Abstract

This chapter explores how workplace flexibility affects productivity and burnout in Costa Rica's financial and service sectors, with employee engagement as a mediator and generational cohort as a moderator. Drawing on the Job Demands–Resources (JD-R), Conservation of Resources (COR), and Affective Events Theory (AET), it applies a moderated mediation framework using a survey of 781 employees. Structural Equation Modeling (SEM) and PROCESS macro (Model 7) tested direct, indirect, and conditional effects. Results show flexibility enhances productivity and reduces burnout directly and indirectly via engagement, with the strongest burnout reduction among Gen Z. Confirmatory Factor Analysis (CFA) validated constructs, and fit indices confirmed model robustness. The study advances theory by integrating JD-R, COR, and AET while contributing empirical evidence from underexplored Latin American contexts. Findings highlight that tailoring flexibility policies to generational values can optimize engagement, well-being, and inclusive HR strategies in the evolving world of work.