical job resource that buffers against burnout and supports positive work outcomes (Bakker \u0026amp; Demerouti, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Multiple empirical studies support the relationship between perceived autonomy and employee retention. Su and Reeve (\u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2011\u003c/span\u003e) found that autonomy-supportive environments significantly reduced turnover intention across service-sector employees. In digital-native workforces, Wang et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) observed that autonomy improved not only satisfaction but also organizational commitment. Despite this, few studies have examined this relationship specifically within Gen Z cohorts or in the SME sector in emerging markets, where managerial autonomy may be constrained.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eHypothesis 3\u003c/strong\u003e\u003cp\u003e(H3):\u003c/p\u003e\u003c/p\u003e\u003cp\u003ePerceived autonomy is positively associated with retention intentions among Generation Z employees in Malaysian SMEs.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec7\" class=\"Section3\"\u003e\u003ch2\u003e2.1.4 The Mediating Role of Autonomy\u003c/h2\u003e\u003cp\u003eWhile preferred work types such as remote or hybrid models are structurally linked to improved retention, they do not inherently explain why these arrangements influence employee behavior. A key psychological mechanism that may explain this link is perceived autonomy. When employees work in preferred formats, they are more likely to feel trusted and empowered, which in turn fosters deeper engagement and a stronger commitment to remain in the organization. Thus, autonomy may serve as a crucial explanatory pathway between structural work preferences and actual retention behavior. Self-Determination Theory (SDT) explicitly positions autonomy as a mediating psychological need that must be satisfied to achieve motivation and sustained behavioral outcomes (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e). Gagn\u0026eacute; and Deci (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e) emphasized that autonomy transforms external structures like flexible schedules into intrinsic motivation and loyalty. Similarly, the Job Demands-Resources (JD-R) model identifies autonomy as a key job resource that enhances employee resilience and attachment, even under high-demand conditions (Bakker \u0026amp; Demerouti, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). When preferred work types meet this autonomy need, they generate positive psychological states that increase retention likelihood. Although several studies confirm that both work flexibility and autonomy are independently associated with retention (Ipsen et al., \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Wang et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), few explicitly examine autonomy as a mediating variable. In education and healthcare contexts, autonomy has been shown to mediate between work conditions and motivation (Su \u0026amp; Reeve, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2011\u003c/span\u003e), but such mediation effects remain underexplored in Gen Z workplace studies especially within SMEs. The limited empirical attention to autonomy as a mechanism in SME contexts leaves a critical gap in both theory and practice.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eHypothesis 4\u003c/strong\u003e\u003cp\u003e(H4):\u003c/p\u003e\u003c/p\u003e\u003cp\u003ePerceived autonomy mediates the relationship between preferred work type and retention among Generation Z employees in Malaysian SMEs.\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e"},{"header":"3. Methodology","content":"\u003cdiv id=\"Sec9\" class=\"Section2\"\u003e\u003ch2\u003e3.1 Research Design\u003c/h2\u003e\u003cp\u003eThis study adopts a quantitative, cross-sectional research design to examine the structural relationships between preferred work type, perceived autonomy, and retention intentions among Generation Z employees within Malaysian small and medium-sized enterprises (SMEs). A hypothesis-driven quantitative approach is suitable for testing theoretically grounded relationships using statistical modeling and numerical data (Creswell \u0026amp; Creswell, \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). The cross-sectional design enables the collection of data at a single point in time, appropriate for capturing Gen Z employees\u0026rsquo; current perceptions of workplace flexibility, autonomy, and commitment to remain in their organizations. A survey-based approach was employed, widely used in organizational psychology and human resource research to collect standardized, self-reported data across diverse populations (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). This method is particularly effective for assessing latent psychological constructs such as autonomy and retention intention, which are best captured using validated, multi-item scales. The study integrates Self-Determination Theory (SDT) and the Job Demands-Resources (JD-R) model as its theoretical foundations, enabling the exploration of psychological mechanisms specifically perceived autonomy that mediate the relationship between structural work preferences and behavioral outcomes such as retention.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec10\" class=\"Section2\"\u003e\u003ch2\u003e3.2 Population and Sampling\u003c/h2\u003e\u003cp\u003eThe target population for this study comprises Generation Z employees (born between 1997 and 2012) currently working in Malaysian SMEs across various sectors, including services, retail, technology, and manufacturing. SMEs are selected due to their dominance in Malaysia\u0026rsquo;s private sector and their continued struggle to retain young employees amid generational value shifts and resource constraints (SME Corp Malaysia, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). This focus aligns with the study\u0026rsquo;s goal of understanding the impact of work structure and autonomy on Gen Z retention in real-world, non-corporate settings. A purposive sampling technique was applied to recruit respondents who met the following criteria: (1) aged between 18 and 28 years, (2) employed in an SME in Malaysia for at least three months, and (3) had experienced one or more work arrangements (e.g., on-site, hybrid, remote, or flexible hours). This method is effective in behavioral research where participants need direct experience with the phenomenon under investigation (Etikan, Musa, \u0026amp; Alkassim, \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). Screening questions ensured eligibility. A power analysis using G*Power 3.1 (Faul et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2009\u003c/span\u003e) was conducted based on a medium effect size (f\u0026sup2; = 0.15), statistical power of 0.95, and up to five predictors, suggesting a minimum sample size of 138. However, in accordance with PLS-SEM guidelines and the 10-times rule (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), a total of 256 valid responses were collected, enhancing statistical robustness and generalizability.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec11\" class=\"Section2\"\u003e\u003ch2\u003e3.3 Measurement of Constructs\u003c/h2\u003e\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e outlines the constructs and their measurement sources. All constructs were operationalized as latent variables, measured using multi-item, reflective indicators drawn from established literature. Responses were recorded using a 5-point Likert scale (1\u0026thinsp;=\u0026thinsp;Strongly Disagree to 5\u0026thinsp;=\u0026thinsp;Strongly Agree), a format well-suited to perception-based research and SEM analysis (Joshi et al., \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). Each construct was measured with at least three items to ensure content validity and internal consistency. A pilot study with 30 Gen Z respondents was conducted to assess clarity and reliability. All constructs achieved Cronbach\u0026rsquo;s alpha\u0026thinsp;\u0026gt;\u0026thinsp;0.70, indicating acceptable reliability (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eMeasurement Constructs and Sources\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDescription\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSource\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePreferred Work Type\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe degree to which the employee's actual work format aligns with their preferred model (e.g., remote, hybrid, flexible and on site).\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eIpsen et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e); Laker et al. (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe subjective feeling of volition, control, and self-direction in one\u0026rsquo;s work tasks and schedule.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eGagn\u0026eacute; \u0026amp; Deci (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e); Wang et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe employee\u0026rsquo;s conscious intention to remain employed in their current organization.