BRIDGING GENERATIONAL DIFFERENCES IN FAMILY-OWNED BUSINESS: ENHANCING EMPLOYEE PERFORMANCE AMONG MILLENNIALS AND GENERATION Z THROUGH JOB SATISFACTION

Fahrulia Emeralda¹, Achmad Ghazali²

Institute of Technology Bandung, MBA Jakarta Campus.

Email: [email protected], [email protected]

INFO ARTIKEL

ABSTRAK

Kata Kunci: Generational Diversity, Family Business Culture, Job Satisfaction, Millennials and Generation Z Characteristics, Employee Performance

This study examines the relationship between Millennials and Generation Z Characteristic, Family Business Culture, and Employee Performance, with Job Satisfaction as a mediating variable. The study use Keke Busana an established family-owned fashion business in Indonesia, as a case study. The study addresses the challenges brough by the distinct preferences of generations, particularly for Millennials and Generation Z who are now dominating the workforce, accounted for 53.81% out of the total Indonesianï¿½s workforce. Through the use of quantitative approach, data were gathered using survey questionnaires distributed to 110 Millennials and Generation Z employees of Keke Busana. The data collected were analyzed using the Structural Equation Modeling (SEM-PLS) to explore the complex correlation between the latent variables. The research aims to find out the best strategies for family businesses like Keke Busana to maximize their human resource, especially leveraging the strengths Millennials and Generation Z. The result shows positive correlation between variables, highlighting the importance of providing work-life balance, growth opportunities, companyï¿½s ability to adapt to work environment to generational preferences in order to enhance job satisfaction that has high significance to overall employee performance and productivity. However, despite the positive relationships, the result shows that there is not significant relationship between Millennials and Generation Z to employee performance, meaning that these traits do not independently drive positive influence in employee performance. Further, the study recommends actionable strategic action for family-owned businesses to manage generational diversity, foster collaboration, and achieve sustainable long-term success.

Introduction

The evolving workforce demographics are a global phenomenon affecting nearly every organization and business, including family businesses. Family businesses play a crucial role to the overall economic framework in both Indonesia and worldwide. On a global scale, these businesses represent about 65% to 80% of businesses worldwide (Soto Maciel et al., 2015), while responsible of the creation about 50% to 80% job opportunities in the world. Moreover, not only contributing a significant part to the world economy, the distinct business model is also projected to grow continuously and can represent 40% largest companies worldwide by 2025, which is an increase from just 15% in 2010. The positive trend indicates that family businesses are not merely existing and surviving. In Indonesia, the significance of family businesses is further evident with approximately 95% of local businesses being family-owned, while making up to 40% out of total nationï¿½s capitalization in major sectors such as real-estate, agriculture, and consumer goods (GPG, 2016). Besides, these businesses are estimated to have a total asset of IDR 134 trillion, representing about 25% of the nationï¿½s GDP (Pane & Christanti, 2023). Thus, it is strongly suggesting to get deeper understanding about the nature and characteristics of these businesses, especially for foreign entities entering Indonesian market, since there is strong likelihood that these businesses will potentially be their prospective suppliers, clients, or partners.

Getting deep understanding about generational diversity is really important for family businesses particularly with the fact that Indonesia is now experiencing its bonus demography due to high proportion of its population being in their productive age, which can lead to new opportunities resulted from its large working-age population that has the potential to enhance the nationï¿½s economic growth. Generation Z, who were born between 1997-2012 now dominates the market with 27.94% out of total population or about 74.93 million individuals. They are now surpassing the earlier generation Y or millennials (born between 1981-1996), that are now comprising 25.87% of the total population or about 69.38 million people that become the second largest group generation in the country. With these two generations dominating the market, indicating that Indonesia has a relatively youthful and energetic workforce that can contribute to its economic development.

