ABSTRACTThe dominance of Generation Z and late Millennials in Indonesia's workforce presents new challenges in enhancing work engagement. This study examines the role of Psychological Capital, Individual Development, and Job Adaptability in improving work engagement among young Indonesian employees. Using a cross-sectional design with 200 respondents aged 20-34 years, data were analyzed using PLS-SEM. Results show that Psychological Capital (β=0.545, p<0.01) and Individual Development (β=0.347, p<0.01) significantly influence Job Adaptability (R²=69.9%). For Work Engagement (R²=70.2%), Individual Development is the strongest predictor (β=0.665, p<0.01), followed by Psychological Capital (β=0.306, p<0.01). Key findings indicate that Job Adaptability does not significantly affect Work Engagement (β=-0.099, p=0.546) and does not mediate either relationship. This suggests that inherently adaptive Generation Z requires clarity and development opportunities that directly contribute to engagement rather than adaptive capabilities. This study identifies boundary conditions of Career Construction Theory and provides practical implications that organizations need to prioritize Individual Development programs with clear career pathways as the primary strategy for enhancing young employees' engagement. Keywords: Work Engagement, Psychological Capital, Individual Development, Job Adaptability, Young Employees, Indonesia