The influence of organizational commitment to employee performance with employee engagement and organizational culture as a mediator In private banking company

Banking is estimated to be one of the business fields that will be affected by disruption in the development of industry 4.0. PT XYZ, as the largest private banking company in Indonesia, has not implemented the employee reduction strategy as is done by banks or other companies in general in response to the challenges that exist. Start-up companies have sprung up like an endemic in Indonesia. This start-up company with technology and just few human resources is able to shift conventional businesses that have previously taken root. Not only that, the current business era is also faced with a transitional period of the worker generation from the Baby Boomers genes and X genes to Y genes and Millennials. The orientation of generation Y and millennials that is different from their predecessors requires companies to make adjustments in order to maintain them so they want to stay in the company. The research objective is to examine the relationship between Organizational Commitment and Employee Performance that mediated by Employee Engagement and Organizational Culture. The target of research respondents is permanent employees with a population of 23,000 where the number of samples taken based on the Slovin method is 761. Data were collected through random questionnaires. The data analysis process uses the SEM-PLS method to see the relationship between variables. The results of the study found that Organizational Commitment had a significant effect on Employee Performance either directly or mediated by Organizational Culture. On the other hand, the role of Employee Engagement, either directly or as a mediator, consistently does not have a significant impact on Employee Performance. Therefore it can be concluded that the key to improving Employee Performance in this study is to encourage Organizational Commitment and Organizational Culture in each employee. The R2 achievement of each dependent variable in the study was 0.714 for Employee Engagement, 0.623 for Organizational Culture and 0.801 for the Employee Performance variable. Which means that each variable has a substantial relationship and tends to be strong within another (Chin, 1988).