The Role of Employee Value Proposition and Transformational Leadership in enhancing Employee Engagement (A Study on Generation Y)

Abstract

The objective of this research is to test the model of employee engagement using the variables of
employee value proposition (EVP) and transformational leadership. Many academic researchers and HR
practitioners understand that employee engagement has multiple, varied advantages, such as improving
employee performance, decreasing labour turn over, and increasing productivity. Therefore, enhancing
employee engagement is the focus of this research. A survey was completed by 253 employees in The
Institution of Macroprudential Supervisory Authority in Indonesia. All respondents are of Generation Y.
This research uses simple random sampling as a sampling design and uses Structural Equation Model (SEM)
Lisrel in quantitative method.Results indicate that there is new significant role of Transformational
Leadership in strengthening the influence Employee Value Proposition on Employee Engagement.
Therefore, more influenceon moderating Transformational Leadership in influencing EVP on employee
engagement should be pursued. In another result, tit was found that there is a significant influence of
Employee Value Proposition on Employee Engagement