As one of the family-owned businesses in Indonesia, who have been operating for over 17 years, Keke Busana's organizational culture reflects its founder's values, emphasizing loyalty and familial ties. However, the growing presence of Millennials and Generation Z who now dominate Indonesiaï¿½s workforce has introduced challenges related to generational diversity. These younger generations prioritize flexibility, rapid career advancement, and inclusive workplace cultures, often clashing with traditional family business norms. The company has also experienced high turnover rates among younger employees, primarily due to unmet expectations around flexibility, earnings, and career progression. This study investigates the relationships between Millennials and Generation Z characteristics, family business culture, and employee performance, with job satisfaction as a mediating factor. By understanding these dynamics, the research aims to provide actionable strategies to help family-owned businesses like Keke Busana enhance job satisfaction, foster collaboration, and improve employee performance.

Literature Review

Family Business Culture

Family business culture emphasizes values such as trust, loyalty, and long-term relationships within the company. According to Kotter and Heskett (1992) in (Denison et al., 2004), a culture refers to the shared values hold by people in a group and generally will remain even overtime even with the group members change. The study found how a strong organizational culture can positively influence the overall organization performance by providing employees with a strong sense of goals and expectations. Organizations that implement a familial work environment and focus on employeesï¿½ well-being increase employee productivity and performance as employees develop a sense of belonging and are willing to give their maximum ability for the organization (Athwal, 2017). These values align with (Herzberg et al., 2011), who state that family-oriented cultures promote motivator factors, driving job satisfaction and improving overall performance. A company that invested and focused on their employee development will lead to higher employeesï¿½ motivation. Leaders have to uphold family values in fostering strategic innovation while creating work environment where employees are motivated to thrive, have a sense of belonging to the company, and feel engaged in the businesses processes (Beckers et al., 2020). Hence, by embedding these characteristics, family businesses possess competitive advantage through its distinctive fundamental values that direct their daily activities, which lead to sustainability by fostering positive collaboration internally.

Millennials and Generation Z Characteristics

In Indonesia, both Millennials and generation Z account for a significant portion of the workforce. By exploring these characteristics, family business can better navigate potential challenges and align its strategies to leverage the strengths from having multigenerational workforce. Especially for family business that view individualsï¿½ engagement and cohesiveness within the business to be a crucial factor for businessï¿½ sustainability. Millennials and Generation Z bring unique characteristics to the organization, such as a preference for flexibility, technological integration, feedback, and career development opportunities. Aligning workplace practices with these traits can positively impact job satisfaction. (Seifert et al., 2023) emphasize that providing regular feedback, work-life balance, and technological advancements improves employee capacity as they feel fulfilled and appreciated. However, these characteristics alone do not independently influence performance, suggesting the importance of mediating factors like job satisfaction.

Job Satisfaction

Job satisfaction is one of the central concepts of organizational behavior that mediates the relationship between organizational culture, employeesï¿½ performance as well as individualsï¿½ distinct characteristics. It influences how people work and how they respond emotionally to their job, which will influence both individual and organizationï¿½s outcomes. Herzberg's Two-Factor Theory (1959) identifies motivator factorsï¿½such as recognition, career development, and work-life balanceï¿½as key drivers of satisfaction. (Twenge & Campbell, 2008) and (Brun & Dugas, 2008) further emphasize that creating a supportive work environment and providing regular feedback significantly enhance job satisfaction, which, in turn, improves employee performance.

For young generations such as Millennials and Generation Z, who value having adequate time for their personal life outside work, work-life balanced is considered to be one of critical components of their job satisfaction (Schroth, 2019). This element aligns with the hygiene needs, as lack of balance between work life and personal life will lead to burnout or stress feelings that can result in dissatisfaction. Previous studyï¿½ also found that work-life balance is positively in line with higher employee performance and productivity, as well as commitment to the organisation (Delecta, 2011). Moreover, receiving recognition and appreciation is a powerful factor that can increase employeeï¿½s motivation that leads to job satisfactions (Herzberg et al., 2011). Job satisfaction is also influenced both opportunities for career development and satisfaction with training and education that contribute to growth opportunities. Especially for family businesses, providing career opportunities, training, also skill development is essential in maintaining employeesï¿½ satisfaction, in which also aligns with higher level of engagement and employeesï¿½ performance (Garavan et al., 2001).

