HERO at Work: Investigating the Effects of PsyCap on Gen Z Job Performance

Abstract

This study contends that Psychological Capital (PsyCap), a construct comprising hope, self-efficacy, resilience, and optimism, is a decisive factor in enhancing the job performance of Generation Z (Gen Z) employees in Malaysia’s banking sector. By highlighting PsyCap as a key positive psychological resource that influences workplace attitudes and outcomes, the study underscores the importance of understanding which PsyCap dimensions drive performance among Gen Z, a group entering dynamic, high-pressure banking roles. Notably, while Gen Z is often linked with workplace stress and fluctuating engagement, specific evidence about the PsyCap dimensions most relevant to their job performance remains limited, particularly in Malaysia. To address this gap, the study used the Psychological Capital Questionnaire (PCQ-24) to examine which PsyCap dimensions best predict Gen Z job performance in Malaysian banking. Survey data from 167 Gen Z bankers were analysed using SmartPLS 4.0, a structural equation modelling (SEM) approach. The results reveal that hope and self-efficacy are significant predictors of job performance, while resilience and optimism are not. This pinpointed hope and self-efficacy, not resilience or optimism, as the primary psychological capital (PsyCap) drivers of Gen Z performance in this context. Theoretically, this study advances PsyCap research by demonstrating that not all PsyCap dimensions equally impact Gen Z job performance; specifically, hope and self-efficacy are found to be the most important. Practically, these results direct banking sector leaders to target interventions that build hope and self-efficacy in Gen Z employees. While contributing valuable knowledge about which PsyCap components matter most to Gen Z performance, this study is limited by its cross-sectional design and focus on the banking sector. Future research should employ longitudinal designs and cover other sectors to confirm whether hope and self-efficacy remain performance drivers across settings and over time. Such efforts will solidify understanding of how PsyCap can best enhance Gen Z workforce outcomes globally.