The aim is to examine how employee engagement influences performance, considering the roles of technology and work-life balance. Furthermore, this research also evaluates job engagement as a mediating variable between digital engagement and work-life balance on job performance. This study utilizes quantitative methods, gathering data through both online and in-person questionnaire surveys. The data was analyzed using partial least squares structural equation modeling (PLS SEM) and Smart-PLS software. The participants are Generation Z hotel employees in Jakarta, such as contract or permanent staff, daily workers, and part-timers, who are influenced by technology, referred to as digital engagement. A total of 240 respondents successfully completed the survey. The results show that digital engagement has an influence on job performance, work-life balance has no significant influence on job performance, and digital engagement, work-life balance, mediated by job engagement, has an influence on job performance. This research presents a novel conceptual framework for analyzing hotel performance. It also provides valuable insights for hotel management to develop strategies that enhance Generation Z employees’ performance by improving digital engagement and work-life balance while simultaneously supporting the hotel’s sustainability. For further research can examine variables that were not included in this study, such as digital addiction, job stress, management support, job environment, and motivation, with a broader reach, local hotels, or even internationally.