How does millennial employee job satisfaction affect performance?

Indrayani Indrayani (Universitas Batam, Batam, Indonesia)
Nurhatisyah Nurhatisyah (Universitas Batam, Batam, Indonesia)
Damsar Damsar (Universitas Andalas, Padang, Indonesia)
Chablullah Wibisono (Universitas Batam, Batam, Indonesia)

Higher Education, Skills and Work-Based Learning

ISSN: 2042-3896

Article publication date: 28 June 2023

Issue publication date: 1 February 2024

8979

Abstract

Purpose

This study aims to test and analyze the effect of continuous commitment, task complexity, competence and personal value on employee performance millennial intervening job satisfaction.

Design/methodology/approach

This research method is quantitative with a sequential explanatory design, then data collection through a questionnaire, with a sample of 205 respondents—data analysis using Structural Equation Model (SEM) with the software Linear Structural Relationship (LISREL).

Findings

The results of research on the performance of millennial employees with intervening work satisfaction showed that continuous commitment (2.49), task complexity (2.74) and professional competence (2.0) had a significant effect. This means that the performance of millennial employees will increase if they get job satisfaction. With satisfaction, the commitment and competence of millennial employees are high. While the research results for the performance of millennial employees have a direct influence, only professional competence (2.27) and task complexity (4.06) are significant. This means that as high as professional competence is characterized by intellectual, emotional mood and attitude, owned by millennial employees, the resulting performance is increased even with complex tasks.

Research limitations/implications

The findings of this study have significance for enhancing organizational performance so that businesses can maximize the performance of millennial employees by paying attention to job satisfaction, professional competence and personal values.

Originality/value

This research's contribution to millennial workers is to help them improve and develop their performance, allowing them to compete more effectively. The findings of this study have significance for enhancing organizational performance so that businesses can maximize the performance of millennial employees by paying attention to job satisfaction, professional competence and personal values.

Keywords

Citation

Indrayani, I., Nurhatisyah, N., Damsar, D. and Wibisono, C. (2024), "How does millennial employee job satisfaction affect performance?", Higher Education, Skills and Work-Based Learning, Vol. 14 No. 1, pp. 22-40. https://doi.org/10.1108/HESWBL-01-2023-0004

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Indrayani Indrayani, Nurhatisyah Nurhatisyah, Damsar Damsar and Chablullah Wibisono

License

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode


Introduction

Companies that want to succeed and maintain their position in the market need to carry out strategic planning, optimization and resources (Bashkirova et al., 2023). Employee performance plays an important factor in determining company performance. Human resources are an important source of growth for organizations (Morin et al., 2023). To best utilize human resources, align employees' knowledge, skills and abilities with their assigned organizational roles (Farooqui and Nagendra, 2014). Nielsen and Montemari (2012) state that with intellectual capital, organizations will be able to improve their performance; as a result, humans are the most important resource enabling organizations to improve financial/non-financial performance (Nordenmark et al., 2023). Humans as employees are an important resource for every organization, and adequate HR management can help organizations achieve their goals and objectives (Abdul-Halim et al., 2016). Millennials who are employees in various organizations have a significant and strategic position. According to Ranaweera and Dharmasiri (2016), research on the millennial generation's performance has not been studied much.

Employee performance among millennials is characterized by hard work, lack of commitment and low loyalty (Auer Antoncic and Antoncic, 2011). Millennial workers must feel valued for them to contemplate staying with the organization. In addition to worrying about workplace bullying, millennial employees also worry about bureaucracy, hierarchy and the environment. Employees born between 1983 and 1994 and in the millennial generation range in age from 24 to 39 years (Sarwono and Bernarto, 2020). According to research findings (Goetzel et al., 2018) 62% of 1000 employees polled stated they would feel more at ease if a company leader discussed mental health and showed concern for the issue. Only 26% of respondents to a survey believe that workplace policies to address mental health issues have been adopted. The challenge for millennial company employees is to follow the company's hierarchy. According to research results, as many as 43% of millennial employees like to work hard, while 57% do not like hierarchy. Millennial employees like a comfortable and pleasant work environment to increase productivity (Ruangkanjanases and Chen, 2019).

This study aims to test and analyze the influence of continuous commitment, task complexity, professional competence and personal value on the performance of millennial employees through intervening job satisfaction. Continuity commitment is the individual's desire to survive and leave the company hard (Al-Jabari and Ghazzawi, 2019). It is based on a person's concern about losing something obtained so far within the organization, such as salary, facilities and others (Nurhatisyah et al., 2020). It is defined as the desire to remain a member of the organization because of awareness of the costs associated with leaving it. Indicators to measure continuance commitment include finding it difficult to leave, feeling disturbed when they leave, continuing to work for the company and the scarcity of alternative workplaces available (Mehmood et al., 2023). Besides, task complexity is a task that needs to be more structured, easier to understand and ambiguous (Riyanto et al., 2023). This affects performance because of the amount of information and stages of work that must be done. The four indicators of task complexity are difficulty level, information clarity, amount of irrelevant information and high ambiguity (Jurij et al., 2023). In IT, the relevance of task complexity can be illustrated in the context of the System Development Life Cycle (SDLC) (Morin et al., 2023). Two aspects can form task difficulty: the difficulty level and task structure (Shah et al., 2023).