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSu \u0026amp; Reeve (\u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2011\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThe construct of Preferred Work Type encompasses employees\u0026rsquo; subjective alignment with one of four primary working arrangements: remote work, hybrid work, flexible hours, and on-site work. Each type reflects different expectations regarding autonomy, structure, and work-life integration. Remote work is characterized by the ability to perform job responsibilities entirely off-site, often from home, emphasizing independence, location flexibility, and minimal physical supervision (Ipsen et al., \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Wang et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Hybrid work blends remote and in-office elements, appealing to those who seek both flexibility and occasional in-person collaboration, allowing employees to balance productivity with social engagement (Laker et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; van Gelder et al., \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Flexible hours refer to temporal flexibility where employees have control over when they work rather than where and is associated with increased perceptions of autonomy and improved work-life fit (Kelly et al., \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Putnam et al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). In contrast, on-site work represents the traditional fixed-location model, often preferred by employees who value clear structure, workplace routine, and direct managerial support, particularly in roles that depend on physical presence (Messenger \u0026amp; Gschwind, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). Together, these work types represent meaningful psychological and logistical orientations that shape how individuals engage with their roles and experience autonomy, ultimately influencing organizational outcomes such as satisfaction, performance, and retention.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec12\" class=\"Section2\"\u003e\u003ch2\u003e3.4 Data Collection Procedure\u003c/h2\u003e\u003cp\u003eData were collected through a structured, self-administered online questionnaire distributed via Google Forms, LinkedIn, and WhatsApp over a five-week period. The survey link was shared in professional and university alumni groups to reach early-career Gen Z workers. Screening questions were included to verify eligibility. Respondents were briefed on the purpose of the study and informed that participation was voluntary, anonymous, and confidential. Informed consent was obtained electronically prior to participation. After data cleaning and removal of incomplete responses, 256 valid responses remained for final analysis.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec13\" class=\"Section2\"\u003e\u003ch2\u003e3.5 Data Analysis Techniques\u003c/h2\u003e\u003cp\u003eData were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. This technique is suitable for exploratory, theory-driven research with latent constructs and complex mediation models, especially when normality assumptions may be violated (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). The analysis followed a two-step approach. First, the measurement model was evaluated for reliability and validity. Internal consistency was assessed via Cronbach\u0026rsquo;s alpha and composite reliability (CR). Convergent validity was examined through average variance extracted (AVE) and item loadings. Discriminant validity was confirmed using the Fornell\u0026ndash;Larcker criterion and the HTMT ratio. Second, the structural model was analyzed to test the hypotheses. This included examining path coefficients, R\u0026sup2; values, effect sizes (f\u0026sup2;), and predictive relevance (Q\u0026sup2;). Bootstrapping with 5,000 resamples was employed to determine the significance of direct and indirect effects. The mediating role of autonomy was also tested. To address common method bias, Harman\u0026rsquo;s single-factor test and full collinearity VIF checks were applied (Kock, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). No significant bias was detected. This comprehensive analysis approach ensured the reliability and validity of the findings.\u003c/p\u003e\u003c/div\u003e"},{"header":"4. Results and Analysis","content":"\u003cdiv id=\"Sec15\" class=\"Section2\"\u003e\u003ch2\u003e4.1 Descriptive Statistics and Respondent Profile\u003c/h2\u003e\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e presents the demographic characteristics of the 256 valid responses retained after the initial data cleaning process. The descriptive statistics provide a foundational overview of the sample across key dimensions, including gender, age, educational background, industry sector, and preferred work arrangements. This diversity enhances the credibility and generalizability of the structural model, particularly in the context of Generation Z employees within Malaysian SMEs. In terms of gender distribution, the sample was relatively balanced, with 52.3% female and 47.7% male respondents. This proportion provides a fair representation of gender perspectives in the analysis. With respect to age, all participants fell within the 18\u0026ndash;28 range, consistent with the operational definition of Generation Z. The largest subgroup (58.2%) was aged between 22 and 25 years, followed by 27.8% aged 26\u0026ndash;28 and 14.1% aged 18\u0026ndash;21. This distribution is indicative of early-career individuals who are either entering the labor market or transitioning into more stable employment roles within SMEs.\u003c/p\u003e\u003cp\u003eRegarding educational attainment, nearly half of the respondents (48.4%) possessed a bachelor\u0026rsquo;s degree, while 28.1% held a diploma or equivalent qualification. An additional 17.2% had completed postgraduate studies, and 6.3% reported secondary-level education as their highest level. This reflects a moderately to highly educated Gen Z workforce, consistent with broader educational trends in Malaysia's urban SME sector. Participants also represented a variety of industry sectors, with 35.2% employed in services, 25.4% in retail, 20.3% in manufacturing, and 19.1% in technology. This sectoral spread aligns with the composition of Malaysia\u0026rsquo;s SME ecosystem, enhancing the generalizability of the findings across business types. Crucially, the study focused on employees\u0026rsquo; preferred work arrangements, rather than their actual employment settings. Respondents were asked to identify which work arrangement they personally preferred among four options: remote work, hybrid work, flexible hours, and on-site work. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, on-site work emerged as the most preferred format, with 40.6% of respondents favoring a traditional, structured work environment. This likely reflects the operational realities of many SME roles that require physical presence, such as those in retail and manufacturing.\u003c/p\u003e\u003cp\u003eHybrid work was the second most preferred option (32.4%), indicating strong interest among Gen Z employees in balancing in-office interaction with remote flexibility. A smaller portion of respondents (16.4%) preferred fully remote work, reflecting both aspirational autonomy and the limitations of digital infrastructure or organizational readiness in SMEs. Lastly, flexible hours defined as autonomy over scheduling irrespective of location were preferred by 10.5% of the sample. While less common, this format still signals a segment of Gen Z that values control over time as much as control over space. The demographic and preference-based diversity within the sample provides a robust foundation for testing the hypothesized relationships in the structural model, particularly in examining how different preferred work arrangements influence perceived autonomy and, subsequently, retention intention among Generation Z employees.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eRespondent Demographic Profile (N\u0026thinsp;=\u0026thinsp;256)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDemographic Variable\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCategory\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eFrequency (n)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003ePercentage (%)\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGender\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e122\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e47.7%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFemale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e134\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e52.3%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eAge Group\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e18\u0026ndash;21\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e36\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e14.1%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e22\u0026ndash;25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e149\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e58.2%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e26\u0026ndash;28\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e71\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e27.8%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEducation Level\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSecondary\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e16\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e6.3%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDiploma\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e72\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e28.1%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBachelor\u0026rsquo;s degree\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e124\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e48.4%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePostgraduate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e44\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e17.2%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eIndustry Sector\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eServices\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e90\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e35.2%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRetail\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e65\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e25.4%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eManufacturing\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e52\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e20.3%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eTechnology\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e49\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e19.1%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePreferred Work Type\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOn-site Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e104\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e40.6%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHybrid Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e83\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e32.4%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRemote Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e42\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e16.4%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFlexible Hours\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e27\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e10.5%\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec16\" class=\"Section2\"\u003e\u003ch2\u003e4.2 Measurement Model Assessment\u003c/h2\u003e\u003cp\u003eBefore evaluating the structural relationships between constructs, the measurement model was assessed to ensure that the reflective indicators met criteria for internal consistency reliability and construct validity. Following the established PLS-SEM two-step procedure (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), the analysis focused on (1) internal consistency reliability, (2) convergent validity, and (3) discriminant validity.\u003c/p\u003e\u003cdiv id=\"Sec17\" class=\"Section3\"\u003e\u003ch2\u003e4.2.1 Reliability and Convergent Validity\u003c/h2\u003e\u003cp\u003eTo evaluate the internal consistency and convergent validity of the measurement model, the following indices were examined for each construct: Cronbach\u0026rsquo;s Alpha, Composite Reliability (CR), and Average Variance Extracted (AVE). According to the guidelines by Hair et al. (\u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), values for Cronbach\u0026rsquo;s Alpha and CR above 0.70 indicate strong reliability, while AVE values above 0.50 suggest that constructs explain more than half of the variance in their indicators, confirming convergent validity (Fornell \u0026amp; Larcker, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e1981\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eAs displayed in Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e, all constructs exceed the recommended thresholds. This confirms that the observed indicators reliably measure their intended latent variables and possess adequate internal consistency and shared variance.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eReliability and Convergent Validity\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCronbach\u0026rsquo;s Alpha\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eComposite Reliability (CR)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eAverage Variance Extracted (AVE)\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.86\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.90\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.66\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.87\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.91\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.68\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.84\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.89\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.64\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.83\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.88\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.62\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.89\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.93\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.72\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.88\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.92\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.71\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eAll constructs demonstrated excellent reliability and strong convergent validity, indicating robust psychometric properties across the measurement model. These findings are consistent with prior empirical studies in workplace design and motivational psychology, which emphasize the role of preference-aligned work structures and autonomy in shaping employee attitudes and behavioral intentions (Gagn\u0026eacute; \u0026amp; Deci, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Wang et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec18\" class=\"Section3\"\u003e\u003ch2\u003e4.2.2 Convergent Validity\u003c/h2\u003e\u003cp\u003eConvergent validity was assessed through the examination of individual indicator loadings and the Average Variance Extracted (AVE) for each construct. According to Fornell and Larcker (\u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e1981\u003c/span\u003e), convergent validity is confirmed when item loadings exceed 0.70 and the construct\u0026rsquo;s AVE is greater than 0.50. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e, all item loadings meet or exceed the 0.70 threshold, and each construct comprises five items that strongly represent their latent dimensions. These findings affirm that each item contributes substantially to its respective construct and that convergent validity is well-established across the measurement model.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eOuter Loadings and Convergent Validity Indicators\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eItem Code\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOuter Loading\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.85\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.79\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.81\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.83\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHWP1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.81\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHWP2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.84\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHWP3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.78\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHWP4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.80\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eHWP5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFHP1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.80\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFHP2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.83\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFHP3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.77\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFHP4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.79\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFHP5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.81\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOWP1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.78\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOWP2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.80\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOWP3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.76\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOWP4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.79\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOWP5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePA1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.86\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePA2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.83\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePA3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.80\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePA4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.85\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePA5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRI1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRI2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.79\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRI3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.77\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRI4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.81\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRI5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.84\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eAll items also demonstrated Variance Inflation Factor (VIF) values below 3.3, indicating no critical multicollinearity issues in the measurement model (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). The strong outer loadings and consistent construct performance further support the convergent validity of the model.