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This article seeks to explore the key motivational factors driving Generation Z (Gen Z), within the context of the significant influence of the digital paradigm, employing the Self-Determination Theory (SDT) as a content motivational framework.

Utilizing an abductive methodology, the study combines deductive insights from a systematic literature review on Gen Z’s motivational predictors with inductive findings from a workshop involving six medium and large - scale global manufacturing companies. The synthesis of these results contributes to the creation of a matrix that highlights the relationship between motivational predictors and the psychological needs stemming from intrinsic motivation.

This paper suggests an extension of SDT tailored for Gen Z, identifying six motivational factors—autonomy, competence, relatedness, purpose, flow state, and achievement.

This research emphasizes the need for a modern leadership approach capable of effectively overseeing remote teams, fostering a balanced integration of personal and professional aspects, and nurturing individual purpose. This approach goes beyond fulfilling the basic needs of Maslow’s pyramid to focus on elevating the significance of work, training, and employee engagement to satisfy higher levels of self-actualization and transcendence.

The study delves into the motivations of Gen Z, a demographics that has received limited attention in the existing literature. The integration of the six factors with SDT reflects a synthesis tailored to the distinctive characteristics of Gen Z and aligns with the principles of the PERMA model within positive psychology.

This study presents a systematic review of “employee happiness” research from 1991–2023. In this way, this study aims to critically appraise the existing literature, and synthesize themes, thereby, paving a clearer understanding of the construct, along with providing the future research agenda.

By adopting a systematic approach, this study followed scientific procedures and rationales for systematic literature reviews for article selection. A total of 57 articles were finally chosen after a careful examination from 110 selected journals.

The current study identified three major themes after evaluating the selected literature on Employee happiness: (1) work, family and personal blend, (2) organizational support, and (3) Ebullience sentiment. Amidst an ambiguous usage of several related constructs in employee happiness research, the review provided a clear definition of “employee happiness” along with proposing crucial research directions.

There is a lack of systematic reviews on employee happiness in the existing literature. Thus, by far, this effort is one of the earliest endeavors that researchers undertook toward understanding employee happiness.