RJOAS June 2025
by Zamzani Ramdani, Husnan Lalu Hamdani, Wahyulina Sri (Master’s Study Program of Management, Faculty of Economics and Business, University of Mataram, Indonesia)
This study aims to examine the mediating role of work motivation on the effect of employee engagement and transactional leadership on employee performance. This research approach is a positivist paradigm using causal associative. The data collected using the census method were 75 respondents, who were taken from all employees of CV Atlantis Jaya Pratama. The results showed that employee engagement and transactional leadership have a significant positive effect on employee performance and work motivation, and work motivation has a significant positive effect on employee performance. In addition, work motivation is able to mediate the effect of employee engagement and transactional leadership on employee performance. Work motivation is a very influential variable in creating optimal performance. Therefore, companies need to continue to maintain and improve managerial practices that can encourage work motivation, both through rewards, recognition, development opportunities, and the creation of a healthy and inspiring work environment.
Human resources (HR) are important assets that cannot be separated from the success of an organization. The success of the company is strongly influenced by employee performance, which is the result of the ability and contribution of each individual in achieving company goals. According to Flippo, (1984) human resource management covers all aspects related to employee management, from recruitment, development, to termination of employment, with the aim of improving individual welfare and supporting the achievement of organizational goals effectively and efficiently.
Employee performance is a determining factor in achieving the company's vision and mission. Mangkunegara, (2019) states that performance is the result of work achieved by employees in carrying out their duties with a certain quality and quantity. Conversely, poor performance can hinder organizational goals, so companies need to focus on improving employee performance. Robbins & Judge (2017) identify several indicators of employee performance, such as work quality, work quantity, timeliness, effectiveness, and independence.
Factors that affect employee performance are very diverse, ranging from technical ability, work motivation, to organizational culture. According to Kasmir, (2016) factors such as leadership, commitment, and work environment have a significant role in influencing individual work results. One factor that has received attention is employee engagement, which can affect the level of employee performance. Employees' emotional involvement in their work, as explained by Kahn, (1990) is an important element in encouraging high productivity and morale.
Employee engagement, according to Armstrong, (2009) is employees' appreciation and enthusiasm for the work they do, which is reflected in extra efforts to achieve company goals. Some previous studies, such as those conducted by Jufrizen et al. (2022) showed that employee engagement has a significant influence on employee performance. Employees who are emotionally involved in their work will be more focused and excited, so that their performance increases.
In addition, leadership style also has a big role in influencing employee performance. Leaders who adopt a transactional leadership style, as described by Bass & Avolio, (1994) use a system of rewards and punishments to achieve organizational goals. This leadership style has proven effective in creating an organized work structure and achieving set targets. Research by Abdelwahed et al. (2023) shows that transactional leadership has a positive effect on employee performance, especially in organizations that require achieving clear and measurable targets.
Work motivation is also an important factor that no less affects employee performance. Robbins & Judge, (2017) explain that motivation is a process that encourages individuals to work hard to achieve goals. High motivation will encourage employees to try better and achieve optimal results. For example, research by Tahar & Abdillah, (2021) shows that work motivation has a significant influence on employee performance, although it cannot mediate the relationship between leadership style and performance.
CV Atlantis Jaya Pratama, as a smartphone retail company on Lombok Island, also faces challenges in optimizing employee performance. Based on the evaluation results of the Key Performance Indicator (KPI) in 2024, although most employees have met the set targets, there are several indicators that need to be improved, such as attendance discipline and cleanliness of the product display area. This study aims to explore the factors that influence employee performance, specifically employee engagement, transactional leadership style, and work motivation, and how these factors can be integrated to improve employee performance at CV Atlantis Jaya Pratama.
The phenomenon observed within the company indicates that many employees lack emotional engagement with their work. Additionally, the dominant transactional leadership style suggests a need to enhance work motivation to maximize performance. Therefore, it is crucial to analyze how these three factors interact to improve employee performance and their contribution to the company's success.
In the retail sector, one of the main challenges is maintaining employee engagement, a concept that measures the extent to which employees feel connected and involved with their work and the company's goals. Based on the 2024 KPI report, several aspects of employee performance show less than optimal results, such as high absenteeism and inadequate product cleanliness. These issues indicate that there are several factors that influence employee engagement levels, which in turn are related to their performance at work.
