Employee Engagement as a Performance Driver of State-Owned Enterprises (SOE’s) in Indonesia

Abstract

One of the key elements in the operational performance of State-Owned Enterprises (SOEs) is the improvement of quality planning, human resources (HRs), and financial management that can serve as a monitoring tool as well as a performance driver. Herein, the research examined the extent to which employee engagement, comprised of cognitive engagement, emotional engagement, and behavioral engagement could drive employee performance in Indonesian SOEs. The research was conducted with a survey method to 429 middle managers in 141 SOEs in Indonesia. Data were collected through an indirect communication technique using a questionnaire and direct communication techniques using limited interviews and documentary studies. Data were analyzed descriptively through weighted averages and inferentially through Structural Equation Modelling (SEM). The results of the study show that: Employee engagement in Indonesian SOEs was in the “good” category, but not optimal. The performance of the SOEs managers was measured based on the total performance scorecard (TPS). Employee engagement (cognitive, emotional, and behavioral) partially and simultaneously contributed positively and significantly to the improvement of the performance of Indonesian SOEs based on the total performance scorecard