On the other hand, competence means a person's ability or capacity to perform various tasks in a job, determined by intellectual ability and physical ability (Myers and Sadaghiani, 2010). Knowledge, abilities, self-concept, motives and traits can measure this. Professional competence is the ability or capacity of a person to carry out various tasks in a job and is related to the effectiveness of individual performance (Myers and Sadaghiani, 2010). Personal values also influence a person's competence. Personal values are individual concepts and beliefs that originate from cognitive structures and are closely related to affective or guided behavior (Han et al., 2023). Individuals hold relatively stable sets of universal values to evaluate objects, events, others, and themselves and to choose and justify their actions. According to the Five Factor Theory (FFT), values are basic endogenous tendencies not influenced by the environment (Saputra et al., 2016). There are five definitions of values: beliefs, goals to be achieved, standards, criteria and a hierarchy based on the importance scale (Ruangkanjanases and Chen, 2019).

Continuous commitment, task complexity, professional competence and personal values are one unit that is interrelated with one another, which function to see employee performance. This study analyzes millennial performance as measured through intervening job satisfaction can affect continuous commitment, task complexity, professional competence and personal values. Millennial performance, according to Luthan, is the quantity or quality of something produced or services provided by individuals who do the work (Soelton et al., 2021). The factors that influence performance are personal factors, indicated by skill level, competency, motivation and individual commitment (Junaidi and Mildawati, 2022; Riwukore et al., 2022). Meanwhile, three factors influence performance (Arifin et al., 2019; Hidayat et al., 2018); a) individual factors, including abilities, skills, family background, work experience, social level and demographics of a person; b) psychological factors, including perceptions, roles, attitudes, personality, motivation and job satisfaction; c) organizational factors, including organizational structure, job design, leadership and reward systems. Job satisfaction is a positive feeling about one's job that results from evaluating its characteristics. This is influenced by individual, social and major factors in work, such as wages, supervision, job security and opportunities for advancement. Job satisfaction is an emotional condition that leads to a person's positive attitude in assessing problems and everything encountered in the work environment (Farooqui and Nagendra, 2014).

Practically Human Resources (HR) has always been the main point in the company. Based on several previous studies, performance has a relationship with job satisfaction. Yang and Hwang found that job satisfaction and performance affect each other positively and reciprocally (Sarwono and Bernarto, 2020). Meanwhile Valaei and Rezaei (2016) stated that there is a relationship between job satisfaction and performance and organizational commitment. Job satisfaction is among the most important factors in HR development that leads to greater organizational efficiency. Furthermore Javed et al. (2014) claim that aspects of job satisfaction vary by country and change over time. However, studying job satisfaction across cultures and over time is important.

Due to the weak employee performance on company performance, practically Human Resources (HR) is always the main point. Many technological developments overcome the deficiencies that exist in humans (Renyut et al., 2017). Many sides cannot be replaced by machines or digital technology. Technology is used only to help with work. In this case, millennial employees do not doubt their abilities (Fantahun et al., 2023). However, Internet Service Provider (ISP) companies, as a company engaged in the field of Internet connection service companies also really need employees who are highly committed, hardworking, competent, personal value, energetic, productive, innovative and full of commitment, as well as solid teamwork to achieve the target level of work planned by the company (Nurhatisyah et al., 2020).

Based on the results of interviews and focus groups with human resource development (HRD) ISP businesses in Batam City, Riau Islands Province, it was discovered that millennial employee performance was seen as best with individuals who are quick to learn, adaptable to technology, enthusiastic and highly curious, and have creative and innovative ideas (Peramesti and Kusmana, 2018). Millennial workers, however, could be more devoted to their employers, which leads to frequent job switching. Low loyalty indicates a weak company commitment, according to Mohsen (2016). Employees' commitment to the organization is reflected in their mentality of performance loyalty (Warrick, 2017).

The gap exists in Batam City-based ISP businesses, where millennials comprise more than 84.8% of the workforce (Nurhatisyah et al., 2020). As a result, the ISP company deals with employees from the millennial age, which currently dominates the workplace and is known for being disloyal or having low company loyalty. As a result, employee turnover is a common occurrence. The following information on turnover for ISP businesses in Batam City is shown in Figure 1:

As indicated in Figure 1, Inc. Media Nusa Permana, Inc.Solnet Indonesia, and Inc. Link Net TBk are the three ISP firms with the greatest annual turnover rates. This demonstrates that a poor level of ongoing employee engagement and loyalty is reflected in the employee turnover rate (Khajuria and Khan, 2022). One of the factors that ISP firms in Batam must take into account is the high turnover rate. High turnover rates will have a detrimental effect on a company's ability to perform.