In addition, transactional leadership as a managerial approach to managing employees can also play an important role in motivating them. In this context, a leader who relies on a reward and punishment system may be able to motivate employees to meet targets, but if not implemented wisely, it can affect the relationship between employees and the company. Therefore, effective leadership must pay attention to communication, trust, and providing appropriate incentives to encourage employees to reach their full potential.
Meanwhile, work motivation also plays an equally important role. This factor includes employees' need for recognition, opportunities for growth, and supportive working conditions. High work motivation can increase employee enthusiasm and commitment to the company. However, if this motivation is not properly addressed, employees tend to feel dissatisfied with their work, which can have a negative impact on their performance and ultimately harm the company.
The challenges faced by CV Atlantis Jaya Pratama reflect the need to gain a deeper understanding of the factors influencing employee performance. Therefore, this study aims to analyze the influence of employee engagement, transactional leadership, and work motivation on employee performance in the company. By identifying the factors that contribute to improved performance, it is hoped that the company can take more appropriate steps in managing human resources and creating a more productive and supportive work environment.
Performance is the result of work measured in terms of quality and quantity achieved by an employee in carrying out their duties in accordance with the responsibilities assigned to them (Mangkunegara, 2019). Robbins (2018) describes five indicators of employee performance, namely work quality, work quantity, timeliness, effectiveness, and independence.
Kahn (1990) in his theory, employee engagement is a mental and emotional state of employees that includes physical, cognitive, and emotional involvement in their work. Kahn (1990) further explains that employee engagement can increase work motivation by creating a strong sense of connection between employees and their work. When employees feel valued, given opportunities to grow, and feel that their work is meaningful, they will be more motivated to contribute their best efforts. According to Schaufeli & Bakker (2016), there are three indicators of employee engagement: 1) vigor; 2) dedication; and 3) absorption. According to Schaufeli et al. (2002), in their theory, employee engagement is a positive, satisfying psychological state related to work.
Transactional leadership is a process in which leaders and followers exchange needs and services to achieve specific goals, with leaders providing rewards or rewards in return for followers' compliance and performance (Burns, 1978). According to Bass (1990), as the developer of transactional leadership theory, transactional leadership operates on two main components: contingent reward control (rewards that depend on the achievement of goals) and management by exception (management based on exceptions). Furthermore, Bass (1990) states that this transactional leadership style can be highly effective in improving employee performance in clear and structured tasks, where goal achievement can be easily monitored and measured.
Motivation is the willingness to exert a high level of effort toward organizational goals, which is influenced by the ability of that effort to satisfy individual needs (Robbins & Judge, 2017). According to Armstrong & Baron (2005), work motivation is influenced by two main factors, namely intrinsic factors originating from within the individual and related to internal drives that motivate employees to work better, and extrinsic factors originating from the work environment and involving the work environment and organizational policies that can enhance or hinder employee motivation. According to Mangkunegara (2019), there are five indicators of work motivation, namely responsibility, work performance, opportunities for advancement, recognition of performance, and challenging work.
Employee Engagement is the level of involvement of a person in their job role, where individuals utilize and express themselves physically, cognitively, and emotionally during the performance of that role (Kahn, 1990). Schaufeli et al. (2002) also emphasize that employee engagement not only affects individual performance but can also improve team and overall organizational performance. When employees are engaged, they are more productive, have fewer absences, and tend to be more loyal to the company. They are also more likely to contribute to innovation and continuous improvement in their work.
Employee engagement is a positive, fulfilling psychological state related to work, characterized by three main dimensions: vigor, dedication, and absorption (Schaufeli et al., 2002). It is emphasized that employee engagement not only affects individual performance but can also improve team and overall organizational performance. When employees are engaged, they are more productive, have lower absenteeism, and tend to be more loyal to the company. They are also more likely to contribute to innovation and continuous improvement in their work (Schaufeli et al., 2002).
Research shows that employee engagement has a positive effect on employee performance, as found by Jufrizen et al. (2022) shows that work engagement plays a significant role in improving employee performance. Additionally, Sugianingrat et al. (2019) demonstrate that employee engagement significantly enhances employee performance. Furthermore, research by Nusraningrum et al. (2024) indicates that employee engagement significantly impacts employee performance, emphasizing the importance of employee involvement in improving work performance. Based on this review, the first hypothesis of this study is as follows:
H1: Employee Engagement has a positive and significant effect on Employee Performance.