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec19\" class=\"Section3\"\u003e\u003ch2\u003e4.2.3 Discriminant Validity\u003c/h2\u003e\u003cp\u003eDiscriminant validity was assessed using both the Fornell\u0026ndash;Larcker criterion and the Heterotrait\u0026ndash;Monotrait ratio (HTMT), following the guidelines of Henseler et al. (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). The Fornell\u0026ndash;Larcker criterion compares the square root of the Average Variance Extracted (AVE) for each construct against its correlations with other constructs. A construct is considered discriminantly valid if its AVE square root (diagonal value) is greater than any of its inter-construct correlations (off-diagonal values). As shown in Table\u0026nbsp;\u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e, all constructs meet this criterion. The square roots of the AVEs are higher than the corresponding correlations with other constructs, indicating that each construct shares more variance with its indicators than with other constructs. This confirms discriminant validity among the six latent variables in the model.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eDiscriminant Validity \u0026ndash; Fornell\u0026ndash;Larcker Criterion\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"7\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eHWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eFHP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eOWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003ePA\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eRI\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference (RWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.81\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference (HWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.58\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.82\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference (FHP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.53\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.60\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.79\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference (OWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.45\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.50\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.48\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.78\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy (PA)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.49\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.55\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.52\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.46\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.85\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention (RI)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.44\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.50\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.48\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.42\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.63\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e\u003cp\u003e0.84\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eTo further confirm discriminant validity, the HTMT (Heterotrait\u0026ndash;Monotrait Ratio) was computed. According to Henseler et al. (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2015\u003c/span\u003e), HTMT values should be below 0.85 (conservative threshold) to demonstrate discriminant validity. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab6\" class=\"InternalRef\"\u003e6\u003c/span\u003e, all values fall within acceptable limits, supporting the empirical distinctiveness of each construct in the model.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eDiscriminant Validity \u0026ndash; HTMT Ratio\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"7\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eHWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eFHP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eOWP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003ePA\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eRI\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference (RWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference (HWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.69\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference (FHP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.63\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.72\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference (OWP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.57\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.60\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.61\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy (PA)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.58\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.65\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.61\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.54\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention (RI)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.52\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.60\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.59\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.50\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.68\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e-\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThese results collectively confirm that the measurement model demonstrates strong discriminant validity across all constructs, validating its use in the subsequent structural path analysis. The clear separation between work preference types and outcome variables supports the theoretical integrity and empirical robustness of the model.\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003cdiv id=\"Sec20\" class=\"Section2\"\u003e\u003ch2\u003e4.3 Structural Model Assessment\u003c/h2\u003e\u003cp\u003eThe structural model was evaluated to assess its explanatory power, predictive relevance, and significance of hypothesized paths. The evaluation involved analysis of the coefficient of determination (R\u0026sup2;) and the Stone\u0026ndash;Geisser\u0026rsquo;s Q\u0026sup2; statistic based on blindfolding procedures, as recommended in PLS-SEM methodology (Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e\u003cdiv id=\"Sec21\" class=\"Section3\"\u003e\u003ch2\u003e4.3.1 Coefficient of Determination (R\u0026sup2;)\u003c/h2\u003e\u003cp\u003eAs shown in Table\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e, the coefficient of determination (R\u0026sup2;) was used to evaluate the amount of variance explained in the endogenous constructs. The R\u0026sup2; value for Perceived Autonomy was 0.47, indicating that 47% of its variance was explained by the combined effects of Remote Work Preference, Hybrid Work Preference, and Flexible Hours Preference. Meanwhile, the R\u0026sup2; value for Retention Intention was 0.59, suggesting that 59% of the variation in retention outcomes was accounted for by Perceived Autonomy and the three work-type preferences. According to Cohen (\u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1988\u003c/span\u003e), R\u0026sup2; values of 0.26 and above are considered substantial in behavioral and social sciences. Thus, both values demonstrate that the structural model has moderate to substantial explanatory power.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eCoefficient of Determination (R\u0026sup2;)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEndogenous Construct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eR\u0026sup2; Value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eInterpretation\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.47\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eModerate explanatory power\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.59\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSubstantial explanatory power\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec22\" class=\"Section3\"\u003e\u003ch2\u003e4.3.2 Predictive Power and Predictive Relevance of the Proposed Model\u003c/h2\u003e\u003cp\u003eTo assess predictive relevance, the Q\u0026sup2; values were calculated using the blindfolding procedure in SmartPLS. A Q\u0026sup2; value greater than zero indicates that the model has predictive relevance for a specific endogenous construct (Chin, \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e1998\u003c/span\u003e; Hair et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). As shown in Table\u0026nbsp;\u003cspan refid=\"Tab8\" class=\"InternalRef\"\u003e8\u003c/span\u003e, Q\u0026sup2; = 0.34 for Perceived Autonomy and Q\u0026sup2; = 0.42 for Retention Intention. These results reflect medium to large predictive relevance, supporting the model\u0026rsquo;s capability not only to explain but also to predict unseen data.