The Role of Employee Engagement in Mediating the Effects of Organizational Change on Employee Performance

Abstract

This study aims to analyze the influence of organizational change and employee resilience on employee performance through employee engagement as an intervening variable at the North Sumatra Regional Police Supervisory Inspectorate. Organizational change is a key factor in enhancing employees’ ability to adapt to the demands of bureaucratic reform, while employee resilience plays a role in maintaining work effectiveness under stressful and changing conditions. This study employs a quantitative approach using a survey method. The study population and sample consist of 98 employees of the North Sumatra Regional Police Supervisory Inspectorate, selected using saturation sampling. Data were collected via a questionnaire using a Likert scale. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of the SmartPLS 3.0 software. The results indicate that organizational change has a positive and significant effect on employee performance, with a t-statistic of 2.319 and a p-value of 0.021. Organizational change also has a positive and significant effect on employee engagement, with a t-statistic of 7.663 and a p-value of 0.000. Furthermore, employee resilience was found to have a positive and significant effect on employee performance, with a t-statistic of 6.197 and a p-value of 0.000, as well as a positive and significant effect on employee engagement, with a t-statistic of 8.404 and a p-value of 0.000. Employee engagement also had a positive and significant effect on employee performance, with a t-statistic of 10.599 and a p-value of 0.000. Mediation analysis revealed that employee engagement mediates the effect of organizational change on employee performance, with a t-statistic of 4.052 and a p-value of 0.000, and mediates the effect of employee resilience on employee performance, with a t-statistic of 5.968 and a p-value of 0.000. This study shows that improvements in employee performance are influenced not only by organizational structural factors but also by employees’ psychological aspects through work engagement. Therefore, organizations need to strengthen their change strategies, build employee resilience, and create a work environment that can sustainably enhance employee engagement.