According to Bass's theory (1990), leaders reward employees who meet or exceed predetermined performance standards and punish or correct employees who fail to meet those standards. Research also supports the impact of transactional leadership on performance, as found by Abdelwahed et al. (2023), transactional leadership has a positive and significant influence on employee performance. It is further explained that transactional leadership encourages employees to be more aware of fulfilling their duties, which in turn improves performance. Research by Adriansyah et al. (2020) found that transactional leadership style improves employee performance. Additionally, Alrowwad et al. (2020); Lee et al. (2023); and Tahar & Abdillah, (2021) explain findings showing that transactional leadership can have a positive and significant effect on performance. Based on this review, the second hypothesis of this study is as follows:
H2: Transactional Leadership has a positive and significant effect on Employee Performance.
Employee engagement, according to Kahn (1990), is a mental and emotional state of employees that includes physical, cognitive, and emotional involvement in their work. Furthermore, employee engagement can enhance work motivation by creating a strong sense of connection between employees and their jobs. When employees feel valued, given opportunities to grow, and perceive their work as meaningful, they are more driven to contribute their best efforts (Kahn, 1990). Research shows that employee engagement has a positive effect on work motivation. Sitorus et al. (2022) shows that green work engagement can improve employee performance in implementing environmentally friendly practices in the workplace. In other words, employee involvement in green initiatives increases their motivation to contribute better to organizational goals. Research by Saputra et al. (2024) shows that work engagement has a positive and significant influence on work motivation. Employees who are actively involved in their work tend to have higher motivation, which in turn improves their performance. Furthermore, research by Suwarno et al. (2023) shows that work engagement has a positive and significant effect on work motivation. Based on this review, the third hypothesis of this study is as follows:
H3: Employee Engagement has a positive and significant effect on Work Motivation.
Bass (1990) further explains that two main components of transactional leadership, namely contingent reward (rewards based on goal achievement) and management by exception (monitoring and correcting errors), can directly influence employee work motivation (Bass, 1990). Other studies, such as those conducted by Adriansyah et al. (2020); Caterin et al. (2024); Lazuardi & Suharjo, (2023); and Tahar & Abdillah, (2021) indicate that transactional leadership has a positive and significant influence on work motivation. This means that the application of a transaction-oriented leadership style, such as providing rewards for achieving targets, can increase employee motivation in carrying out their tasks. Therefore, the fourth hypothesis is as follows:
H4: Transactional Leadership has a positive and significant effect on Work Motivation.
Motivation is the willingness to exert a high level of effort toward organizational goals, which is influenced by the ability of that effort to satisfy individual needs (Robbins & Judge, 2017). According to Armstrong & Baron (2005), work motivation is influenced by two main factors, namely intrinsic factors originating from within the individual and related to internal drives that motivate employees to work better, and extrinsic factors originating from the work environment and involving the work environment and organizational policies that can enhance or hinder employee motivation. Mangkunegara (2019), there are five indicators of work motivation, namely responsibility, work performance, opportunities for advancement, recognition of performance, and challenging work. Herzberg (1966) in his Two-Factor Theory, work motivation is divided into two categories: motivators (satisfiers) and hygiene factors (dissatisfiers). Motivating factors, which include achievement, recognition, and responsibility, directly influence work motivation, which in turn impacts employee performance. Several studies, such as the one conducted by Catherin et al. (2025); Jufrizen et al. (2022); Lazuardi & Suharjo, (2023); Setiawan & Kasmari, (2024); Suwarno et al. (2023); Tahar & Abdillah, (2021); Umam, (2022); and Wardiansyah et al. (2024) show that work motivation has a positive and significant effect on employee performance. Based on these findings, the fifth hypothesis of this study is as follows:
H5: Work Motivation has a positive and significant effect on Employee Performance.
Schaufeli et al. (2002), employee engagement is a positive psychological state that involves vigor (enthusiasm), dedication, and absorption in work. Employees with high levels of engagement tend to show more effort in their work, which leads to improved performance. Employees who feel involved in their work are more motivated to work well and strive to achieve maximum results, so they tend to perform better. According to Bakker & Demerouti (2008) in the Job Demands-Resources (JD-R) theory, work factors that lead to increased engagement will affect work motivation, which in turn improves employee performance. In this context, work motivation acts as a mediator between employee engagement and performance. Employees who are psychologically involved in their work (high engagement levels) are more likely to feel a sense of accomplishment in their work, which motivates them further. This higher work motivation, in turn, drives improved performance, both in terms of the quality and quantity of output produced. Several related studies, such as those by Jufrizen et al. (2022); Saputra et al. (2024); and Suwarno et al. (2023) show that work motivation plays a significant mediating role in the relationship between employee engagement and employee performance. Based on these findings, the sixth hypothesis of this study is as follows:
H6: Work Motivation mediates the effect of Employee Engagement on Employee Performance.