Along with the development of digital technology and the Internet, which is increasingly advanced, it will affect “continued commitment, task competence, professional competence and personal value,” this will affect job satisfaction and the resulting performance (Valaei and Rezaei, 2016). Human resources have always been the main point in the company (Nurhatisyah et al., 2020). Based on several previous studies, Yang and Hwang (2014) found that job satisfaction and performance have a positive impact. Meanwhile, Valaei and Rezaei (Valaei and Rezaei, 2016) stated that there is a relationship between job satisfaction, performance and organizational commitment.

According to a preliminary study based on interviews with several HRDs from ISP companies in Batam, it was discovered that “Millennial” workers performed quite optimally with personal characteristics such as being quick learners, technology-adaptive, high enthusiasm and curiosity, and had creative and innovative ideas, but on average, have low loyalty, resulting in low organizational commitment (Farhan, 2021). The degree of millennial workers' personality and social standing is sufficient to impact moral principles (Catano and Morrow Hines, 2016). Because millennials are highly competent and enthusiastic, business leaders tend to offer them challenging responsibilities. This harms employee job satisfaction and leads to less-than-ideal performance outcomes (Farhan, 2021).

Empirically, according to several earlier studies, performance and job happiness are related. Every business aims to engage staff in organizational and business activities to boost output. In the form of maximum job productivity to achieve the predetermined goals (Sarwono and Bernarto, 2020). Company management must take note of the employee's commitment to their jobs if they want to attain high production (Masoudinejad and Veitch, 2023). Being loyal is a mental attitude that can motivate someone to be able to control themselves and work harder, faster and better. A positive work environment will impact productivity and effectiveness.

Companies providing Internet connection services, or ISPs, have a clear need for personnel that is dedicated, persistent, hard-working, competent and personable (Alassaf et al., 2023). Employees must also be motivated, productive and creative to meet business objectives (Hidayat et al., 2018). The study's findings are anticipated to shed light on how millennial workers perform in ISP companies in Batam City when task complexity, continuous commitment, professional competence and personal value intervening in job satisfaction are considered. This will allow businesses to modify work practices to better suit millennial characteristics and help workers meet performance goals.

The originality of this study relates to how millennial employees perform under the influence of constant attention due to the negative stereotypes around their personalities. According to previous studies on a commitment to this generation, millennials need a sense of belonging to the organization (Morin et al., 2023; Nordenmark et al., 2023). Furthermore, millennials prioritize self-improvement more and more mobile, making it simpler to move than stay in an organization (Ismail, 2016). According to the findings of research published in reputable international journals (Alassaf et al., 2023; Mayr and Teller, 2023; Nemțeanu and Dabija, 2023; Shin and Kwon, 2023; Thielmann et al., 2023), the follow-up commitment variable is still unutilized in terms of information, updated theory, incompleteness (not related to a comprehensive theory) and from a predefined locus perspective in cases where the research subject is millennial employees.

The ISP company that serves as the subject of this study's locus delicacy is in desperate need of millennial workers who can adapt to new technology, are intelligent, inventive, and creative, have a strong work ethic, and are committed to the organization's vision, mission and goals (Menti et al., 2023). This study aimed to examine the issue from a different perspective by creating the continuance commitment, which has been used as an indicator for millennial workers at ISP companies in Batam. This exogenous or independent variable will directly affect the performance of strategic employees or have an impact through an intervention variable based on job satisfaction (Shin and Kwon, 2023). Based on the background of the previously described problems, the research problem formulation is How does Millennial Employee Job Satisfaction Affect Performance?

Although the context of the difficulties offered provides a relatively broad perspective of the problem's dimensions, the challenges are presented clearly and focused on this research's limitations; First, this research focuses on a single exogenous variable—job satisfaction—as an intermediate between the endogenous variable—millennial employee performance—and the four exogenous variables—continuous commitment, complexity of work, professional competence and personal values. The second focus of this study is the ISPs operating as Incorporated Companies in Batam City. This study uses a quantitative method with a sequential explanatory design, and each variable is described in the form of a questionnaire that is distributed to millennial ISP employees with a simple random sampling method; the collected data is processed using a Structural Equation Model (SEM) using a Linear Structural Relationship (LISREL) software. The use of descriptive and verifiable analysis to explain the relationship between the variables studied by verifying the accuracy of the data in the study to produce a structured picture of the research, the framework of the research concept is as follows:

Figure 2 shows the research framework of the research concept, a hypothesis of each variable and the relationship between variables can be made in Table 1 as follows:

Methods

The problem of millennial employee performance in the industrial revolution era was the main variable in this study, mediated by job satisfaction. It was associated with the variables continuity commitment, task complexity, professional competence and personal values as the variables of the subject in this study. Six variables are examined in this study, and both their direct and indirect impacts are observed. This quantitative research method is a process of finding knowledge using numbers to analyze information about what you want to know (Nardi, 2018). Data collection of this study using the causal model survey method with path analysis techniques (path analysis) (Vowels et al., 2022).

