THE EFFECT OF EMPLOYEE ENGAGAMENT AND WORK MOTIVATION ON START-UP EMPLOYEE PERFORMANCE WITH WORKFORCE AGILITY AS MODERATOR

Abstract

This study aimed to analyze the effect of employee engagement and work motivation on employee performance with workforce agility as a moderating variable in start-up companies located in Special Region of Yogyakarta and Central Java. The sampling technique used in this study was purposive sampling, with a total of 95 respondents who met the criteria. Primary data were collected through questionnaires distributed via Google Forms, which had been tested for validity and reliability. Data analysis was conducted using the Structural Equation Modeling (SEM) approach based on Partial Least Squares (PLS) with SmartPLS 4 software. The results of the study indicate that employee engagement and work motivation have a positive and significant effect on employee performance. Workforce agility was found to serve as a moderating variable that strengthens the effect of work motivation on employee performance but weakens the effect of employee engagement on employee performance. These findings suggest that in the dynamic context of start-up environments, workforce agility plays a crucial role in enhancing the effect of work motivation on employee performance, while it may diminish the impact of employee engagement. Future research is recommended to consider additional variables such as organizational culture, job satisfaction, or work stress.