Ethical Leadership and Gen Z Engagement in the Digital Era: A Systematic Review
TL;DR
This study reviews how digital technology affects the work engagement of Generation Z employees, focusing on four interconnected variables: ethical leadership, psychological safety, Algorithm-Based Management (ABM), and Gen Z work engagement, synthesizing findings across empirical, theoretical, and mixed-methods designs.
Abstract
The rapid adoption of digital technologies is reshaping how Gen Z employees experience and engage with work. This study reviews how digital technology affects the work engagement of Generation Z employees, focusing on four interconnected variables: ethical leadership, psychological safety, Algorithm-Based Management (ABM), and Gen Z work engagement. Analyzing 30 peer-reviewed articles published between 2012 and 2025, the review synthesizes findings across empirical, theoretical, and mixed-methods designs. Gen Z employees demonstrate higher engagement when they perceive their leaders as fair and transparent, feel psychologically safe, and work within supportive digital environments. Ethical leadership consistently enhances commitment, job satisfaction, and positive workplace behavior, with trust and psychological safety serving as key mediating mechanisms. However, ABM, encompassing automated performance monitoring, algorithmic task allocation, and data-driven discipline, poses an underexplored challenge to Gen Z engagement by disrupting the relational pathways through which ethical leadership operates. Evidence on ABM remains sparse and skewed toward platform economy workers, leaving Gen Z knowledge workers understudied. Gaps in cross-cultural and longitudinal research also persist. These findings offer practical guidance for managers and HR professionals designing engagement strategies for digital work environments.