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab8\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003ePredictive Power and Predictive Relevance of the Proposed Model\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstruct\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eR\u0026sup2;\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003ePredictive Power\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eQ\u0026sup2;\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003ePredictive Relevance\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.470\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eModerate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.340\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eMedium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRetention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.590\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSubstantial\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.420\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eLarge\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThese findings support the overall predictive quality and structural strength of the proposed research model, affirming its suitability for exploring generational work design and retention dynamics in Malaysian SMEs.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec23\" class=\"Section3\"\u003e\u003ch2\u003e4.3.3 Effect Size Assessment (f\u0026sup2;)\u003c/h2\u003e\u003cp\u003eTo complement the R\u0026sup2; analysis, effect sizes (f\u0026sup2;) were calculated to assess the relative contribution of each exogenous variable to the explained variance of the endogenous constructs. According to Cohen (\u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1988\u003c/span\u003e), f\u0026sup2; values of 0.02, 0.15, and 0.35 indicate small, medium, and large effects, respectively. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab9\" class=\"InternalRef\"\u003e9\u003c/span\u003e, remote work preference and hybrid work preference demonstrate medium effect sizes on perceived autonomy, indicating their strong influence on employees\u0026rsquo; psychological experience of volition and control. Flexible hours preference shows a small to medium effect, while on-site work preference displays a small but significant contribution. These results suggest that although autonomy is most strongly enhanced through flexible and hybrid arrangements, some Gen Z employees may also perceive autonomy when on-site work aligns with their personal values or lifestyle. Perceived autonomy, in turn, exhibits a medium effect size on retention intention, reinforcing its role as a core psychological driver of Gen Z loyalty in the workplace. These findings support the theoretical view that perceived autonomy is not just a mediating factor but a powerful determinant of retention, regardless of the structural work format.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab9\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 9\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eEffect Sizes (f\u0026sup2;) of Predictor Variables\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePath\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003ef\u0026sup2; Effect Size\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eInterpretation\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference \u0026rarr; PA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.16\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eMedium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference \u0026rarr; PA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.22\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eMedium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference \u0026rarr; PA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.10\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall to Medium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference \u0026rarr; PA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.06\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference \u0026rarr; RI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.08\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference \u0026rarr; RI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.14\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall to Medium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference \u0026rarr; RI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.07\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference \u0026rarr; RI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.05\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eSmall\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy \u0026rarr; RI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.19\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eMedium\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThese results affirm the practical value of aligning work structures with employee preferences, whether remote, hybrid, flexible, or on-site. While flexibility enhances perceived autonomy more strongly overall, on-site arrangements also play a role when they reflect individual alignment. The findings emphasize the importance of designing autonomy-supportive environments, not just flexible ones, to drive retention among Gen Z employees in Malaysian SMEs.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec24\" class=\"Section3\"\u003e\u003ch2\u003e4.3.4 Path Coefficients and Hypothesis Testing\u003c/h2\u003e\u003cp\u003ei. Direct Relationships\u003c/p\u003e\u003cp\u003eThe structural model results reveal that all four work-type preferences remote, hybrid, flexible hours, and on-site work have significant effects on perceived autonomy and retention intention. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab10\" class=\"InternalRef\"\u003e10\u003c/span\u003e, remote, hybrid, and flexible hours preferences are positively associated with both perceived autonomy and intention to stay, indicating that Gen Z employees who are offered these preferred formats feel more autonomous and are more likely to remain in their organizations. Interestingly, on-site work preference also demonstrates a significant but relatively weaker positive effect on perceived autonomy and retention intention. This suggests that, although less popular among Gen Z employees, some individuals may still prefer traditional work settings and derive autonomy and satisfaction when such preferences are respected. In addition, perceived autonomy maintains a strong and significant positive effect on retention intention, confirming its central role in Gen Z workplace motivation and commitment. These findings underscore the importance of aligning work arrangements with individual preferences, rather than assuming a one-size-fits-all approach to flexibility.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab10\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 10\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eDirect Effects and Path Coefficients\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePath\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePath Coefficient (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificance\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference \u0026rarr; Perceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.26\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference \u0026rarr; Perceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.31\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference \u0026rarr; Perceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.22\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.003\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference \u0026rarr; Perceived Autonomy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.17\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.009\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work Preference \u0026rarr; Retention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.20\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.005\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work Preference \u0026rarr; Retention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours Preference \u0026rarr; Retention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.18\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.007\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work Preference \u0026rarr; Retention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.15\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.015\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePerceived Autonomy \u0026rarr; Retention Intention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.36\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThese results emphasize that autonomy-supportive environments are not limited to remote or hybrid setups alone. When employees regardless of whether they prefer on-site or flexible formats are matched with their preferred work structure, they experience greater autonomy and are more likely to stay. This affirms the importance of preference alignment, not just flexibility, in retaining Gen Z talent in SMEs.