The millennial respondent employees were given questionnaires to complete the data. Two hundred-five responders resulted in the collection of data. All 422 respondents were millennial workers at Batam City ISP organizations aged 19 to 40. Millennial employees working at ISP companies in Batam city with employees between 19 and 40 were chosen as respondents for the exogenous questionnaire. In contrast, leaders or HRD completed the endogenous questionnaire. The study on job satisfaction of millennial employees in Batam City was approved by the respondents and according to the ethical approval standards of the Institutional Review Board (IRB), ensuring that this research complies with ethical guidelines for research involving human subjects and relevant laws and regulations. This research was conducted from January to May 2022. ISP companies registered with the ISPs Association and which responded to research request letters are distinguished in Table 2 as the companies where the research was conducted.

This study used a sample from a population of ISP companies in Batam by employing a questionnaire as the primary data collector for research on this population or sample. The Slovin method was used for sampling, and a research instrument was used for data collecting (Bloomfield and Fisher, 2019). The population and sampling were obtained by employing questionnaires to evaluate personal value variables, professional competence, work complexity, ongoing commitment, job satisfaction, and performance using validity and reliability test data. Given the size of the population, the Slovin formula is used to get the sample size as follows (Sürücü and Maslakçi, 2020):

n=N/(1+Ne2)=422/(1+422.0.52)=205

Techniques for gathering data involve questionnaires, including hard and soft questions. A closed-statement instrument was used to measure the variables, and they were graded on a Likert scale from 1 to 5 (Haas and Hadjar, 2020). Each remark was followed by a question asking respondents to rank their agreement or disagreement with it. The validity and reliability of the instrument were assessed before it was utilized to collect research data from 30 millennial ISP staff respondents who had participated in trial runs but were no longer used as research participants. The reliability test calculation employs the Cronbach alpha instrument (Sürücü and Maslakçi, 2020). In contrast, the validity test calculation uses the product-moment correlation because the item scale is a scale of five, similar to the Likert model scale.

Empirical review is used in theoretical analysis. In an earlier study, the Structural Equation Model (SEM) approach was used for data analysis and theoretical mapping, and LISREL was used for descriptive analysis. The measurement model (outer model) and the structural model are utilized for SEM-LISREL analysis (inner model) (Zhang, 2022). The verification analysis carried out in this study aims to determine the relationship between the independent variables of commitment, task complexity, competence, and personal value through job satisfaction and the dependent variable of millennial employee performance, which will be tested using hypothesis analysis (Sutija, 2017).

Result

This study analyzes Influence, Continuous Commitment, Task Complexity, Professional Competence, and Personal Values, With Job Satisfaction as an Intervening (intermediary/mediation variable) and Their Impact on the Performance of Millennial Employees of (ISP) Companies in Batam City. The study results were obtained from processing questionnaire data with a population of respondents. This research study was millennial employees of ISP companies in Batam City with a total population of 422 respondents. According to Sugiyono (2017) considering that the population is very large, the Slovin formula is used to calculate the sample size as follows: n = N/(1 + Ne2) = 422/(1 + 422.0.52) = 205, with the graph of respondents as follows:

From the response chart of respondents in Figure 3, millennial employees of ISP First Media company filled out 43 questionnaires, 21% of the total sample, and the least was Biznet company, as much as 2.4%, five questionnaires from the whole sample. This study used probability sampling because sampling provided equal opportunities for ISP companies in Batam City. Random sampling sample technique: Questionnaires are distributed randomly to millennial ISP employees for their independent questionnaires, and dependent questionnaires are given to HRD/employee leaders who fill out separate variable questionnaires.

The results of the analysis of SEM data with LISREL Software show the match of the model with the results of the Goodness Of Fit (GOF) test Figure 3, where the previous model had passed the confirmatory factor analysis test; this measurement ensured that there were no offending estimates (values that exceed the acceptable limit) according to the reference GOF tests together a model consisting of independent variables and dependent variables, here are the results of GOF tests:

From the results of the GOF test on Figure 4, it can be seen that the T-statistic > from T-table 0.9 shows a good fit level of match, where the Normed Fit Index (NFI) value in this model is 0.98. This value is above the fit criteria. The NFI value ≥ 0.90, meaning that the model match is good because the NFI value is above the good fit criteria (Fowler and Lapp, 2019). For the Non-Normed Fit Index (NNFI) value in this model of 1.00, this value is above the NNFI fit criteria ≥0.90, then NNFI has a reasonable model match rate because the NNFI value is above the good fit criterion (King et al., 2021). The Parsimony Normed Fit Index (PNFI) value of 0.91 is above the fit criteria that should be PNFI ≥0.90, so the model match is a good fit. Furthermore, in the Comparative Fit Index (CFI) criteria, the output fit shows a CFI value of 1,000, indicating a perfect model match because the CFI meets the requirements, namely the CFI ≥0.90.