Employee Performance

Employee performance is influenced by organizational culture, employee engagement, and satisfaction. Employee performance and productivity are critical for a business's success, especially in family businesses that prioritize long-term sustainability over short-term profit (Szabï¿½, 2013). Goal achievement measures employees' ability to meet and exceed targets, which is essential for organizational success (Miller & Le Breton-Miller, 2005). This involves the energy, motivation, and dedication employees invest in their tasks, as well as ensuring alignment between employee skills and job requirements, which positively impacts performance (Sim, 2016). Employees with strong job knowledge can efficiently complete tasks, contributing to higher-quality work, reducing rework, and maintaining company standards, which is vital for competitive advantage (Bhat & Shah, 2013). Team collaboration also significantly impacts employee performance. Effective teamwork promotes creativity, innovation, and problem-solving (Denison et al., 2004). This is particularly crucial in family businesses, where cohesiveness and alignment with organizational goals improve performance and foster initiative (Sorenson, 2000). Empowering employees to take initiative drives continuous improvement and innovation, essential for long-term success (Athwal, 2017). Ultimately, strong collaboration and interpersonal ties create a positive work environment, enhancing productivity and operational efficiency (Miller & Le Breton-Miller, 2005).

Relationships Development

Millennials and Generation Z Characteristics to Job Satisfactoin and Employee Performance

Previous studies have found that there is a positive correlation between Millennials and Generation Z characteristics with job satisfaction that positively enhance the overall employee performance. Research by Suslova & Holopainen (2019) indicated that 90% of their respondents that consist of both Millennials and Generation Z agree that their performance in the work will increase when they feel satisfied with the work environment. This finding is supported by Waworuntu & Mandagi (2022) that found how both Millennials and Generation Z can undoubtedly leave an organisation when they feel unattached or unsatisfied with the organisation. Work-life balance become one of the most significant factors that influence these generationsï¿½ satisfaction towards their job. Their performance at work will increase when they can find a balance between their professional and personal life (Waworuntu & Mandagi, 2022), this is due to their concern about mental health issue that they take seriously, that mostly can happen when they are overloaded with work and cannot enjoy their free time outside work. Several factors have been found to significantly contribute to the mental health condition in the work place that if they are not managed properly, these can lead to burnout and high stress level among employees. These factors include their work-life balance, not getting enough recognition about their work, not feeling supported by their leaders, less flexibility with long working hours, and also about their task alignment that does not matched with their personal purpose (Delloite, 2024).

Family Business Culture to Job Satisfaction and Employee Performance

Family business culture has a significant impact to the job satisfaction and employee performance due to their unique cultural strengths that are distinct with the non-family businesses as highlighted in the study by (Denison et al., 2004). The study also found that strong culture can maintain high level performance for a long-term since it will give clear purpose of a company other than profit like most traditional businesses see as a goal. Particularly in family-owned business where the companyï¿½s culture is greatly influenced by the values hold by the founder that bring uniqueness which are inimitable and can the source of competitive advantage if nurtured properly. Family businessï¿½ unique cultural strengths such as shared values and strong sense of identity, commitment to their people, fostering innovation while holding to the traditional family values, contributing to employeeï¿½s engagement and motivation to work (Denison et al., 2004). Similarly, employees will enhance their performance and dedication in their work when their personal and business values are merged in the workplace since they will feel belonged to the company (Bhat & Shah, 2013). This alignment results in increased employeesï¿½ happiness, reduce absenteeism, employeesï¿½ willingness to put in their maximum efforts to achieve organization goals. Family business cultural values such as trust and supportive team members that leads to employees being happy and foster team collaborations and innovations in the workplace (Pedersen Gurholt, 2024). This cultural value aligns with the Herzbergï¿½s Two Factor theory where factors like growth opportunities, meaningful work, task alignment contribute to increase job satisfaction, which categorized as the intrinsic motivators, along with hygiene factors such as alignment of values and sustainability that prevent dissatisfaction to happen (Herzberg et al., 2011).

