Determinations of employee engagement and employee performance at international freight forwarding company

Numerous companies have identified five determinations that contribute to low labor productivity in Indonesian freight forwarding companies. It highlights the necessity for comprehensive strategies to enhance employee performance. Therefore, this study investigates the determinations of servant leadership, training, self-efficacy, and discipline on employee performance in freight forwarding companies. The research involved 337 participants, including 164 operational seaport employees, and used purposive sampling. The study used SmartPLS as an analysis tool and conducted tests such as validity, reliability, inner model, outer model, and hypothesis test. The results showed that self-efficacy had no significant determination on employee engagement, discipline had a significant determination, servant leadership significantly impacted employee engagement, and training had a significant determination on performance. Self-efficacy was not significantly influenced by employee engagement and self-efficacy, but was mediated by employee engagement and self-efficacy. Employee engagement and discipline mediated the significant determination of discipline on employee performance, while employee engagement and servant leadership mediated the significant determination of servant leadership on employee performance. The study also found that factors like working conditions, culture, support, career development opportunities, workload, and work-life balance significantly affect employee performance in freight forwarding companies. Training and positive feedback were found to be crucial for self-efficacy development. The findings can help practitioners and organizational management design effective strategies and policies to improve employee engagement and performance.