The Relationship Between Employee Engagement and Goal Orientation Towards Competence and Employee Performance

Abstract

This study examines the relationship between employee engagement and goal orientation towards competence and the relationship between competence and employee performance in financial institutions. Questionnaires were given to several financial institutions in Aceh, North Sumatra, and Riau. Selection of financial institutions as a place for distributing questionnaires, based on the similarity of their business products. There are similarities such as mortgage marketing, multipurpose, and investment. These three regions are the most central provinces and have high levels of trade in western Indonesia. The sampling technique was carried out purposively based on specific criteria for the respondents. Partial Least Square (PLS) carried out the data analysis technique. The findings are Employee Involvement (EI) has a significant effect on Employee Performance (EP) with a path coefficient of 0.396 and a value of t = 3.765 (significance 0.000 less than 0.05). Employee Engagement (EE) will encourage an increase in Employee Performance (EP). The first hypothesis is accepted. Goal Orientation (GO) has no significant effect on Employee Performance (EP) with path coefficient-0.022 and t value = 0.460 (significance 0.645 greater than 0.05). Goal Orientation (GO) does not encourage an increase in Employee Performance (EP) The second hypothesis is rejected. Employee Involvement (EI) has a significant effect on Competence (COM) with a path coefficient of 0.920 and a value of t = 52.790 (significance 0.000 less than 0.05). Employee Involvement (EI) encourages an increase in Competence (COM). The third hypothesis is accepted. Goal Orientation (GO) has no significant effect on Competence (COM) with path coefficient-0.045 and t value = 1.316 (significance 0.189 is greater than 0.05). Goal Orientation (GO) does not encourage increased Competence (COM). The fourth hypothesis is rejected. Competence (COM) has a significant effect on Employee Performance (EP) with a path coefficient of 0.485 and a value of t = 4.646 (significance 0.000 less than 0.05). Competence (COM) will encourage Employee Performance (EP). The fifth hypothesis is accepted. The next step is to test the hypothesis of the indirect impact of the mediating variable Competence (COM). First, the predictor variable Employee Engagement (EE) has a significant effect on Employee Performance (EP) through Competence (COM) with a path coefficient of 0.446 and a value of t = 4,607 (significance 0.000 less than 0.05). Employee Engagement (EE) drives Employee Performance (EP) through Competence (COM). Hypothesis six is accepted. Second, the predictor variable Goal Orientation (GO) has no significant effect on Employee Performance (EP) through Competence (COM) with path coefficient-0.022 and t value = 1.252 (significance 0.211 greater than 0.05). Goal Orientation (GO) encourages Employee Performance (EP) through Competence (COM). Hypothesis seven is rejected. Furthermore, this study provides recommendations on practices and policies for producing employee productive work behavior in improving organizational performance. Another unique aspect of this research is that employees need to think and act out of the box to increase their competencies to become superior employees. As a result, employees still get high ratings from the leadership.