According to Bass (1990), transactional leadership focuses on clear exchanges between leaders and employees. Transactional leaders use reward and punishment systems to motivate employees to achieve organizational goals. Employees led by effective transactional leaders tend to perform better because they understand what is expected of them and what they will receive as a reward for their achievements. Bass (1990) argues that transactional leadership consists of two main components: Contingent Reward, where leaders provide rewards or compensation based on employee performance, and Management by Exception, where leaders only intervene when employees fail to meet standards or deviate from expectations. Employees who are rewarded for their achievements will feel more motivated to work harder, which in turn can improve their performance.
Vroom's Expectancy Theory (1964) supports this view, explaining that work motivation is a function of the expectation that the effort expended will result in the desired performance and that the performance will be rewarded in accordance with the expected results. In the context of transactional leadership, if a leader provides rewards that are commensurate with achievements, employees will feel more motivated to work harder. This increased motivation can then mediate the influence of transactional leadership on employee performance, as more motivated employees tend to perform better. Several studies, such as those by Didit (2020), Sari et al. (2022), and Ulum (2022), indicate that job satisfaction can mediate the impact of organizational culture on employee performance. These findings emphasize that a positive organizational culture can improve job satisfaction, which ultimately contributes to enhancing employee performance. Therefore, the seventh hypothesis of this study is as follows:
H7: Work Motivation mediates the effect of Transactional Leadership on Employee Performance.
This study uses a quantitative approach with a causal associative type, which examines the relationships between one or two variables and the mediating effect, focusing on the impact of employee engagement and transactional leadership on employee performance mediated by work motivation among employees at CV Atlantis Jaya Pratama, Mataram, NTB. Data is collected through a census sampling, with the population consisting of all employees, totaling 75 people who are selected as respondents. The data collection technique uses a questionnaire with a Likert scale. The collected data is analyzed using path analysis techniques with SmartPLS 3 software, which includes evaluation of the measurement model (outer model) through loading factor (validity value > 0.500), convergent validity (AVE value > 0.500), discriminant validity, and composite reliability (value > 0.700), evaluation of the structural model (inner model), as well as model quality and goodness-of-fit evaluation using R-Square (R²), and (F²).
Data analysis from 75 respondents at CV Atlantis Jaya Pratama, Mataram, showed that the majority were male (54.67%), while the remaining were female (45.33%). The primary age group was 20 to 25 years old (52%), followed by the 26 to 30 years old group (36%), and those over 30 years old (12%). In terms of job section, most respondents were staff (86.67%), while a smaller portion served as coordinators (13.33%). Regarding work tenure, the majority had worked for 1 to 2 years (65.9%), followed by those with more than 3 years of service (11.8%), and those with exactly 3 years of service (10.6%).
Based on the results of the outer loading measurement for the variables of transformational leadership, organizational culture, job satisfaction, and employee performance, they have met the criteria for use as measurement variables due to having outer loading values greater than 0.500 (outer loading > 0.500) (Chin, 1998). Therefore, all variables are considered feasible or valid to be used for further research analysis.
Discriminant validity is measured using the square root of the Average Variance Extracted (AVE) value, with a recommended value above 0.500 (Hair et al., 2021). Based on the table above, all research variables show AVE values greater than 0.500 (AVE > 0.500), including Employee Engagement (0.660), Transactional Leadership (0.665), Work Motivation (0.696), and Employee Performance (0.653). These results indicate that each variable meets the discriminant validity standard. Therefore, the variables in this study can clearly distinguish themselves from other variables, showing that the constructs being measured are valid and reliable, and the research results have good validity and can be relied upon for accurate conclusions.
A construct is considered reliable if the composite reliability value is above 0.700 (Sekaran, 2014). The reliability test can be reinforced by using the Cronbach's alpha value. A variable can be considered reliable or meet Cronbach's alpha if it has a Cronbach's alpha value > 0.700 (Sekaran, 2014).
Based on the table above, the results show that the composite reliability and Cronbach's alpha values for all variables are greater than 0.7. Therefore, this result indicates that each research variable has met the Cronbach's alpha requirements, and it can be concluded that all variables have a high level of reliability.
