Jefta Harlianto

Despite its growth, Indonesia’s startup industry struggles with high failure rates; this industry relies on employee productivity and promoting new work methods that reshape modern workplaces. The study aims to examine the impact of new ways of working on employee productivity and work engagement in Indonesian unicorn startups post-pandemic while also observing the current situation using importance-performance analysis. The data analysis uses structural equation modeling (SEM) with partial least squares (PLS) and Smart-PLS software. This study analyzes survey data from 56 leaders of Indonesian unicorn startups. It delves into the complex relationships between these variables based on the leaders’ perspectives. According to the findings, new ways of working impact employee productivity (β = 0.521; p-value < 0.05), new ways of working impact work engagement (β = 0.856; p-value < 0.05), work engagement impact employee productivity (β = 0.379; p-value < 0.05), and new ways of working impact employee productivity through work engagement (β = 0.325; p-value < 0.05). The findings indicate that new ways of working significantly affect work engagement and productivity. It also identifies work engagement as a key driver of employee productivity. Interestingly, the effect of new ways of working on employee performance is also mediated by work engagement, highlighting the relationship between these factors.

Even though Indonesia’s start-up scene is experiencing rapid growth, the industry is grappling with considerable hurdles, such as a high rate of business closures, strong dependence on employee efficiency, and heavy reliance on technology. This paper examines the correlation between leadership styles, job challenges, job engagement, and job insecurity in Indonesian start-ups, which face unique challenges affecting employee job security. Unlike most research on how job insecurity impacts job engagement, this study explores whether higher job engagement impacts job insecurity, providing practical insights for leaders. The study was structured using a quantitative approach known as structural equation modeling-partial least squares (SEM-PLS), which analyzed 198 responses from Indonesian start-up employees. This study found that leadership styles significantly affect job insecurity (β = 1.337, p-value < 0.05), however, leadership styles do not substantially affect job engagement (β = 0,435, p-value > 0.05). Another finding states that job challenges do not significantly affect job engagement (β = 0.491, p-value > 0.05) and job insecurity (β = –0.037, p-value > 0.05). Job engagement significantly influences job insecurity (β = –0.428, p-value < 0.05). This study specifically targets employees in Indonesian start-ups to uncover mechanisms and offer practical recommendations for enhancing job security and motivation. The findings underscore the significant impact of leadership style on job insecurity, emphasizing the importance of engaging and motivating employees through personalized leadership style approaches to enhance job stability and overall workforce effectiveness in Indonesian start-ups.

Type of the article: Research Article

Abstract
The wave of layoffs in Indonesia’s startups has increased employees’ concerns about job insecurity, raising the need for a deeper understanding of its determinants. This study examines the associations between work stress, self-efficacy, and job insecurity in Indonesia’s startup ecosystem. Specifically, it investigates direct and indirect effects of work stress on job insecurity through self-efficacy. Data were collected from 262 digital startup employees in Jakarta using an online survey at the beginning of 2024 and analyzed using covariance-based structural equation modeling with LISREL software. The findings suggest that work stress does not directly influence job insecurity (T-value of 0.79 < 1.967), indicating that startup employees may perceive stress as a regular aspect of their dynamic and high-pressure work environment. However, work stress significantly and positively impacts self-efficacy (T-value of 11.32> 1.967), implying that stress can enhance employees’ confidence in their abilities when managed effectively. Self-efficacy has a significant and positive effect on job insecurity (T-value of 9.98 > 1.967), highlighting its pivotal role in shaping perceptions of job stability. Furthermore, work stress indirectly influences job insecurity through self-efficacy (Indirect effect 0.7392 > direct effect 0.045), emphasizing the mediating role of self-belief in mitigating the adverse effects of workplace stress. The findings emphasize the importance of fostering self-efficacy through supportive management, training programs, and clear communication to lessen job insecurity and promote resilience. These insights provide practical implications for enhancing employee well-being and organizational sustainability in the rapidly evolving startup environment.