Career competencies and employee performance: Mediating roles of job crafting and employee engagement in Islamic banking in North Sumatra, Indonesia

Abstract

This study focuses on highlighting the performance of employees in Sharia banking. The research gap in this study is the impact of job crafting on employee performance. Thus, this study aims to investigate the role of career competencies and job crafting against employee performance mediated by employee engagement of Sharia banking employees in North Sumatra, Indonesia. The paper used the stratified random sampling technique with disproportionate random samples. The sample involved 386 Sharia bank employees in North Sumatra, Indonesia. The data were analyzed using the SEM PLS approach. The hypotheses results suggest that job crafting and employee engagement have a significant impact on employee performance, job crafting has a significant effect on employees’ engagement, career competencies have a major impact on job crafting (< 0.05), career competencies do not have an impact on employee engagement and employee performance (> 0.05). Indirectly, career competencies influence employee engagement and employee performance through job crafting. Career competencies influence employee performance through job crafting and employee performance. Job crafting has a significant impact on employee performance at employee engagement < 0.05, and career competencies do not have a significant effect on employee performance through employee engagement. The implications are that job crafting has a role inherent in the individual level of an employee and as a strategy to emphasize employee engagement and employee performance in the Sharia banking sphere in North Sumatra, Indonesia.