Abstract

This quantitative investigation centres on the complexities of cultivating and sustaining Sustainable Employability (SE) among Generation Z personnel operating within the highly dynamic and demanding Digital Industry. Utilizing Structural Equation Modeling (SEM), the study analyzed data collected from Gen Z employees in this sector. The principal objective was to assess the direct impact of Servant Leadership (SL) on SE, alongside the hypothesized mediating role of Psychological Safety (PS) and the moderating influence of Psychological Capital (PsyCap). The core findings confirm that SL has a significant, positive effect on SE. A critical result reveals the substantial mediating effect of PS, which transmits the positive association between SL and SE. Furthermore, the analysis indicates that PsyCap significantly strengthens (moderates) the positive relationship between PS and SE. These outcomes suggest that SL's effectiveness in promoting SE among Gen Z is fundamentally contingent upon the establishment of a psychologically secure work environment. Critically, this positive influence is substantially amplified when employees possess robust internal resources, particularly PsyCap. The study's most salient theoretical contribution is the development of a model that empirically validates PS as an essential transmission mechanism and PsyCap as a necessary amplifier for Gen Z’s adaptation and resilience in the digital environment.