The Role of Job Satisfaction as the Mediation Variable

Employeeï¿½s job satisfaction plays important role in enhancing employee performance. This is because employees who feel happy and satisfied will be more motivated towards their job, as a result, the company would get great performance from them. Alternatively, when employees feel unmotivated and dissatisfied with their work and working environment, they will feel not encouraged to give their best to their work that negatively impact their performance in the company. Smith, Kendall and Hulin (2017) in (Miah, 2018) studied the term of work fulfilment which the extent to which individual is satisfied and delighted by her or his work. Significant research on the study found that factors like individualsï¿½ personal goals alignment with businessï¿½ goals, working conditions, relationship with co-workers and leaders, all contribute to the work fulfilment that influence individualï¿½s attituded towards their job. This fact is also supported by the findings from (Dekoulou & Trivellas, 2017) indicated how more than 40% of the organizations that are listed inside the main 100 of Fortune 500 organizations agree that there is positive correlation between employeeï¿½s work fulfilment with organisation financial performance. Furthermore, a more recent study by (Miah, 2018) indicates that employees positioned in higher level positions, regardless their age, more likely to have greater satisfaction through intrinsic motivator such as meaningful work, recognition and appreciation, growth opportunities. On the other hand, those employees in the lower level positions are more motivated by extrinsic factors such as working environment, supervisor relationship and remuneration. In summary, previous studies support the statement that job satisfaction positively influence employee performance since satisfied employees will demonstrate higher commitment, productivity and motivation that leads to overall organisational success.

Figure 1: Conceptual Framework

Methodology

This study utilizes a quantitative approach using the Partial Least Squares (PLS) along with Structural Equation Modeling (SEM) to investigate the relationship between the variables, namely, Millennials and Generation Z characteristics, family business culture, job satisfaction, and employee performance. The study targets all current employees in Keke Busana with the age ranging 18-35 years old, representing the Millennials and Generation Z employees. this research using SEM PLS analysis, a sample size at a minimum 100 people would be adequate since it has less than 5 latent variables, where each contains three or more indicators (Haryono, 2016). Further, a set of questionnaires is developed based on the indicators in each variable, using the 6-point Likert scale that will be distributed to Keke Busanaï¿½s employees in Millennials and Generation Z. SEM PLS will be used to test the validity of the data collected, to test the hypothesis, and evaluate the mediating effects of job satisfaction.

Table 1 Construct Variables and Indicators

Variable	Indicators	Code	Detail
Millennials and Generation Z Characteristics	Technology Preference	GC1	The extent to which employees value advanced technology in their daily activities. (Seifert et al., 2023; Dwidienawati & Gandasari, 2018)
	Skills suitability and feedback	GC2	The degree to which employees need to have their skills matched with their roles through continuous feedbacks (IDN Times, 2024; Seifert et al., 2023)
	Skills suitability and feedback	GC3	Employeesï¿½ motivation to improve performance through regular feedback (Twenge & Campbell, 2008)
	Flexible Environment	GC4	Employeesï¿½ preferences to work in a flexible working environment and arrangements (Schroth, 2019; Seifert et al., 2023)
	Flexible Environment	GC5	Employeesï¿½ alignment in values with the companyï¿½s towards flexibility (Deloitte, 2024; Delecta, 2011)
	Career and skill development	GC6	The desire of employees to look for opportunities for both career and skill development. (Garavan et al., 1999; IDN Times, 2024)
Family Business Culture	Family-Oriented Values	FC1	The emphasis on family values such as trust, loyalty, and long-term relationship within the company (Denison, Lief, & Ward, 2004; Gï¿½mez-Mejï¿½a et al., 2007)
	Leadership Culture	FC2	The preferences of particular leadership style that focus on supporting the work of employees (Beckers et al., 2020; Sorenson, 2000)
	Leadership Culture	FC3	The degree of fairness and support provided by supervisors (Herzberg et al., 1959; Sorenson, 2000)
	Innovation and Tradition	FC4	The balance between supporting innovations for the company while maintaining the traditional family cultures. (Denison, Lief, & Ward, 2004; Dewi, 2016)
	Innovation and Tradition	FC5	Employeesï¿½ sense of belongingness through the business cultural tradition (Bhat & Shah, 2013; Athwals, 2017)
	Commitment to Employees	FC6	The companyï¿½s dedication for employeesï¿½ professional growth and their well-being. (Youth Greenspace Action & Network Org, 2023; Herzberg et al., 1959)
Job Satisfaction	Work-Life Balance	JS1	Measures how well employees can balance their personal and professional life. (Schroth, 2019; Delecta, 2011)
	Recognition and Apreciation	JS2	The degree to which workers are getting recognized for their contribution. (Herzberg et al., 1959; Brun & Dugas, 2008)
	Growth Opportunities	JS3	The availability and access to opportunities for professional development such as trainings and education. (Garavan et al., 1999; Deloitte, 2024)
	Growth Opportunities	JS4	The degree of satisfaction employee feels about the companyï¿½s facilities for growth opportunities. (Herzberg et al., 1959; Deloitte, 2024)
	Task Alignment	JS5	The alignment between the employeesï¿½ roles to their abilities and interests. (Herzberg et al., 1959; Miah, 2018)
	Task Alignment	JS6	The alignment between employeesï¿½ workload with their financial compensation (Sorenson, 2000; Miah, 2018)
Employee Performance	Goal Achievement	EP1	The capability to reach or exceed the job-related targets. (Miller & Le Breton-Miller, 2005; Sim, 2016)
	Goal Achievement	EP2	The ability to finish tasks and targets on time. (Viswesvaran in Sim, 2016)
	Quality of Work	EP3	The consistency to product good quality work that meets the companyï¿½s standards (Miller & Le Breton-Miller, 2005)
	Team Collaboration	EP4	The ability to work effectively in team in achieving the companyï¿½s common goals. (Denison, Lief, & Ward, 2004; Sorenson, 2000)
	Initiative	EP5	Improving the business processes by being proactive in identifying and solving challenges in workplace. (Herzberg et al., 1959; Denison, Lief, & Ward, 2004)
	Initiative	EP6	The ability to work independently (Herzberg et al., 1959; Sorenson, 2000)