An Incremental Fit Index (IFI) value of 1.00 meets the fit criteria because the matter is above the minimum IFI ≥0.90 (Faems, 2020). A Relative Fit Index (RFI) value of 0.98 shows the model's fit is perfect because the RFI value ≥ 0.90; this value is a good fit. The Goodness-of-Fit Indices (GFI) value is 0.8. This value is below the excellent fit standard, but still within the marginal fit limit; for the Adjusted Goodness of Fit (AGFI) value of 0.96 ≥ 0.90, this value is a good fit. From the output results of the GOF Test, it can be concluded that the structural model in this study can be declared fit. After testing the overall suitability of the model, the next stage is to test the hypothesis with the following results in Figure 5:

From the path diagram of Figure 5, the results of model testing show that the relationship between exogenous and endogenous variables has a t-value with a number in black and red, which means that if the war is black, the t-value value ≥ 1.96 so that it shows that the relationship between exogenous and endogenous variables is directly significant. While the red one, because the T- value < 1.96, this means that it offers its connection instantly insignificant. The results of testing this statistical hypothesis are as follows:

Based on Figure 6 show the results of the hypothesis testing of a direct relationship to job satisfaction (KSK) with the influence of exogenous variables (continuous commitment (KoK), task complexity (KoT), professional competence (KoP), personal value (PeV), job satisfaction was obtained R square 0.62, means that there is the model fit Then the results of the millennial employee performance test (KPM) on endogenous variables (performance) and the relationship between variables with exogenous influences (continuous commitment (KoK), task complexity (KoT), professional competence (KoP), personal value (PeV) obtained R square 0.61 this also shows a suitable model. According to Alassaf et al. (2023) the R-Square value is categorized as strong if more than 0.67, moderate if more than 0.33 but lower than 0.67, and weak if more than 0.19 but lower than 0.33. The path coefficient value of the effect of continuous commitment (KoK) on the performance of millennial employees (KPM) of 0.10 is insignificant at t-statistics 1.36 < of the t-table standard of 1.96. The path coefficient value of the effect of continuous commitment (KoK) on job satisfaction (KsK) was 0.26 significant at t-statistics 1.363 < t-table 1.96. The path coefficient value with intervening job satisfaction to continuous commitment in influencing the performance of ISP millennial employees in Batam city (KoK*KSK→KPM) of 0.10 is significant at t-statistics 2.74 > t-table 0.96.

Discussion

The research results on the first hypothesis (H1): Continuous commitment to the performance of ISP millennial employees in Batam City has no significant effect. This is under the characteristics of millennial employees who are not loyal (Pella, 2016). The measurement of the first indicator states that the loss of leaving the company states that millennial employees in the ISP company feel that problems that occur in the company do not become employee problems if there are obstacles in realizing the company's vision and mission such as lack of the achievement of the company's sales target, or the overload of costs of various divisions, millennial employees think this is not an employee problem that must also be found a solution.

Employees who do not have a high continuous commitment will change careers in other companies, and this is in line with the theory (Gin Choi et al., 2013), which states that, this millennial generation is very hopeful and looking for the meaning of work to the work they do, the average millennial generation will change up to twenty times during their lifetime. Millennials are not loyal to the company; instead, they were dedicated to their friends. An attitudinal or affective approach, which emphasizes the significance of alignment between millennial employees' values and goals and the company's values and objectives, differs theory of the relationship between organizational commitment and performance (Al-Jabari and Ghazzawi, 2019; Botella-Carrubi et al., 2021; Khajuria and Khan, 2022).

Companies must be able to convince millennial employees that their personal goals are the same as the company's goals; this will be the higher the continuous commitment of millennial employees (Saputra et al., 2016). The direct effect of continuous commitment on job satisfaction is significant, meaning that millennial employees will feel at a loss leaving the company because the company has got the desired things according to the indicators of job satisfaction, satisfaction with the work produced, satisfaction with rewards, satisfaction with superior supervision, satisfaction with colleagues and have the opportunity to be promoted to a position if it makes a good performance (Ruangkanjanases and Chen, 2019).

This follows millennial employees' characteristics, in line with research (Dwiyanti and Bagia, 2020). With high commitment, employees will have high job satisfaction. Millennial employees with increased responsibility have a responsible attitude to work in the company, obeying the company's work standards (Sutama and Stiven, 2010). Job satisfaction has a close relationship that is intertwined, so job satisfaction as an intervening variable of continuous commitment to the performance of millennial employees at ISPs has a significant effect (Al-Jabari and Ghazzawi, 2019). Staying afloat is a measure of the constant burden of millennial employees to remain in the company. It illustrates the confidence of millennial employees in the company's vision and mission, wanting to advance the company and the intensity of millennial employees deciding to stay at work. This is emphasized by Auer Antoncic's (2011) commitment, and employee loyalty makes the company grow.

