ABSTRACT The problem that arises in the savings and loan cooperative in Demak Regency is that employee performance has decreased. These results also show that there is a need for research to find out the factors that can influence the performance of savings and loan cooperative employees in Demak Regency. The aim of this research is to analyze the influence of competency and employee empowerment which can influence employee engagement and impact the performance of savings and loan cooperative employees in Demak Regency. The population used in this research were all employees from 17 savings and loan cooperatives in Demak Regency which had employees and allowed researchers to distribute questionnaires to their employees. Sample selection used purposive sampling. The sample used was 72 people from 17 Savings and Loans Cooperatives. The analytical tool used is a quantitative analysis method, namely structural equation modeling. Based on the research results, improving the performance of savings and credit cooperative employees in Demak Regency can be directly influenced by employee empowerment, competence and employee engagement. Employee engagement is also influenced by competence and employee empowerment. Keywords: employee performance, employee engagement, competency, employee empowerment.
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