Balancing the Scales: The Impact of Workplace Flexibility on Gen Z Employees' Performance and Well-Being in the Banking Sector

Purpose: This study examines the impact of workplace flexibility on employee performance and well-being among Gen Z employees in the banking sector, with distributive justice as a moderating variable.Methodology: This study employs a survey-based descriptive approach with a cross-sectional design to investigate the impact of workplace flexibility on Gen Z employees in Lahore's banking sector.Data were analysed using SPSS and AMOS, applying Structural Equation Modeling (SEM) on responses from 176 participants.Findings: The findings reveal that workplace flexibility positively influences both employee performance and well-being.Flexibility allows employees to balance personal and professional demands, enhancing productivity and reducing stress.However, the study highlights a surprising negative moderating effect of distributive justice on performance, suggesting that perceived inequities in flexible work arrangements can diminish the benefits of flexibility.Conversely, a slight positive moderation effect on well-being underscores the role of fairness in fostering a supportive work environment.Significance Value: The research has significant implications for managing Gen Z employees, who value autonomy, work-life balance, and fair treatment.The findings emphasize the importance of equitable implementation of flexible work policies to maintain trust and morale.The study contributes to the literature on workplace flexibility, particularly in high-pressure sectors like banking, by addressing gaps in understanding its relationship with employee outcomes.Limitations include a focus on Gen Z in Pakistan's banking sector, cross-sectional design, and restricted exploration of organizational justice dimensions.