The Relationship between Employee Satisfaction and Employee Performance mediated by Employee Engagement

Abstract

Countries all over the world are encouraged to improve the performance quality of their human resources as a result of the globalization era’s growing level of competitive competition. Performance and employee satisfaction are closely related, whereas high employee satisfaction typically leading to improve employee performance and a sense of engagement to the organization. This research aims to study and analyze the influence of employee satisfaction in employee engagement towards employee performance. Using certain criteria, 110 employees of PT. IDS Medical Systems Indonesia were selected as the sample. The technique used to collect data from the respondents is questionnaires. Further, analysis model used is Structural Equation Model (SEM) with the basis of theory and concept with Smart-PLS software. This study found that employee satisfaction has direct significant effect on employee engagement and has a direct and significant effect on employee performance.