Designing future-ready workplaces: how Gen Z’s preferred work type influence retention intention; mediating role of perceived autonomy in Malaysian SMEs

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 Modeling (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.