Result

Measurement Model or Outer Model

The measurement model investigates the relationships between the latent variables (constructs) with the determined indicators. This model has a purpose to ensure that all variables such as Millennials and Generation Z Characteristics, Family Business Culture, Job Satisfaction and Employee Performance are measured accurately. The measures include examining its indicator reliability using Outer Loading Analysis as well as construct reliability using Composite Reliability (CR) and Cronbachï¿½s Alpha. Furthermore, validity tests will include convergent validity tests involving the Average Variance Extracted (AVE), and using the Fornell-Larcker Criterion to examine its discriminant validity.

The result shows that the outer loading value for each indicator is higher than >0,7 threshold, which confirms that each indicator is reliable and strong represents each variable. To ensure the internal consistency, then composite reliability tests were conducted using Cronbach's Alpha and Composite Reliability. The result shows excellent reliability for all variables with Employee Performance (0.954), Family Business Culture (0.952), Millennials and Generation Z Characteristics (0.949), and Job Satisfaction (0.953). Further, the result also confirms that the indicators within each construct are sufficiently connected, shown from the results of the AVE values for all variables are all above 0.5, that is, Employee Performance at 0.774, Family Business Culture at 0.766, Millennials and Generation Z Characteristics at 0.756, and Job Satisfaction at 0.772. Discriminant validity would be the final test in examining the validity through Fornell-Larcker criterion, indicating each variable is highly more correlated with its own indicators than the ones for the other construct with the square root of AVE for each construct variable is greater than its relationship with other constructs as shown in Table 1.2. Overall the measurement model analysis verifies the validity and reliability for all indicators for each construct.

Table 2 Fornell-Larcker criterion

	Employee Performance	Family business Culture	Millennials and Generation Z Characteristics	Job Satisfaction
Employee Performance	0,6111
Family business Culture	0,3681	0,6076
Millennials and Generation Z Characteristics	0,3479	0,3229	0,6042
Job Satisfaction	0,3826	0,3535	0,3507	0,6097

Structural Model Analysis

The structural model analysis examines the relationship between the latent variables and also tests the relationships that have been determined in the conceptual frameworks. To test the relationship significance, the procedure of bootstrapping will be performed examining the path coefficients with their T-value and P-value. there will be a bootstrap setting of 5000 subsamples with a two-tail test, and a 95% significance level. In this research, the T-value should be greater than 1,96 to be considered having a good significance. Additionally, P value should be less than 0,05 to be considered havng high significance and thus, the variables are said to have strong significance with each other