Based on the results presented, all tested paths show a positive relationship direction. Employee Engagement influences Employee Performance with a coefficient of 0.219, and Transactional Leadership with a coefficient of 0.182. Employee Engagement also influences Work Motivation with a coefficient of 0.407, and Transactional Leadership with a coefficient of 0.486. Furthermore, Work Motivation influences Employee Performance with a coefficient of 0.590. In addition, Employee Engagement influences Employee Performance mediated by Work Motivation with a coefficient of 0.240, and Transactional Leadership influences Employee Performance mediated by Work Motivation with a coefficient of 0.287. All these relationships indicate that improvements in the exogenous variables contribute to the enhancement of the related endogenous variables.
Based on the table above, in principle, this study uses two variables that are influenced by other variables. The R-Square value of the Employee Performance (Y) variable is 0.936 or 93.6%, meaning that the Employee Engagement and Transactional Leadership variables can substantially explain the Employee Performance variable at a level of 93.6% (model in the Strong category). Meanwhile, the R-Square value for the Work Motivation (Z) variable is 0.735 or 73.5%, indicating that the Employee Engagement and Transactional Leadership variables substantially explain the Work Motivation variable at a 73.5% level (model in the Strong category), with the remainder influenced by other factors not included in the research variables.
Based on the results in the table above, it is known that the f-square value for the Employee Engagement variable on Employee Performance is 0.055, which is below 0.15, indicating a small or weak effect. The Transactional Leadership variable on Employee Performance has a value of 0.428, which is above 0.35, indicating a large or strong effect. The Employee Engagement variable on Work Motivation has a value of 0.477, which is also above 0.35, indicating a large or strong effect. The Transactional Leadership variable on Work Motivation has a value of 0.183, which is above 0.15 but below 0.35, indicating a medium effect. Meanwhile, the Work Motivation variable on Employee Performance has a value of 1.633, which is far above 0.35, indicating a very large or strong effect.
Hypothesis 1: States that there is a positive and significant effect of employee engagement, which is able to improve employee performance, so the first hypothesis (H1) is accepted.
Hypothesis 2: States that there is a positive and significant effect of transactional leadership, which is able to improve employee performance, so the second hypothesis (H2) is accepted.
Hypothesis 3: States that there is a positive and significant effect of employee engagement, which is able to improve work motivation, so the third hypothesis (H3) is accepted.
Hypothesis 4: States that there is a positive and significant effect of transactional leadership, which is able to improve work motivation, so the fourth hypothesis (H4) is accepted.
Hypothesis 5: States that there is a positive and significant effect of work motivation, which is able to improve employee performance, so the fifth hypothesis (H5) is accepted.
Hypothesis 6: States that there is a positive and significant effect of employee engagement, which is able to improve employee performance through work motivation, so the sixth hypothesis (H6) is accepted.
Hypothesis 7: States that there is a positive and significant effect of transactional leadership, which is able to improve employee performance through work motivation, so the seventh hypothesis (H7) is accepted.
The results of hypothesis testing show a positive and significant relationship between employee engagement and employee performance at CV Atlantis Jaya Pratama. The higher the employee engagement, the better the employee performance achieved. Employee engagement at CV Atlantis Jaya Pratama involves physical, emotional, and cognitive commitment, where employees demonstrate enthusiasm, resilience, and a clear understanding of their roles. This engagement is supported by a system of rewards and recognition, which makes employees feel valued and motivated to perform well.
According to Schaufeli et al. (2002), employee engagement is a positive psychological state characterized by vigor, dedication, and absorption. These dimensions encourage employees to be more productive, loyal, and innovative in their work. When employees are engaged, they develop a stronger emotional attachment to the organization, which fosters responsibility and high performance.
Previous studies support these findings. Jufrizen et al. (2022) found that employee engagement positively affects performance at PT Telekomunikasi Indonesia Tbk Witel Medan. Sugianingrat et al. (2019) also reported that high engagement directly improves work performance, while Nusraningrum et al. (2024) emphasized that engaged employees contribute significantly to achieving organizational goals.
Therefore, employee engagement at CV Atlantis Jaya Pratama creates a motivated and committed workforce that not only meets performance standards but also takes initiative and shows dedication. Maintaining and enhancing employee engagement is crucial for sustaining high performance and supporting the organization’s long-term success.