\u003c/p\u003e\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab11\" class=\"InternalRef\"\u003e11\u003c/span\u003e illustrates the direct effects of various preferred work types on both retention intention and perceived autonomy among Generation Z employees in Malaysian SMEs. The findings reveal a consistent ranking pattern across both outcomes, with hybrid work demonstrating the strongest impact on retention (β\u0026thinsp;=\u0026thinsp;0.25) and autonomy (β\u0026thinsp;=\u0026thinsp;0.31), positioning it as the most effective arrangement for fostering both organizational commitment and psychological empowerment. Remote work follows closely, exhibiting a substantial influence on retention intention (β\u0026thinsp;=\u0026thinsp;0.20) and perceived autonomy (β\u0026thinsp;=\u0026thinsp;0.26), highlighting its capacity to enhance employee agency and loyalty. Flexible hours, while still significant (RI: β\u0026thinsp;=\u0026thinsp;0.18; autonomy: β\u0026thinsp;=\u0026thinsp;0.22), rank third, suggesting that temporal flexibility alone may be less impactful than spatial or hybrid flexibility in meeting Gen Z expectations. On-site work, although positively associated with both outcomes (RI: β\u0026thinsp;=\u0026thinsp;0.15; autonomy: β\u0026thinsp;=\u0026thinsp;0.17), ranks lowest, indicating that traditional work arrangements are least aligned with the autonomy-driven preferences of this generation. Overall, the results underscore the importance of aligning work structures with generational expectations, particularly favoring models that enhance flexibility and control to improve both autonomy and retention outcomes.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab11\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 11\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eImpact of Preferred Work Types on Retention Intention and Perceived Autonomy\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePreferred Work Type\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eβ with Retention Intention (RI)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRank Based Impact\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eβ with Perceived Autonomy\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eRank Based Impact\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.31\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.20\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.26\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.18\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.22\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e3\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.15\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.17\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e4\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eii. Mediating Results\u003c/p\u003e\u003cp\u003eThe mediation analysis summarized in Table\u0026nbsp;\u003cspan refid=\"Tab12\" class=\"InternalRef\"\u003e12\u003c/span\u003e confirms that Perceived Autonomy significantly mediates the relationship between each preferred work type and Retention Intention among Generation Z employees in Malaysian SMEs. Across all four work types remote, hybrid, flexible hours, and on-site both direct and indirect effects are statistically significant, indicating consistent patterns of partial mediation. These results affirm that matching employees with their preferred work arrangements not only has a direct influence on their intention to stay but also indirectly enhances retention by increasing their psychological sense of autonomy. Among the tested work modes, hybrid work exhibits the strongest total effect (β\u0026thinsp;=\u0026thinsp;0.36), with both its direct effect (β\u0026thinsp;=\u0026thinsp;0.25, p\u0026thinsp;=\u0026thinsp;0.001) and indirect effect via autonomy (β\u0026thinsp;=\u0026thinsp;0.11, p\u0026thinsp;=\u0026thinsp;0.000) being highly significant. This underscores hybrid work as the most effective configuration for simultaneously supporting autonomy and improving retention outcomes. Remote work follows with a total effect of β\u0026thinsp;=\u0026thinsp;0.29, while flexible hours (β\u0026thinsp;=\u0026thinsp;0.26) and on-site work (β\u0026thinsp;=\u0026thinsp;0.21) also yield significant though comparatively weaker impacts. These findings reinforce the conclusion that perceived autonomy acts as a crucial psychological mechanism linking structural preferences to behavioral commitment.\u003c/p\u003e\u003cp\u003eImportantly, the mediating role of autonomy is not limited to flexible or digital formats. Even in traditional on-site settings, when such arrangements align with individual preferences, they can still enhance feelings of control and reduce turnover intentions. Thus, it is not merely flexibility that matters but alignment between work type and employee expectations, which enables autonomy and strengthens organizational commitment. Overall, the mediation results consistently support Self-Determination Theory, validating autonomy as a core explanatory factor in Gen Z retention behavior. As workplaces continue to evolve, hybrid models emerge as the most future-ready solution, offering a balance of structure and freedom that maximizes both retention and psychological empowerment for the emerging workforce.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab12\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 12\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eMediation Analysis Summary\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"10\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c10\" colnum=\"10\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eMediated Path\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDirect Effect (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eStatus\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eIndirect Effect (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eStatus\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e\u003cp\u003eTotal Effect (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c9\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c10\"\u003e\u003cp\u003eMediation Type\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRemote Work \u0026rarr; Autonomy \u0026rarr; Retention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.20\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.005\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.09\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c8\"\u003e\u003cp\u003e0.29\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c9\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u003cp\u003ePartial mediation\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHybrid Work \u0026rarr; Autonomy \u0026rarr; Retention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.11\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c8\"\u003e\u003cp\u003e0.36\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c9\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u003cp\u003ePartial mediation\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFlexible Hours \u0026rarr; Autonomy \u0026rarr; Retention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.18\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.007\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.08\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.002\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c8\"\u003e\u003cp\u003e0.26\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c9\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u003cp\u003ePartial mediation\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOn-Site Work \u0026rarr; Autonomy \u0026rarr; Retention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.15\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.015\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.06\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.009\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003eSignificant\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c8\"\u003e\u003cp\u003e0.21\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c9\"\u003e\u003cp\u003e0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u003cp\u003ePartial mediation\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003cdiv id=\"Sec25\" class=\"Section2\"\u003e\u003ch2\u003e4.4 Discussion and Implications\u003c/h2\u003e\u003cp\u003eThe mediation analysis offers decisive insights into the mechanism by which preferred work structures influence retention among Generation Z employees. Specifically, the results confirm that perceived autonomy serves as a robust and consistent mediator between all four tested work types hybrid, remote, flexible hours, and on-site and retention intention. This mediating effect reinforces the central proposition of Self-Determination Theory (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e): that the experience of autonomy is a psychological prerequisite for sustained engagement and organizational commitment. In the context of Malaysian SMEs, where structural constraints often limit extrinsic rewards, autonomy emerges as the critical internal resource that translates preferred work arrangements into long-term retention outcomes.