Work Discipline and Employee Engagement on Employee Performance: The Mediating Role of Job Satisfaction

Abstract

This study examines the effects of work discipline and employee engagement on employee performance, with job satisfaction as a mediating variable, at the Regional Water Supply Company (PDAM) of Magelang City. Employee performance is essential for ensuring the effective delivery of public services, particularly in organizations that provide basic services to the community. This study employed a quantitative approach using partial least squares structural equation modeling (PLS-SEM). Data were collected through questionnaires administered to 102 permanent employees selected using purposive sampling. The results indicate that work discipline and employee engagement do not have significant direct effects on employee performance. However, both variables have positive and significant effects on job satisfaction, while job satisfaction has a positive and significant effect on employee performance. The indirect effects are also significant, indicating that job satisfaction fully mediates the relationships between work discipline and employee performance and between employee engagement and employee performance. These findings suggest that work discipline and employee engagement contribute to improved employee performance primarily when they enhance employees’ job satisfaction.