<![CDATA[This study aims to examine the influence of transformational leadership on employee performance with affective commitment as a mediating variable among millennial employees working in Yogyakarta. The increasing presence of the millennial workforce presents new challenges for organizations, particularly in maintaining loyalty, emotional attachment, and performance consistency. A quantitative research approach was employed using purposive sampling, with data collected through an online questionnaire distributed via Google Forms. A total of 248 valid responses were obtained and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results reveal that transformational leadership has a positive and significant effect on employee performance. Furthermore, affective commitment fully mediates the relationship between transformational leadership and employee performance. The findings indicate that leaders who demonstrate transformational characteristics—such as inspirational motivation, intellectual stimulation, individualized consideration, and vision-oriented communication—can strengthen employees’ emotional attachment to their organization. This, in turn, enhances their motivation, engagement, and job performance. The study highlights the strategic importance of developing transformational leadership competencies among managers to foster affective commitment and improve performance, particularly within the millennial workforce. It also contributes to organizational behavior literature by confirming the mediating role of affective commitment in emerging economies.]]>
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