\u003c/p\u003e\u003cdiv id=\"Sec26\" class=\"Section3\"\u003e\u003ch2\u003e4.4.1 Interpretation of Results Patterns\u003c/h2\u003e\u003cp\u003eThe mediation analysis confirms that perceived autonomy consistently mediates the relationship between preferred work types and retention intention among Generation Z employees. Among all models, hybrid work shows the strongest total effect (β\u0026thinsp;=\u0026thinsp;0.36), with both direct and indirect paths being significant. This suggests that hybrid work not only provides structural flexibility but also satisfies Gen Z\u0026rsquo;s psychological need for autonomy, leading to greater organizational commitment. These findings support Self-Determination Theory, which posits that autonomy is essential for intrinsic motivation and sustained engagement (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e). The result also aligns with Laker et al. (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), who found hybrid models to be the most effective for improving retention through enhanced employee experience.\u003c/p\u003e\u003cp\u003eRemote work ranked second (total β\u0026thinsp;=\u0026thinsp;0.29), confirming that spatial flexibility enhances autonomy (β\u0026thinsp;=\u0026thinsp;0.26) and subsequently retention. However, its slightly lower effect compared to hybrid work may reflect reduced opportunities for collaboration and social connection, which Gen Z still values (Tan \u0026amp; Adamu, \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Flexible hours showed a weaker mediated effect (total β\u0026thinsp;=\u0026thinsp;0.26; indirect β\u0026thinsp;=\u0026thinsp;0.08), indicating that temporal control alone is less impactful than spatial or blended flexibility. This echoes findings by Putnam et al. (\u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2014\u003c/span\u003e), who argued that schedule autonomy is most effective when paired with locational and task-related freedom.\u003c/p\u003e\u003cp\u003eInterestingly, on-site work, while the least autonomy-rich, still demonstrated a significant mediation effect (total β\u0026thinsp;=\u0026thinsp;0.21), reinforcing the idea that autonomy is not solely tied to flexibility but to preference alignment. Even traditional setups can be autonomy-supportive if they reflect individual choice (Su \u0026amp; Reeve, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2011\u003c/span\u003e). Overall, these patterns reaffirm autonomy as a critical mechanism linking work structure and retention, with hybrid work emerging as the most effective strategy for future-focused talent retention.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec27\" class=\"Section3\"\u003e\u003ch2\u003e4.4.2 Theoretical and Empirical Contributions\u003c/h2\u003e\u003cp\u003eThis study makes several important theoretical contributions by clarifying the mediating role of perceived autonomy in the relationship between preferred work types and retention intention a mechanism that has received limited attention in generational workforce literature, particularly within emerging-market SME contexts. The findings extend the Self-Determination Theory (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e) by showing that autonomy is not only an independent predictor of motivation but also a critical mediator that transforms flexible work structures into behavioral outcomes such as retention. While prior research has often conflated flexibility with autonomy, this study empirically distinguishes between them, revealing that preference alignment, not flexibility alone, drives perceived autonomy and retention (Gagn\u0026eacute; \u0026amp; Deci, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eFrom an empirical standpoint, the results provide novel evidence from the Malaysian SME sector, where rigid hierarchies and limited HR systems are still dominant (SME Corp Malaysia, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Unlike studies situated in developed economies or large corporations (e.g., Wang et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), this research shows that even in constrained environments, perceived autonomy can be cultivated through thoughtful work design and respect for employee preferences. Moreover, the consistent significance of the mediation effects across all work types suggests that autonomy-supportive environments are universally valuable, regardless of the specific work format. This reinforces the applicability of both SDT and the Job Demands\u0026ndash;Resources (JD-R) model (Bakker \u0026amp; Demerouti, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) in understanding how psychological resources operate under real-world structural limitations.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec28\" class=\"Section3\"\u003e\u003ch2\u003e4.4.3 Practical Implications\u003c/h2\u003e\u003cp\u003eThe mediation results carry urgent and strategic implications for workforce management within Malaysian SMEs. As perceived autonomy consistently mediates the relationship between preferred work types and retention, it becomes clear that organizations must shift from simply offering flexible work options to intentionally designing autonomy-supportive environments. In this study, hybrid work demonstrated the highest total effect on retention intention due to its ability to simultaneously provide structural flexibility and satisfy psychological needs. Thus, hybrid work should be institutionalized as the dominant model in SME HR policy, especially for attracting and retaining Gen Z employees. SMEs should implement structured hybrid schedules that balance remote autonomy with periodic in-person collaboration, which not only satisfies autonomy but also supports relatedness a key component of Self-Determination Theory (Deci \u0026amp; Ryan, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2000\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eTo operationalize these findings, organizations should focus on preference alignment as a core HR principle. This means allowing employees to select from work arrangements that best match their individual needs and values, rather than enforcing a uniform policy. Research by Laker et al. (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) emphasizes that such alignment enhances the psychological contract and improves retention outcomes, particularly for early-career employees. Beyond offering choice, firms must also train managers to adopt autonomy-supportive behaviors, such as providing decision latitude, avoiding micromanagement, and enabling flexible goal-setting (Gagn\u0026eacute; \u0026amp; Deci, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2005\u003c/span\u003e). These leadership practices are essential for reinforcing the internal perception of autonomy, even in roles that are structurally constrained.\u003c/p\u003e\u003cp\u003eAdditionally, SMEs should invest in monitoring systems that track perceived autonomy, not just turnover rates. Including autonomy metrics in employee surveys and stay interviews will help organizations diagnose potential disengagement before it results in exit behavior. This is particularly relevant in Malaysian SMEs, where limited resources often preclude high compensation or formalized career progression. As shown in Bakker and Demerouti\u0026rsquo;s (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) JD-R model, psychological resources like autonomy can compensate for structural job demands, offering a cost-effective retention tool. Therefore, embedding autonomy into job design, team structures, and performance systems is no longer optional it is imperative for organizational survival in a Gen Z\u0026ndash;driven labor market.\u003c/p\u003e\u003cp\u003eUltimately, the future of work in SMEs must be personalized, autonomy-enabled, and structurally diverse. Hybrid work, supported by psychological empowerment and participatory management, offers the most promising path forward. Firms that fail to adapt risk alienating a generation that equates meaningful work not with location or hours, but with control, trust, and purpose.\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e"},{"header":"5. Conclusion","content":"\u003cp\u003eThis study aimed to examine how different Preferred Work Types influence Retention Intention among Generation Z employees in Malaysian SMEs, with Perceived Autonomy as a mediating variable. Using PLS-SEM analysis on data collected from 256 Gen Z employees, the results revealed that all four-work preferences hybrid, remote, flexible hours, and on-site work significantly impact retention both directly and indirectly through perceived autonomy. Among them, hybrid work emerged as the most effective format, offering the strongest total effect on retention by enhancing both structural and psychological dimensions of autonomy. The study contributes to literature by integrating Self-Determination Theory with empirical workplace preferences, offering practical guidance for SME retention strategies in a Gen Z-driven labor market. However, limitations include reliance on cross-sectional data and focus on a single generational cohort within Malaysia, which may limit broader generalizability. Future research should employ longitudinal or experimental designs and explore sector-specific constraints or cultural variations in autonomy and work-type preferences. Additionally, examining the role of managerial autonomy support as a moderator may offer deeper insight into organizational practices that strengthen Gen Z retention.