IMPACTS OF GRIT, SELF-EFFICACY, AND TRANSFORMATIONAL LEADERSHIP ON JOB CRAFTING AND WORK ENGAGEMENT: EVIDENCE FROM MILLENNIAL BANK EMPLOYEES IN INDONESIA

Abstract

With millennials comprising 79% of Indonesia’s regional development banks (BPDs) workforce, understanding factors affecting their work engagement is crucial for organizational performance. This study examines how personal resources (grit and self-efficacy) and transformational leadership influence job crafting and work engagement among millennial employees in BPDs. Using a cross-sectional design, 477 millennial employees (aged 25-35) from six BPDs in Java, Indonesia, were surveyed. Data analysis using partial least squares structural equation modeling revealed that self-efficacy had the strongest direct effect on both job crafting (β = 0.303, p < 0.001) and work engagement (β = 0.276, p < 0.001), followed by grit’s impact on job crafting (β = 0.244, p < 0.001) and work engagement (β = 0.181, p < 0.001). Job crafting significantly influenced work engagement (β = 0.285, p < 0.001) and partially mediated the relationships between personal resources and work engagement. While transformational leadership did not moderate the relationship between job crafting and work engagement (β = –0.010, p > 0.05), it showed significant direct effects on both variables (β = 0.257 and β = 0.344, respectively). These findings demonstrate the importance of developing employees’ personal resources and leadership capabilities to enhance work engagement in Indonesia’s banking sector.