This study aims to analyze the effect of transformational leadership and employee competence on employee work engagement through self-efficacy as a mediating variable among employees of Institution X. This study used a quantitative approach with a survey method involving 127 employees selected through saturated sampling. Data were collected using a four-point Likert scale questionnaire and analyzed using SEM-PLS with the Hierarchical Component Model (HCM) approach. The results showed that transformational leadership and employee competence had a positive and significant effect on self-efficacy, but did not have a direct effect on work engagement. Self-efficacy had a positive and significant effect on work engagement and fully mediated the relationship between transformational leadership and employee competence on work engagement. These findings indicate that improving employee work engagement requires not only strengthening leadership and competence but also developing employees' self-efficacy. Therefore, organizations are encouraged to develop transformational leadership and employee competence while strengthening self-efficacy to optimize employee work engagement.
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