Journal Research of Social Science, Economics, and Management
Vol. 5 No. 9 (2026): Journal Research of Social Science, Economics, and Management

The Effect of Digital Leadership Style, Compensation, and Employee Engagement on Employee Loyalty Through the Performance of Generation Z Employees at Sinar Mas Insurance

Herlita Sanawati Lingga (STIE Indonesia Banking School, Indonesia)
Fermico Karambut (STIE Indonesia Banking School, Indonesia)
Batara Maju Simatupang (STIE Indonesia Banking School, Indonesia)
Vidiyanna Rizal Putri (STIE Indonesia Banking School, Indonesia)



Article Info

Publish Date
13 Apr 2026

Abstract

This research aims to examine and analyze the direct influence of digital leadership style, compensation, and employee engagement on employee performance, as well as their influence on employee loyalty through performance as a mediating variable among Generation Z employees at PT Asuransi Sinar Mas. The research variables consist of Digital Leadership Style, Compensation, and Employee Engagement as independent variables, Employee Loyalty as the dependent variable, and Employee Performance as the mediating variable. The research method used is a quantitative descriptive approach with an explanatory design. Primary data were collected through questionnaires from 200 Generation Z employee respondents selected using a convenience sampling technique. The research stages include validity testing, reliability testing, classical assumption testing (multicollinearity, heteroscedasticity, and normality), and data analysis using path analysis with the SPSS program. The results of the study indicate that digital leadership style, compensation, and employee engagement simultaneously and partially have a positive and significant effect on employee performance. In addition, employee performance is empirically proven to play a significant role in linking the three independent variables to employee loyalty. Employee engagement was found to be the most dominant driver of loyalty. As managerial advice, companies should continue strengthening their digital leadership ecosystem and investing in psychological well-being programs to enhance employee retention. Furthermore, management is advised to implement an open recruitment system to remain competitive and transparent, mitigate the risk of young talent turnover, and optimize productivity to foster long-term loyalty.

Copyrights © 2026






Journal Info

Abbrev

jrssem

Publisher

Subject

Environmental Science

Description

The Journal Research of Social Science, Economics, and Management is a double-blind peer-reviewed academic journal and has open access to social and scientific fields. The journal is published monthly once by CV. Publikasi Indonesia. The Journal Research of Social Science, Economics, and Management ...