\u003c/p\u003e"},{"header":"Declarations","content":"\u003ch3\u003eEthical Considerations\u003c/h3\u003e\n\u003cp\u003eThis study was conducted in accordance with the ethical standards and guidelines set by Universiti Kebangsaan Malaysia (UKM). Ethical approval was obtained from the Research Ethics Committee of UKM prior to data collection (Reference No: UKM PPI/111/8/JEP-2025-016). All participants were informed about the purpose of the study and their rights as respondents. Participation was voluntary, and informed consent was obtained before the commencement of the survey. Confidentiality and anonymity were strictly maintained, with no personal identifiers collected or disclosed. The study adhered to the principles of academic integrity and intellectual property protection by fully citing all sources used. Data collection, analysis, and reporting were carried out with transparency and objectivity to minimize potential bias and ensure the reliability of findings. The results have been interpreted responsibly with consideration for their implications in managerial practices and policy development concerning Generation Z employees in Malaysian SMEs.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eEthical Approval and Consent to Participate\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThis study received ethical approval from the Research Ethics Committee of Universiti Kebangsaan Malaysia (UKM) under Reference No: UKM PPI/111/8/JEP-2025-016. Informed consent was obtained from all participants prior to data collection.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eConsent for Publication\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eFunding\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThis research received no external funding.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompeting Interests\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe authors declare no competing interests.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eData Availability\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe data supporting the findings of this study are available from the corresponding author upon reasonable request.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eBakker, A. B., \u0026amp; Demerouti, E. (2017). Job demands\u0026ndash;resources theory: Taking stock and looking forward. 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M., Ringle, C., \u0026amp; Sarstedt, M. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). SAGE Publications.\u003c/li\u003e\n\u003cli\u003eHenseler, J., Ringle, C. M., \u0026amp; Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115\u0026ndash;135. https://doi.org/10.1007/s11747-014-0403-8\u003c/li\u003e\n\u003cli\u003eHiBob. (2024). Managing Gen Z: Talent trends for a new workforce. https://www.hibob.com\u003c/li\u003e\n\u003cli\u003eHiredly. (2025). Workplace culture report: Malaysia. https://www.hiredly.com\u003c/li\u003e\n\u003cli\u003eIpsen, C., van Veldhoven, M., Kirchner, K., \u0026amp; Hansen, J. P. (2022). Six key advantages and disadvantages of working from home in Europe during COVID-19. 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Human Resource Management International Digest, 30(3), 1\u0026ndash;4. \u003c/li\u003e\n\u003cli\u003eLaker, B., Patel, C., Malik, A., \u0026amp; Budhwar, P. (2022). Why flexible working arrangements are good for both employees and employers. MIT Sloan Management Review. \u003c/li\u003e\n\u003cli\u003eLaker, B., Roulet, T., \u0026amp; Whittington, R. (2022). The Great Resignation didn\u0026rsquo;t start with the pandemic. Harvard Business Review. \u003c/li\u003e\n\u003cli\u003eMessenger, J. C., \u0026amp; Gschwind, L. (2016). Three generations of telework: New ICTs and the (r)evolution from home office to virtual office. New Technology, Work and Employment, 31(3), 195\u0026ndash;208. https://doi.org/10.1111/ntwe.12073\u003c/li\u003e\n\u003cli\u003ePutnam, L. L., Myers, K. K., \u0026amp; Gailliard, B. M. (2014). Examining the tensions in workplace flexibility and exploring options for new directions. Human Relations, 67(4), 413\u0026ndash;440. https://doi.org/10.1177/0018726713495704\u003c/li\u003e\n\u003cli\u003eRandstad. (2022). Employer Brand Research Malaysia: Gen Z insights. Randstad Malaysia.\u003c/li\u003e\n\u003cli\u003eShadovnik, S. (2024, October 14). Why so many companies are firing Gen Z employees. Inc. Magazine. https://www.inc.com/susan-shadovnik/why-gen-z-are-being-fired.html\u003c/li\u003e\n\u003cli\u003eSingh, P., Dhir, S., \u0026amp; Gaur, A. (2021). Understanding Generation Z: Characteristics, preferences, and challenges. Journal of Business and Management Studies, 7(3), 45\u0026ndash;56.\u003c/li\u003e\n\u003cli\u003eSME Corp Malaysia. (2023). SME Annual Report 2022/23. https://www.smecorp.gov.my\u003c/li\u003e\n\u003cli\u003eSu, Y. L., \u0026amp; Reeve, J. (2011). A meta-analysis of the effectiveness of intervention programs designed to support autonomy. Educational Psychology Review, 23(1), 159\u0026ndash;188. https://doi.org/10.1007/s10648-010-9142-7\u003c/li\u003e\n\u003cli\u003eTan, H. L., \u0026amp; Adamu, M. Y. (2023). Work-life integration and retention of Generation Z employees in Malaysian SMEs: The role of workplace autonomy. Asia-Pacific Journal of Human Resources. https://doi.org/10.1111/1744-7941.12456\u003c/li\u003e\n\u003cli\u003evan Gelder, M., Haar, J., \u0026amp; Russo, M. (2023). How hybrid work shapes employee voice and engagement: A multilevel perspective. Journal of Vocational Behavior, 142, 103819. https://doi.org/10.1016/j.jvb.2023.103819\u003c/li\u003e\n\u003cli\u003eWang, B., Liu, Y., Qian, J., \u0026amp; Parker, S. K. (2021). Achieving effective remote working during the COVID-19 pandemic: A work design perspective. Applied Psychology, 70(1), 16\u0026ndash;59. https://doi.org/10.1111/apps.12290\u003c/li\u003e\n\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Generation Z, Preferred Work Types, Perceived Autonomy, Retention Intention, Malaysian SMEs","lastPublishedDoi":"10.21203/rs.3.rs-7147082/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7147082/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study investigates the extent to which Generation Z employees\u0026rsquo; preferred work types namely remote work, hybrid arrangements, flexible hours, and on-site settings influence their intention to remain within small and medium-sized enterprises (SMEs) in Malaysia. Central to this inquiry is the mediating role of perceived autonomy in shaping this relationship. Drawing upon a quantitative, cross-sectional survey design, data were collected from a sample of 256 Gen Z employees across various Malaysian SMEs. The analytical framework employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine both direct and mediated effects. The findings reveal that all four work type preferences exert significant influence on both perceived autonomy and retention intention, with hybrid work emerging as the most impactful configuration. Furthermore, the mediation analysis establishes that perceived autonomy partially mediates the relationship between preferred work types and employee retention, underscoring its function as a pivotal psychological mechanism that connects structural workplace features to behavioral outcomes. This study represents one of the earliest empirical contributions to the literature by examining how the alignment between work preferences and autonomy perceptions affects Gen Z retention within the context of emerging-market SMEs. The findings yield actionable implications for SME leaders, emphasizing the importance of designing hybrid and autonomy-enhancing work environments to foster long-term organizational commitment among younger workforce cohorts.\u003c/p\u003e","manuscriptTitle":"Designing Future-Ready Workplaces: How Gen Z's Preferred Work Type Influence Retention Intention; Mediating Role of Perceived Autonomy in Malaysian SMEs","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-08-12 06:28:25","doi":"10.21203/rs.3.rs-7147082/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"f22f2939-8ceb-4cf0-b04c-060fb10f236e","owner":[],"postedDate":"August 12th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-09-01T16:01:50+00:00","versionOfRecord":{"articleIdentity":"rs-7147082","link":"https://doi.org/10.1186/s43093-025-00643-2","journal":{"identity":"future-business-journal","isVorOnly":false,"title":"Future Business Journal"},"publishedOn":"2025-08-26 15:57:48","publishedOnDateReadable":"August 26th, 2025"},"versionCreatedAt":"2025-08-12 06:28:25","video":"","vorDoi":"10.1186/s43093-025-00643-2","vorDoiUrl":"https://doi.org/10.1186/s43093-025-00643-2","workflowStages":[]},"version":"v1","identity":"rs-7147082","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7147082","identity":"rs-7147082","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}