The Influence of Transactional Leadership on Employee Performance. The results of hypothesis testing indicate a positive and significant influence of transformational leadership on employee performance at CV Atlantis Jaya Pratama. The higher the implementation of transformational leadership by management, the higher the employee performance achieved. This leadership style, characterized by inspiration, motivation, idealized influence, and individualized consideration, fosters increased work motivation and emotional engagement among employees.
At CV Atlantis Jaya Pratama, transformational leadership is reflected in high scores on inspirational motivation and individualized consideration. Leaders inspire enthusiasm and address each employee’s personal development needs, making employees feel valued as individuals rather than just task executors. This strengthens their sense of ownership and responsibility toward their work.
Transformational leaders at this company provide not only technical guidance but also motivate employees by giving meaningful purpose to their tasks. This encouragement boosts enthusiasm, creativity, and innovation, which directly improves performance outcomes. Bass and Avolio’s (1994) theory supports these findings, highlighting four components of transformational leadership - idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration - all of which positively affect employees’ psychological and emotional states, leading to enhanced performance and a progressive work culture.
Similar findings were reported by Li et al. (2023), who found that transformational leadership significantly improves employee performance, especially when supported by organizational trust and an innovative culture. Jauhar et al. (2017) also concluded that transformational leadership increases organizational commitment and job satisfaction, creating a positive work environment that boosts dedication and responsibility. Cheung et al. (2021) emphasized that this leadership style fosters a growth-supportive environment, evident at CV Atlantis Jaya Pratama through active employee participation in training and quality improvement programs.
In conclusion, transformational leadership at CV Atlantis Jaya Pratama plays a crucial role in cultivating a collaborative, innovative, and long-term oriented work culture. Management is encouraged to continuously develop transformational leadership capabilities to sustain performance growth and enhance employee well-being.
The Influence of Employee Engagement on Work Motivation. The results of hypothesis testing show a positive and significant effect of employee engagement on work motivation at CV Atlantis Jaya Pratama. The higher the level of employee engagement, the greater the work motivation exhibited by employees. This means that when employees are more emotionally, cognitively, and physically connected to their work, their enthusiasm and morale increase, encouraging them to give their best.
At CV Atlantis Jaya Pratama, strong employee engagement is reflected in employees’ proactive attitudes, pride in their work, and consistent dedication to completing tasks. The company’s supportive work environment, clear recognition systems, and opportunities for personal and professional growth contribute to this high engagement. When employees feel valued, have space to innovate, and receive acknowledgment for their efforts, their work takes on meaningful significance that boosts intrinsic motivation. Kahn (1990) explains that employee engagement occurs when individuals fully express themselves physically, cognitively, and emotionally in their roles. This full involvement builds a strong connection to their work, generating a sense of responsibility and positive energy that ultimately raises overall motivation.
This finding is consistent with research by Sitorus et al. (2022), who found that work engagement significantly influences work motivation because engaged employees feel appreciated and driven to achieve organizational goals. Likewise, Saputra et al. (2024) emphasize that emotional and professional involvement inherent in employee engagement fosters enthusiasm and perseverance in task completion.
In summary, employee engagement plays a vital role in enhancing work motivation. Therefore, management at CV Atlantis Jaya Pratama should sustain and further develop engagement by implementing strategies such as empowerment, effective communication, career development, and fair reward systems. These initiatives are essential to maintain high employee morale and promote sustainable productivity growth.
The Influence of Transactional Leadership on Work Motivation. The hypothesis testing results show that transactional leadership has a positive and significant effect on employee work motivation at CV Atlantis Jaya Pratama. The more effective transactional leadership is applied, the higher the employees’ motivation to work. This indicates that leadership based on performance exchange acts as a strong incentive to boost employee enthusiasm.
At CV Atlantis Jaya Pratama, transactional leadership is reflected through fair recognition of achievements, consistent performance appraisals, and a clear, structured reward system. These practices create a work environment that is competitive but also supportive, which enhances both intrinsic and extrinsic motivation among employees.
According to Bass (1990), transactional leadership functions mainly through contingent rewards and management by exception. When rewards are fairly given based on achievement and mistakes are corrected through appropriate supervision, employees experience clarity, fairness, and order within their work system. This encourages them to be more responsible and to put forth greater effort, knowing their contributions will be rewarded.
This research is consistent with findings from Lazuardi & Suharjo (2023), who found that transactional leadership motivates employees by establishing clear goals and structured rewards. Similarly, Tahar & Abdillah (2021) showed that transactional leadership improves motivation and has a positive short-term impact on managerial performance.
