The Effect of Employee Engagement and Job Involvement on Employee Performance with Job Satisfaction as an Intervening Variable At PT Pelni (Persero) Surabaya Branch

The decline in employee performance has become a critical issue in many organizations and is often associated with low levels of employee engagement and job involvement. This study aims to examine the effect of employee engagement on employee performance, the effect of job involvement on employee performance, and the indirect effects of employee engagement and job involvement on employee performance through job satisfaction as an intervening variable. This research was conducted at PT Pelni (Persero), Surabaya Branch, involving 76 employees as respondents. Data were collected using a structured questionnaire and analyzed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) approach with the assistance of SmartPLS version 4. The results indicate that employee engagement has a positive and significant effect on employee performance. Job involvement also shows a positive and significant effect on employee performance. Furthermore, employee engagement positively and significantly influences employee performance through job satisfaction as an intervening variable. Similarly, job involvement has a positive and significant indirect effect on employee performance through job satisfaction. These findings highlight the importance of enhancing employee engagement and job involvement to improve job satisfaction and, ultimately, employee performance.