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

Keywords: Company performance; employee engagement;
cognitive engagement; emotional engagement; behavior
engagement.