In conclusion, transactional leadership plays a crucial role in building employee work motivation. Therefore, management at CV Atlantis Jaya Pratama should continue to emphasize performance-based rewards and consistent supervision to sustain and enhance employee motivation in the long term.
The Influence of Work Motivation on Employee Performance. The results of hypothesis testing show that work motivation has a positive and significant effect on employee performance at CV Atlantis Jaya Pratama. In other words, the higher the level of employee work motivation, the better the employee performance achieved. This indicates that employees generally have a high level of motivation that supports their performance. Respondents, on average, demonstrate responsible behavior, enthusiasm, and initiative in completing their tasks. Additionally, the supportive work environment, fair rewards, and opportunities for self-development contribute significantly to maintaining and enhancing this motivation.
Work motivation is a psychological condition that drives employees to perform their duties with energy and persistence. Herzberg's Two-Factor Theory (1966) defines motivation as stemming from motivators such as achievement, recognition, and responsibility, along with hygiene factors including working conditions and salary. When motivators are fulfilled, employees experience satisfaction and are motivated to deliver their best performance. At CV Atlantis Jaya Pratama, management has implemented recognition programs, promotion opportunities, and cultivated a healthy work environment, all of which strengthen both intrinsic and extrinsic motivation among employees.
This study aligns with previous research findings. Setiawan & Kasmari (2024) found that work motivation significantly improves employee performance. Umam (2022) emphasized that motivation is a key determinant of performance, even more influential than leadership style. Research by Wardiannsyah et al. (2024) also highlighted that motivation plays a stronger role than work engagement in enhancing performance. Similarly, Zainun et al. (2025) reported that motivated teachers tend to be more enthusiastic, engaged, and productive in their professional duties.
Creating and maintaining a work environment that supports and enhances employee motivation is crucial to achieving optimal performance. Motivation can be fostered through incentives, recognition of achievements, and opportunities for professional growth and job satisfaction. This study underlines the importance of continuously developing systems that sustain high levels of employee motivation, which directly impacts performance improvement at CV Atlantis Jaya Pratama.
The Influence of Employee Engagement on Employee Performance through Work Motivation Mediation. The results of hypothesis testing show that work motivation mediates the effect of employee engagement on employee performance at CV Atlantis Jaya Pratama. In other words, employee engagement can improve employee performance through increased work motivation. When employees are actively engaged and feel emotionally connected to their work, they tend to develop stronger motivation to perform well. This motivation then serves as the driving force that translates engagement into higher work performance.
Employee engagement at CV Atlantis Jaya Pratama is reflected in employees’ enthusiasm, pride in their work, and commitment to company goals. These feelings of involvement encourage employees to put forth energy, time, and attention in their tasks. Work motivation acts as an internal force that helps employees convert their engagement into productive work behavior, especially when they feel valued, are given opportunities for growth, and have meaningful roles.
Employee engagement consists of three main components: vigor (high energy and resilience), dedication (pride and inspiration), and absorption (full involvement in work activities) (Schaufeli et al., 2002). These components collectively foster strong work motivation, which positively influences the quality, timeliness, and efficiency of employees’ work.
This finding aligns with the Job Demands-Resources (JD-R) Model by Bakker & Demerouti (2008), which explains that adequate job resources can enhance employee engagement, which in turn increases motivation and leads to better performance. Work motivation thus serves as a crucial link between employee engagement and improved performance outcomes.
Previous studies support this conclusion. Saputra et al. (2024) demonstrated that work motivation significantly mediates the relationship between employee engagement and performance. Similarly, Suwarno et al. (2023) emphasized the important role of motivation in strengthening the positive effects of engagement on employee performance.
Therefore, this study confirms that employee engagement alone is not sufficient to guarantee optimal performance. Organizations must actively foster work motivation through managerial strategies such as recognizing employee contributions, assigning meaningful and challenging tasks, and cultivating a supportive and open work culture. These efforts will reinforce the relationship between engagement and performance, making work motivation the key driver for productivity improvement at CV Atlantis Jaya Pratama.
The Influence of Transactional Leadership on Employee Performance through Work Motivation Mediation. The results of hypothesis testing show that work motivation mediates the effect of transactional leadership on employee performance at CV Atlantis Jaya Pratama. This means that transactional leadership can enhance employee performance through increased work motivation. When transactional leaders provide clear guidance, rewards, and consistent supervision, employees feel more valued and secure, which boosts their internal motivation to perform better. Motivated employees tend to demonstrate higher commitment and productivity, resulting in improved performance.
