Career competencies and employee performance: Mediating roles of job crafting and employee engagement in Islamic banking in North Sumatra, Indonesia

Abstract

This study focuses on highlighting the performance of employees in Sharia banking. The research gap in this study is the impact of job crafting on employee performance. Thus, this study aims to investigate the role of career competencies and job crafting against employee performance mediated by employee engagement of Sharia banking employees in North Sumatra, Indonesia. The paper used the stratified random sampling technique with disproportionate random samples. The sample involved 386 Sharia bank employees in North Sumatra, Indonesia. The data were analyzed using the SEM PLS approach. The hypotheses results suggest that job crafting and employee engagement have a significant impact on employee performance, job crafting has a significant effect on employees’ engagement, career competencies have a major impact on job crafting (< 0.05), career competencies do not have an impact on employee engagement and employee performance (> 0.05). Indirectly, career competencies influence employee engagement and employee performance through job crafting. Career competencies influence employee performance through job crafting and employee performance. Job crafting has a significant impact on employee performance at employee engagement < 0.05, and career competencies do not have a significant effect on employee performance through employee engagement. The implications are that job crafting has a role inherent in the individual level of an employee and as a strategy to emphasize employee engagement and employee performance in the Sharia banking sphere in North Sumatra, Indonesia. AcknowledgmentThis study is supported by the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia for funding on categories of basic research of high-ranking University (PDUPT) Program in 2022 on Economics issue with contract number: 256/ES/PG.02.00.PT/2022 ; 120/LL1/LT/K/2022 AND 204/II.3-AU/UMSU-LP2M/C/2022. Furthermore, thanks are conveyed to all levels of management at Universitas Muhammadiyah Sumatera Utara and the leaders of the Faculty of Economics and Business. Then thanks also go to BSI (Bank Syariah Indonesia), Bank Muamalat, BMS (Bank Mega Syariah), and all employees of Islamic Banking in North Sumatra who have contributed to this research.