The path coefficient value of the effect of task complexity (KoT) on the performance of millennial employees (KPM) was 0.36 significant at t-statistics 4.06 > t-table 1.96. The path coefficient value of the effect of task complexity (KoT) on job satisfaction (KsK) was 0.38 significant at t-statistic 4.63 > t-table 1.96. The path coefficient value with intervening job satisfaction to the complexity of tasks in influencing the performance of ISP millennial employees in Batam city (KoT *KSK → KPM) was 0.07 significant at t-statistic 2.49 > t-table 1.96. Job satisfaction can moderate task complexity's influence on mental employees' performance at ISP in Batam city.

The complexity of the task on the performance of millennial employees in the ISP Company in Batam City has a significant effect. The responsibilities of millennial workers at ISPs are comparatively complex. Nonetheless, the organization has offered training to clarify what degree of comprehension and how the activity is organized. This raises the level of expertise among millennial workers at ISPs. Nonetheless, the complexity of millennial employees' tasks at ISP firms is substantial. However, the fact that they work as a team to fulfill their duties as ISPs ensures that their performance is still at its best and steadily improving. Contrary to Sanusi and Iskandar's findings Mohd-Sanusi and Mohd-Iskandar (2007) and Rudyanto (2016) Indicate that difficult activities might have a negative impact on employee performance. However, high degrees of difficulty and variety in assignments have been shown to impact employee performance negatively, according to Rudyanto Research (Rudyanto, 2016).

Millennial workers can work well with work orders that are structured, have operational work standards, and are given rewards and attention from superiors, thus the complexity of the task on job satisfaction, either directly or as an intervening factor, has a big impact on this (Javed et al., 2014). Allowing millennial employees to create on their own can automatically increase work satisfaction, and satisfied millennial employees are more likely to perform well and have strong loyalty to the organization. A successful business must guarantee a positive working environment for its employees (Siagian, 2022).

Employee job satisfaction will suffer if superiors treat them unfairly regarding job assignments, promotions, wages and evaluation reports compared to other coworkers (Putri, 2020; Warella et al., 2021). According to a different study, performance and employee happiness are strongly correlated (Chrisdianto et al., 2021). ISP organizations must ensure that all evaluations are conducted fairly to avoid millennial employees developing a negative impression of the business. The company's millennial employees can assess the quality of their work and choose whether the working environment meets their standards.

The influence of professional competence (KoP) on millennial employees' performance (KPM) had a path coefficient value of 0.17, which was significant at t-statistics 2.27 > t-table 1.96. The performance of ISP millennial employees in Batam City was influenced by the path coefficient value with intervening job satisfaction and professional competence (KoP *KSK KPM), which was 0.05 significant at a t-statistic of 2.00 > t-table 1.96. Professional competence's impact on the performance of mental personnel at ISP Batam City might be moderated by job satisfaction. The relationship between professional competence (KoP) and work satisfaction (KsK) among millennial employees has a path coefficient value of 0.18, significant at t-statistics 2.46 > t-table 1.96.

Professional competence has a significant effect on the performance of millennial employees and a substantial impact on job satisfaction. Implementing millennial employees also has a considerable effect when intervened by job satisfaction. The test results indicate that the higher the level of professional competence of millennial employees of ISP companies in Batam City, the higher their performance. The professional competence of millennial employees can be shown by the intellectual, emotional and social indicators possessed by the Batam City ISP employees. Academic competence is seen from knowledge and skills in the fields of information technology, Internet networks, and coding, as well as experience as an IT, while emotional competence is how a millennial employee is confident, can adapt well, obeys regulations and is consistent in carrying out duties as an employee of an ISP company.

Competency indicators other than skills and knowledge are social competencies. The social competence possessed by millennial employees in ISP companies is shown by the ability to communicate well and work with (teamwork, ready to help colleagues who need help completing work). This research supports research (Renyut et al., 2017; Suhardi, 2018) which states that competence significantly affects employee performance. In line with research by Laura book (2019), social values in the characteristics of the millennial generation are considered to support teamwork behavior in organizations. Efforts to achieve specific work targets and overall organizational performance certainly require teamwork.

This necessity of cooperation seems contradictory when considering the value of focusing on the personal. However, research (Myers and Sadaghiani, 2010) explains that the millennial generation shows good group cooperation abilities because cooperation at work is another form of fun social activity for millennials. They are proving a positive relationship between job satisfaction and job performance. Job satisfaction is also closely related to the performance of millennial employees.

