The Effect of Employee Engagement and Digital HR Service Quality on Employee Loyalty through Job Satisfaction as a Mediation Variable: A Study on HPC Scrap Metal Timor-Leste
DOI:
https://doi.org/10.59971/meta-journal.v3i6.504Keywords:
Employee Engagement, HR Digital Service Quality, Job Satisfaction, Employee Loyalty, PLS-SEMAbstract
This study aims to analyze the influence of employee engagement and digital human resource (HR) service quality on employee loyalty, both directly and indirectly through job satisfaction as a mediating variable, in HPC Scrap Metal Timor-Leste employees. The study used an explanatory quantitative approach with a survey method of 100 employee respondents through a 45-item questionnaire on a 5-point Likert scale. Data was analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0. The results showed that the quality of HR digital services had a positive and significant effect on job satisfaction (β = 0.386; p = 0.009), and job satisfaction had a positive and significant effect on employee loyalty (β = 0.405; p < 0.001). Employee engagement did not have a significant effect on job satisfaction or employee loyalty, and the quality of HR digital services did not have a direct effect on employee loyalty. Job satisfaction fully mediated the effect of the quality of HR digital services on employee loyalty (β = 0.156; p = 0.035), but did not mediate the effect of employee engagement. The relatively weak R² value (0.111 for job satisfaction and 0.151 for employee loyalty) indicates that other factors outside the model also play a role. These findings indicate that improving the quality of digital HR services, which is truly perceived as an increase in job satisfaction, is a key strategy in building employee loyalty in metalworking companies in developing countries.
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