Work Engagement as a Strategic Mechanism for Employee Performance: Evidence from PTPN IV Regional-II, North Sumatera, Indonesia

Abstract

Organizational transformation in the plantation sector demands improved employee performance through strengthening professional competence, organizational culture, and work engagement. This study aims to analyze the influence of Professional Competence and Organizational Culture on Employee Performance and examine the role of Work Engagement as a mediating variable at PT Perkebunan Nusantara IV Regional II North Sumatera. The study used a quantitative approach with an explanatory research design. Data were collected through a five-point Likert scale questionnaire and involved 126 respondents selected using proportionate stratified random sampling. Data analysis was performed using IBM SPSS Statistics 26 and Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results showed that Professional Competence had a positive effect on Employee Performance (β = 0.304; p < 0.000) and Work Engagement (β = 0.374; p = 0.001). Organizational Culture also has a positive effect on Employee Performance (β = 0.226; p = 0.016) and Work Engagement (β = 0.411; p = 0.001). Furthermore, Work Engagement has a positive effect on Employee Performance (β = 0.388; p < 0.000) and mediates the influence of Professional Competence (β = 0.145; p = 0.001) and Organizational Culture (β = 0.160; p = 0.015) on Employee Performance. This finding confirms that strengthening organizational competence and culture needs to be accompanied by increasing work engagement to optimize employee performance in the plantation sector