The Impact of High-Performance Work Systems on the Engagement of Millennial Employees: The Mediating Role of Resilience and Job Satisfaction in Indonesian Banking Companies
Aufa Bassam1 , Sukesi2 Kumarashvari Subramaniam3
1,2Dr. Soetomo University, East Java, Indonesia, 3British University Vietnam
e-mail: 1aufabassam@gmail.com , 2sukesi@unitomo.ac.id , 3eiswary@hotmail.com
Abstract
Competition in Indonesia’s banking industry become more intensive and every bank poses a major challenge in human resource management due to high turnover rates. This is because companies are unable to retain employees, especially millennials. The High-Performance Work System (HPWS) is considered an effective strategy to overcome this problem. Therefore, this study was conducted to analyze the effect of HPWS on millennial employee engagement through resilience and job satisfaction as intervening variables. The data were collected through an online questionnaire completed by 190 private banking millenial employees in Indonesia, and was analyzed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The study results show that HPWS has a significant positive effect on millennial employees’ engagements, resilience and job satisfaction. However, the role of job satisfaction as an intervening variable between HPWS and employee engagement was not found to be significant. The results of this study theoretically expand a relationship between HPWS and employee engagement, while guiding companies on how to strengthen the resilience and engagement of millennial employees.