The path coefficient personal value (PeV) value to the performance of millennial employees (KPM) of 0.094 was insignificant at t-statistic −0.54 < t-table 1.96. The path coefficient unique value (PeV) value to job satisfaction (KsK) of millennial employees of 0.11 was negligible at t-statistics 1.86 < t-table 1.96, insignificant because T-statistics were smaller than T-tables. The path coefficient value with intervening job satisfaction with personal value in influencing the performance of ISP millennial employees in Batam City (PeV *KSK → KPM) of 0.03 is insignificant at t-statistics 1.62 < t-table 1.96. The personal value variable has no significant effect on job satisfaction and is not substantial on performance through intervening job satisfaction of millennial staff in the ISP environment.

This indicates that the variables of personal value beliefs have two dimensions, including terminal values and instrumental values, with indicators of power, achievement, hedonism, stimulation, soft direction, equality, loyalty, tradition, consistency and stability having little impact on the performance of millennial employees in the ISP company environment in Batam City. This study's results depend on and contradict those of previous research; it was discovered that personal value variables affect employee performance (Gery et al., 2015). Meanwhile, in this study, personal values did not affect employee performance. Contrary to Grace Research (2017), employees' personality dimension significantly affects employee performance and job satisfaction and identifies very important for every organization. If employees are satisfied with their work, the entire organization's performance will be affected because employees are the main driver for any organization.

The effect of job satisfaction on the performance of millennial employees shows the path coefficient value of the impact of job satisfaction (KsK) on the performance of millennial employees (KPM) of 0.28 significantly at t-statistics 3.39 > t-table 1.96. There is a significant influence between job satisfaction and the implementation of millennial employees. Job satisfaction substantially affects the performance of ISP millennial employees in Batam City. Job satisfaction is measured by five indicators: rewards, superior supervision, satisfaction with colleagues and promotion opportunities. The significant effect of job satisfaction on the performance of millennial employees of ISP Batam City. This means that performance will be excellent if given rewards, supervision and appreciation by superiors for their performance so that millennial employees become satisfied with the like.

The study's findings also demonstrated that coworker satisfaction and advancement measures influence performance elements. As a result, millennial workers will perform at their highest level, act responsibly, satisfy online customers and encounter few complaints about their work. According to a study (Sutama and Stiven, 2010), a high level of job satisfaction will also impact employee performance. Our outcome is consistent with that research. A study's findings (Saputra et al., 2016) indicate that a worker's performance would improve if their sense of dignity grows. This is consistent with studies (Javed et al., 2014) that show a connection between job happiness and employee performance.

Millennial employee performance is influenced by continuous commitment, task complexity, professional competence and personal values 61%. The remaining 39% is influenced by other variables not studied in this study. While the influence of continuous commitment variables, task complexity, professional competence and personal values on millennial employee job satisfaction with an R-square value of 62% means that millennial employee job satisfaction variables are influenced by continuous commitment variables, task complexity, professional competence and personal values of 62%, the remaining 38% is influenced by other variables not examined.

The findings in this study show that the variable of continuous commitment only affects the performance of millennial employees if through intervening job satisfaction. Variables of task complexity and professional competence have a significant effect on the performance of millennial employees directly or intervening by job satisfaction. The variable of job satisfaction directly also has a significant effect on performance, for the personal value variable does not affect the performance of millennial employees either directly or by intervening job satisfaction. Millennial employees who are competent, get job satisfaction with work, against rewards, for superior supervision, promotion of positions and colleagues will be loyal to the company. This confirms that the performance of millennial employees at ISPs likes to work in a team work, a pleasant atmosphere and get a high salary in accordance with their professional competence as an IT.

According to the analysis of this study's findings, firms, especially those that employ many millennials, should optimize their human resources to improve their overall performance. Paying attention to the variable work happiness is one of the recommended tactics businesses can use to maximize the performance of millennial employees. This is because satisfied employees will perform better, stay with the company longer, be more likely to be supervised by superiors and coworkers and receive promotions. After all, their satisfaction has been met. This has important ramifications for committing totally to the business.

In addition, millennial employees need to increase their professional competence. By increasing competence, millennial employees will be okay with complex assignments as long as the work assignments are under their competencies and are well structured. The performance of millennial employees at ISP companies in Batam is not too concerned with personality or personal matters, so this does not affect the performance of millennial employees. The other things that are needed and affect the performance of millennial employees are colleagues. This is because millennial employees tend to work with solid teamwork. ISP companies have employees dominated by the millennial generation, so companies need to develop a management model that is responsive to the characteristics of millennial employees.

Companies are expected to be able to select highly committed employees through a good recruitment process by including the commitment variable in the selection instrument. In addition, it is necessary to develop programs that are expected to increase the performance of employees who are low to high so that they can support the company's performance as a whole. Companies also need periodic surveys of job satisfaction, as the results of this study prove that job satisfaction greatly influences the performance of millennial employees. The more satisfied millennial employees are, the better continuous commitment will be generated. Companies also need to pay close attention to employee characteristics in terms of age and developing values, especially for the millennial generation, which is increasingly dominant in many companies in the population.