Table 3 Path Coefficient

	Original sample (O)	Sample mean (M)	Standard deviation (STDEV)	T statistics (\|O/STDEV\|)	P values
Family business Culture -> Employee Performance	0,190	0,190	0,088	2.166	0.030
Family business Culture -> Job Satisfaction	0,243	0,248	0,093	2.609	0.009
Millennials and Generation Z Characteristics -> Employee Performance	0,155	0,149	0,085	1.814	0.070
Millennials and Generation Z Characteristics -> Job Satisfaction	0,238	0,238	0,096	2.478	0.013
Job Satisfaction -> Employee Performance	0,207	0,210	0,088	2.373	0.018

The result shows most variables indicate strong significance, aligning with the literature review. Family Business Culture significantly impacts the Employee Performance (path coefficient = 0,0190, T = 2.166, P = 0.030), supported by (Athwal, 2017), which shows how organisations that implement familial work environment and also focus on employeesï¿½ wellbeing with increase employee productivity and performance since they will develop a sense of belongness and willing give their maximum ability for the organisation. Similarly, Family Business Culture significantly affects Job Satisfaction (T = 2.609, P = 0.009), consistent with (Herzberg et al., 2011), where employee well-being promotes satisfaction and performance.

Millennials and Generation Z Characteristics significantly impact Job Satisfaction (T = 2.478, P = 0.013), emphasizing the need to align organizational practices with their preferences, such as feedback and work-life balance. However, their direct impact on Employee Performance is not significant (T = 1.814, P = 0.070), suggesting their potential is better realized through enhanced Job Satisfaction. Lastly, Job Satisfaction significantly influences Employee Performance (T = 2.373, P = 0.018), affirming previous studies (Herzberg et al., 1959; Brun & Dugas, 2008) that a supportive environment, career growth, and recognition boost motivation and performance.

Discussion

The Impact of Millennials and Generation Z Characteristics to Job Satisfactoin and Employee Performance

The overall results from this research offer important insights particularly for family-owned business-like Keke Busana, revealing strong relationship between Millennials and Generation Z Characteristics, Family Business Culture, Job Satisfaction, and Employee Performance. Millennials and Generation Z both shared similar values that need to be seriously considered since they are currently the individuals who dominate the workplace. The distinct values if managed properly, can increase both job satisfaction and employee performance. On the top list of these values, there are preferences for work-life balance and growth opportunities, followed by technology advancement, and a desire for positive feedbacks, as supported by previous studies (Twenge & Campbell, 2008) and (Schroth, 2019) indicating that addressing these preferences is important to increase employee engagement and performance. In order to meet these needs, family businesses can invest in technology implementation in the workplace, piloting flexible work arrangement, creating system to provide regular feedbacks for employees.

The Impact of Family Business Culture to Job Satisfaction and Employee Performance

Given its focus on trust, sustainability, loyalty and long-term commitment, family-business culture gives important influence to job satisfaction and employee performance. The result of this research supports the previous findings by (Denison et al., 2004) and (Bhat & Shah, 2013), illustrating how combining the traditional values of family businesses with modern workplace practice will strengthens employee engagement. Leadership styles favored in family business that emphasize the value of open communication, supportive supervisors, and fairness, lead to employees having a sense of belonging to the company and will foster collaboration (Sorenson, 2000). Family business can provide leadership training that emphasizes on interpersonal skills and prioritize diversity in order to maintain the traditional values of family business while adapting to the dynamic expectations of young employees.

The Role of Job Satisfaction as the Mediation Variable

Finally, this study confirms the mediating role of Job Satisfaction to the employee performance outcomes such as goal achievement, team collaboration, and great quality work. Employee who belief that there is an alignment between their personal values to companyï¿½s culture will exhibit stronger motivation and higher level of engagement, as supported in studies (Miller & Le Breton-Miller, 2005) and (Denison et al., 2004). Therefore, to take benefit from this, strategic movements should be implemented focusing on fulfilling the preferences of both Millennials and Generation Z while still maintaining company profitability. The strategies may include, creating regular training and mentorship program for employees, implementing regular team-building activities, improve open communication, the provide trainings for skills development.

