The Role of Inspirational Motivation and Career Path on Employee Performance Through Job Loyalty as an Intervening Variable in the X Industry in Cileungsi District - West Java

Abstract

The increasingly dynamic business environment demands that companies increase their competitiveness through effective human resource management. Employee performance is a crucial factor in achieving organizational goals. In this context, companies need to understand the various factors that contribute to improving employee performance, including motivation from management, career path development, and employee loyalty. This study aims to analyze the influence of inspirational motivation and career path on employee performance, with job loyalty as an intervening variable in the furniture industry. This study used a quantitative approach with a survey method through the distribution of questionnaires to company employees. Data analysis was conducted using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS software. The results of the study indicate that career path has a positive effect on job loyalty, while inspirational motivation has a positive effect on employee performance. On the other hand, inspirational motivation has not been proven to influence job loyalty, career path has not been proven to directly influence employee performance, and job loyalty has not been proven to influence employee performance. Furthermore, job loyalty cannot act as an intervening variable in the relationship between inspirational motivation and employee performance or between career path and employee performance. This study concludes that improving employee performance is more effective through strengthening inspirational motivation provided by leaders, while career paths play a greater role in increasing employee loyalty, this is because career paths are already in a policy that certain periods will automatically increase. The research findings also show that work loyalty has not been able to be a mechanism that bridges the influence of motivation and career development on employee performance. Furthermore, companies need to strengthen inspirational leadership practices and develop a more focused career management system that is integrated with performance management to improve the effectiveness of human resource management.