Transactional leadership, as described by Bass (1990), is based on an exchange process where leaders offer rewards for accomplishments (Contingent Reward) and apply corrective measures when standards are not met (Management by Exception). At CV Atlantis Jaya Pratama, this leadership style is reflected through bonuses, incentives, and regular performance monitoring. Such practices create a structured environment where employees understand expectations and feel recognized, which strengthens their motivation to work effectively.
Although transactional leadership mainly relies on extrinsic motivation, which is effective in the short term, it may risk reducing intrinsic motivation over time if not balanced with more humanistic approaches. Therefore, it is important for organizations to complement transactional leadership with strategies that empower employees and support their personal growth and psychological well-being.
These findings align with previous studies, such as Adriansyah et al. (2020), which reported that transactional leadership significantly influences work motivation and performance both directly and indirectly. Similarly, Catherin et al. (2025) found that while the direct effect of transactional leadership on performance may not be significant, its indirect impact through work motivation is strong.
Thus, this study concludes that consistent and fair implementation of transactional leadership can improve employee motivation, which in turn enhances performance. To sustain this positive impact, organizations should adopt leadership approaches that combine material rewards with employee development and supportive work environments, fostering long-term motivation and productivity.
Based on the results of this study, it can be concluded that employee engagement has a positive and significant effect on employee performance, transactional leadership has a positive and significant effect on employee performance, employee engagement has a positive and significant effect on work motivation, transactional leadership has a positive and significant effect on work motivation, and work motivation has a positive and significant effect on employee performance. Furthermore, work motivation mediates the effect of employee engagement and transactional leadership on employee performance at CV Atlantis Jaya Pratama.
Theoretically, this study emphasizes the important role of employee engagement as a mediating variable in the relationship between transactional leadership, work motivation, and employee performance. This study found that transactional leadership does not have a significant direct effect on employee performance but contributes positively through improving work motivation. Additionally, employee engagement was proven to have a positive and significant effect on employee performance, indicating that psychological involvement and commitment in work can directly drive productivity. Furthermore, work motivation serves as the main link that strengthens the effect of transactional leadership and employee engagement on employee performance. Therefore, this study reinforces existing theories that employee performance improvement is influenced not only by leadership and engagement factors directly, but also through high levels of work motivation. These findings provide a relevant theoretical contribution to support a management approach based on work motivation as a key element in creating a productive organization.
Managerially, this study provides strategic guidance for the company to enhance employee autonomy, engagement, performance management, and motivation. The company needs to continuously foster a culture of independence by empowering employees to make decisions and take responsibility, supported through training that sharpens decision-making and problem-solving skills. Additionally, leveraging high employee engagement - manifested in task understanding, pride, and enthusiasm - can be achieved by offering opportunities for growth, active participation in projects, and recognition programs that boost motivation. Improving performance management by adopting more proactive and routine monitoring systems, alongside training managers to detect issues early, will help maintain optimal team performance. Finally, strengthening reward and recognition policies with both formal and informal appreciation, coupled with constructive feedback, will create a positive work environment that enhances motivation and encourages continuous performance improvement.
This study has several limitations, including the exclusion of other potentially influential variables such as employee personality, emotional intelligence, corporate culture, work-life balance policies, and workplace environment factors that could provide a more comprehensive understanding of employee performance and motivation. Additionally, the findings are limited in generalizability due to the sample being drawn solely from CV Atlantis Jaya Pratama, restricting applicability to other organizations or industries. Furthermore, reliance on self-reported data introduces the risk of response bias, as participants might provide socially desirable answers. Therefore, future research is recommended to include additional exogenous variables, adopt longitudinal designs to observe causal relationships over time, diversify samples across various sectors and organizational types to enhance generalizability, and employ more objective or mixed methods of measuring performance and motivation beyond self-report questionnaires.
Based on the research findings, it is recommended that the company pay more attention to time management by organizing training on effective time management and ensuring balanced workload distribution to help employees achieve their work quantity targets; improve workplace comfort and atmosphere by providing flexible working hours, comfortable rest areas, and activities that strengthen employee relationships so they can enjoy their work more and increase job satisfaction; develop a reward mechanism that focuses not only on final results but also on employees’ efforts and dedication through verbal or symbolic recognition to boost motivation and engagement; and set clear and realistic performance targets with regular evaluations and concrete feedback, as well as provide training that supports skill development to help employees achieve their targets optimally.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-06/article_02.pdf