The Impact of Corporate Culture and Transformational Leadership on Employee Engagement: A Case Study at YKP Bank BJB

Abstract

Employee engagement is an important factor in sustaining organizational effectiveness, particularly in nonprofit organizations where employees are expected to internalize organizational values and social missions. This study aimed to examine the effects of corporate culture and transformational leadership on employee engagement at YKP Bank BJB. A quantitative research design was employed using a census sampling technique involving all 24 employees as respondents. Data were collected through questionnaires using a five-point Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4. The results showed that corporate culture had a positive and significant effect on employee engagement, with a t-statistic of 5.140 and a p-value of 0.000. Transformational leadership also had a positive and significant effect, with a t-statistic of 3.186 and a p-value of 0.001. Furthermore, corporate culture and transformational leadership jointly explained 97.8% of the variance in employee engagement, as indicated by an R² value of 0.978. These findings indicated that strengthening service excellence, integrity, professionalism, inspirational motivation, intellectual stimulation, and individualized consideration could enhance employee engagement. The study concluded that corporate culture and transformational leadership were key organizational factors in improving employee engagement at YKP Bank BJB.