Business Solution - Implementation Plan

Based on the results of data analysis and discussion, several strategies are recommended for family business particularly Keke Busana. Below tables outline the implementation plans that are divided into two plans based on the timeline categories. The short-term plan focuses on high impact and immediate action plan to address the young employeesï¿½ needs. On the other hand, the moderate to long-term implementation plan offers sustainable changes including digital transformation, structure training programs, expansion of communication platforms, to ensure long-tern success of the company.

Table 3 Short term Implementation Plan (6 months ï¿½ 1 year)

No	Business Solution	Action Plan	Timeline
1	Create regular feedback mechanism to monitor performance and enhance communication	Schedule a monthly/weekly feedback session between employees and supervisors	Start in January 2025
1		Provide training to supervisors and leaders how to give constructive feedback	Start in January 2025
2	Introduce a flexible working arrangement to address the work life balance needs	Determine departments that are suitable for a flexible working arrangement (e.g. Hybrid work, flexible working hours)	Start in January 2025
		Design a pilot program for the selected departments. This can include hybrid work, flexible working hours. Depends on the needs of each departments	Start in February 2025
		Monitor and collect feedback about the pilot program in terms of its effectiveness and efficiency.	Start in February 2025 (weekly report for monitoring)
3	Create short-term employee recognition programmes to reward employee contributions	Develop a monthly recognition programmes (e.g. monthly award,ï¿½ shoutout) this can be for all employees or within division	Start in January 2025
		Design a pilot program for employee recognition, for example "Employee of The Month" program	Start in January 2025
		Create an internal system and platform for employees to give peer-to-peer recognition	Start in March 2025

Table 4 Moderate to Long-term Implementation Plan

No	Business Solution	Action Plan	Timeline
1	Provide structured growth opportunities through trainings to increase motivation and adding new knowledge to employees	Design a program where employees can develop their specified skills within division. This can be once per month, or in accordance to the needs of each division	Start in May 2025 (after the peak season of Idul Fitri)
1		Collaborate with external training providers to give regular training to employees	Start in May 2025 (after the peak season of Idul Fitri)
2	Foster team cohesiveness and collaboration to strengthens employee engagement	Organise weekly or monthly informal activities events, can be sport day, or day-out	Start in May 2025
		Create an annual team building event can be in two-three days event	Start in May 2025
		Conduct a division specific workshops or activities can be quarterly, or per six month	Start in May 2025
3	Create internal communication platform to ensure employees are updated and to increase employee engagement	Develop a social media account for internal purposes, so that employees will be updated and feeling involved	Start in May 2025
3		Create a division-specific group to share information and knowledge in a more niche group	Start in May 2025
4	Integrate digital transformation in business activities to increase effectiveness and efficiency	Implement performance tracking tools in digital platforms to monitor employees' performance and provide regular performance review	Start in January 2026
		Integrate digitalisation operational processes, including inventory management, production, and planning	Start in January 2026
		Conduct employees' trainings to operate the new systems	Start in January 2026

Conclusion

This study provides an analysis about relationship between Millennials and Generation Z characteristics, family business culture, job satisfaction, and employee performance, using Keke Busana as a case study. The result shows that Millennials and Generation Z who are now dominating the market, bring unique and distinct values to the company that have a lot of potential, such as technology preferences, work-life balance that become top priority when choosing workplace, and also growth opportunities. However, these traits do not independently give positive influence to employee performance, the significance increases when mediated with Job Satisfaction. This highlights the importance of creating entangling and positive work environment to tailored the expectations of these young generations. Family business values, that characterised by trust, commitment to employees, loyalty, is proven to have significance influence to job satisfaction and employee performance. While the study highlights the importance of organisation to focus on increasing job satisfaction to improve the overall performance of employees such as focusing on motivation factors such as growth opportunities, team cohesiveness, work-life balance, and recognition. Overall, the study concludes that addressing generational diversity, strengthens the family values into the organisation, focusing on job satisfaction, will help family-owned businesses like Keke Busana to achieve long-term success

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