Conclusion

According to the study, the continuous commitment variable does not directly affect performance. However, it does affect job satisfaction, which in turn affects the performance of millennial employees of ISP companies in Batam City. The complexity of activities and professional competencies affects millennial ISP employees' performance and job satisfaction directly or indirectly. Intervening work satisfaction can moderate exogenous variables vs endogenous variables. Testing the structure model of the direct influence of continuous commitment, task complexity, professional competence and personal value variables on millennial employees' performance with an R-square value of 61%. The remaining 39% was influenced by other variables not studied in this study, and job satisfaction with an R-square value of 62%, the remaining 38%. The structure model is suitable.

According to this report, organizations with numerous millennial employees should optimize their human resources to boost performance. To enhance millennial employee performance, firms should consider work pleasure. Millennial employees must also improve their professional skills and create a management model that fits their needs. Businesses should also improve low-performing employees' performance and measure job satisfaction. Thirdly, organizations should focus on employee age and values.

This research is expected to be of great use in increasing researchers' knowledge in their work, broadening their horizons and developing their knowledge under the disciplines obtained in Human Resource Management, particularly in organizational behavior. Researchers can investigate how business culture and leadership impact millennial employees' job satisfaction and performance through Longitudinal Studies, Multi-dimensional Measures and Cross-Cultural Studies.

Employees' opinions of the work environment and how well they fit into the organization are shaped by organizational culture, understood as shared values, beliefs and norms. Leadership concepts such as transformational or servant leadership can impact employee work satisfaction, which can affect performance. Studying how organizational culture and leadership affect millennials' job happiness and performance can help businesses develop a supportive work environment and successful leadership techniques. In addition, the contribution of this research to millennial employees is to assist them in enhancing and developing their performance while enhancing their competitiveness. Improving the performance of ISP companies in the city of Batam through the management of millennial workers.

Figures

ISP millennial employee turnover intention in Batam city in 2017–2021

Figure 1

ISP millennial employee turnover intention in Batam city in 2017–2021

Research Framework

Figure 2

Research Framework

Presentation Grafict respondents

Figure 3

Presentation Grafict respondents

GOF model matchability test results

Figure 4

GOF model matchability test results

Hypothesis test results

Figure 5

Hypothesis test results

Statistical hypothesis testing results

Figure 6

Statistical hypothesis testing results

Relationships between variables and indicators

VariableIndicatorsHypothesis
The commitment continues (Kok)Losses leave the company, and losses remain in the companyH1(P5). Continuous commitment affects the performance of millennial employees
H6(P1). Continuous commitment affects the job satisfaction of millennial employees
H10(P1, P7). Continuous commitment affects the performance of millennial employees through job satisfaction
Task Complexity (KoT)The difficulty of the task and the receipt of the jobH2 (P6). The complexity of tasks affects the performance of millennial employees
H7(P2). The complexity of the task affects the job satisfaction of millennial employees
H11(P2,P7). The complexity of tasks affects the performance of millennial employees through job satisfaction
Professional competence (KoP)Intellectual (skill, knowledge), Emotional, SocialH3 (P8). Professional competence affects the performance of millennial employees
H8 (P3). Professional competence affects the job satisfaction of millennial employees
H12 (P3, P7). Professional competence affects the performance of millennial employees through job satisfaction
Personal Value (PeV)Power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, tradition, conformity, securityH4 (P9). The personal value affects the performance of millennial employees
H9 (P4). The personal value affects the job satisfaction of millennial employees
H13 (P4, P7). The personal value affects the performance of millennial employees through job satisfaction
Job Satisfaction (KSK)Satisfaction with work, rewards, supervision of superiors, workload, promotion opportunitiesH5 (P7). Job satisfaction affects the performance of millennial employees

Note(s): Table by authors

Research sample

NoIncorporated companies (Inc.)Millennial employees
1Inc. Informasi Nusantara Teknologi22
2Inc Batam Bintan Telekomunikasi (BBT)17
3Inc. Media Nusa Permana45
4Inc. Solnet Indonesia73
5Inc. Cipta Informatika Cemerlang55
6Inc. Cyber Bintan21
7Inc. Solusindo Bintang Pratama16
8Inc. Prestasi Piranti Informasi (Neuviz)11
9Inc. Supra Primatama Nusantara (Biznet)5
10Inc. Link net TBK (First Media)112
11Inc. Cipta Informasi Semesta18
12Inc. Angkasa Bintan Cemerlang15
13Inc. Filtech Antar Nusa12
Total422

Note(s): Table by authors

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Further reading

Book, L., Gatling, A. and Kim, J.(S.) (2019), “The effects of leadership satisfaction on employee engagement, loyalty, and retention in the hospitality industry”, Journal of Human Resources in Hospitality and Tourism, Vol. 18 No. 3, pp. 368-393, Routledge, doi: 10.1080/15332845.2019.1599787.

Corresponding author

Indrayani Indrayani can be contacted at: indrayani@univbatam.ac.id

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