Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement

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Technological developments are things that must be followed by companies to achieve a competitive advantage to improve performance. To achieve and improve performance, companies need active employee engagement by encouraging motivation and fulfilling their job satisfaction. This study aims to analyze the effect of motivation and job satisfaction on performance with employee engagement as a mediating variable. The research sample is Information Technology (IT) companies located in the cities of Jakarta and Bandung, Indonesia. Research respondents are system developers who handle system development activities for a project or part of an ongoing project. By using the convenience sampling technique 103 responses were obtained from IT developers. The research model analysis method uses Partial Least Square (PLS) with SMART PLS Ver 3.0 software. Empirical findings prove that motivation has a positive effect on the performance of IT employees, while job satisfaction is independent. Employee engagement does not directly affect employee performance, but the effect of mediation through motivation and job satisfaction can have a significant effect on employee performance. The research findings have managerial implications, in increasing high employee involvement, motivation needs to be encouraged to be more active and innovative, and facilitate the achievement of the desired results.

Acknowledgment
This study was made possible because of the full support of the Region III Education Service Institute (LL-DIKTI III), the Ministry of Education and Culture of the Republic of Indonesia, and the Research Center at Mercu Buana University, Jakarta.

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    • Table 1. Research indicators
    • Table 2. Factor loading and reliability
    • Table 3. Discriminant validity (Fornell-Lacker criterium)
    • Table 4. Composite reliability
    • Table 5. Cronbach’s alpha
    • Table 6. R-square
    • Table 7. Fit summary
    • Table 8. Summary of the structural model
    • Conceptualization
      Setyo Riyanto
    • Funding acquisition
      Setyo Riyanto
    • Project administration
      Setyo Riyanto, Endri Endri
    • Resources
      Setyo Riyanto, Endri Endri
    • Supervision
      Setyo Riyanto
    • Formal Analysis
      Endri Endri, Novita Herlisha
    • Validation
      Endri Endri
    • Writing – review & editing
      Endri Endri
    • Data curation
      Novita Herlisha
    • Methodology
      Novita Herlisha
    • Investigation
      Novita Herlisha
    • Software
      Novita Herlisha
    • Visualization
      Novita Herlisha
    • Writing – original draft
      Novita Herlisha