Generation Z Thrives, Generation X Lags: Evidence on Job Satisfaction in Croatia’s Financial Sector

Interdisciplinary Description of Complex Systems 23(5), 410-426, 2025 GENERATION Z THRIVES, GENERATION X LAGS: EVIDENCE ON JOB SATISFACTION IN CROATIA’S FINANCIAL SECTOR Natalia Tutek1, *, Mirko Palić2 and Sara Soldo3 1EFFECTUS 1Zagreb, Croatia 2University 2Zagreb, 3Libertas 3Zagreb, of Zagreb, Faculty of Business and Economics Croatia University Croatia DOI: 10.7906/indecs.23.5.1 Regular article Received: 23 May 2025. Accepted: 2 July 2025. ABSTRACT Numerous recent studies have demonstrated the profound impact of employee job satisfaction on job performance, and consequently, on overall corporate success. Main purpose of this research was to investigate the determinants of job satisfaction within the financial sector in Croatia, focusing on how various socio-demographic and institutional factors influence employee satisfaction. A comprehensive survey of 3 141 employees across different financial institutions, including banks, insurance companies, pension funds, and leasing companies, was conducted. The study utilized factor analysis, t-tests, and ANOVA to examine the effects of gender, age, education level, salary, duration of employment, type of financial institution, department, employment level, company size, and ownership structure on job satisfaction. The findings reveal that gender, education level, salary, duration of employment, type of financial institution, department, employment level, and ownership structure significantly influence job satisfaction. Notably, younger employees, particularly those from Gen Z, report higher job satisfaction than their older counterparts, with Gen X employees being the least satisfied. Additionally, employees in higher managerial positions and those with advanced educational qualifications, such as postgraduate degrees, tend to exhibit higher levels of satisfaction. Conversely, those in lower-level positions, administrative roles, and with longer tenure in the financial sector report lower job satisfaction. KEY WORDS job satisfaction, internal marketing, socio-demographic factors, financial institutions, Croatia CLASSIFICATION JEL: G2, M31 *Corresponding author, : ; -; *EFFECTUS, J.F. Kennedy Square 2, HR – 10 000 Zagreb, Croatia Generation Z thrives, generation X lags: evidence on job satisfaction in Croatia’s ... INTRODUCTION In a rapidly changing world, a multitude of complex social, economic, and political shifts impact corporate employees, who must adapt by acquiring new skills, approaches, and knowledge across a broad spectrum. Digitalization and the rise of social media usage have changed the way people learn, communicate, and make buying decisions [1]. Social networks irreversibly change their stakeholders, making them more informed than ever before, and changing the way, speed and ease of information [2]. The demands of the market and the workplace environment constantly challenge employees. To sustain their roles and thrive, they must become part of a learning society. However, considering the diverse backgrounds, cultures, and values of individuals, achieving job satisfaction is a complex endeavour. Each employee’s unique preferences and values significantly influence their satisfaction levels, making it difficult to create a one-size-fits-all approach to job satisfaction. Recent studies confirm that these complexities are particularly visible in service industries like banking, where environmental, psychological, and organizational factors all contribute to perceived satisfaction levels [3]. In particular, the physical work environment, ergonomic design, and safety culture have been found to significantly influence job satisfaction among financial service employees [3]. Job satisfaction has been extensively studied and defined in various ways over the years. One of the most widely recognized definitions describes job satisfaction as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences” [4]. This definition highlights the emotional and evaluative nature of job satisfaction, which encompasses not only the feelings employees have about their work but also their perceptions of how well their job meets their needs and expectations. Further definition of the defining job satisfaction is “the way people feel about their work and how they perceive their work” [5]. This definition underscores the subjective nature of job satisfaction, which can be measured in degrees and evaluated through various methods and instruments. The significance of job satisfaction goes beyond personal well-being; it plays a critical role in organizational performance. Job satisfaction is strongly correlated with job performance, implying that more satisfied employees tend to be more productive, innovative, and committed to their organizations [6]. Also, job satisfaction reflects how employees feel about their treatment by the employer [7], arguing that that organizations should prioritize job satisfaction, not only because it is the right thing to do from a humanistic standpoint but also because it can lead to better organizational outcomes. This is particularly important in banking, where employees’ motivation and satisfaction are significantly influenced by training, compensation, and internal communication practices [8]. Recent research highlights those intrinsic motivators – such as autonomy, purpose, and professional growth – also strongly shape performance outcomes [9]. When employees are satisfied, they are more likely to put in the effort necessary to help the organization achieve its goals. The two-factor theory of job satisfaction categorizes job-related factors into “hygiene factors” and “motivators” [10]. Hygiene factors, such as salary, job security, and working conditions, do not necessarily lead to job satisfaction but can cause dissatisfaction if they are inadequate. Motivators, such as achievement, recognition, and responsibility, are the factors that truly drive job satisfaction. New research also links these motivational drivers with broader organizational goals, including environmental performance and corporate sustainability, showing that motivated bank employees tend to exhibit more green behaviours. Additionally, transformational leadership has been shown to significantly impact employee motivation and satisfaction by fostering a culture of recognition, trust, and shared vision [11]. This theory has influenced many organizations in designing their human resource policies to focus on both maintaining good hygiene factors and enhancing motivators to foster job satisfaction. 411 N. Tutek, M. Palić and S. Soldo The study of job satisfaction and its impact on organizational performance is a relatively recent development. Significant interest in employee management and job satisfaction only began in the 19th century [12]. Early pioneers such as Robert Owen and Charles Babbage laid the groundwork for modern management theories by recognizing the importance of hum (...truncated)