Impacts of grit, self-efficacy, and transformational leadership on job crafting and work engagement: Evidence from millennial bank employees in Indonesia

With millennials comprising 79% of Indonesia’s regional development banks (BPDs) workforce, understanding factors affecting their work engagement is crucial for organizational performance. This study examines how personal resources (grit and self-efficacy) and transformational leadership influence job crafting and work engagement among millennial employees in BPDs. Using a cross-sectional design, 477 millennial employees (aged 25-35) from six BPDs in Java, Indonesia, were surveyed. Data analysis using partial least squares structural equation modeling revealed that self-efficacy had the strongest direct effect on both job crafting (β = 0.303, p < 0.001) and work engagement (β = 0.276, p < 0.001), followed by grit’s impact on job crafting (β = 0.244, p < 0.001) and work engagement (β = 0.181, p < 0.001). Job crafting significantly influenced work engagement (β = 0.285, p < 0.001) and partially mediated the relationships between personal resources and work engagement. While transformational leadership did not moderate the relationship between job crafting and work engagement (β = –0.010, p > 0.05), it showed significant direct effects on both variables (β = 0.257 and β = 0.344, respectively). These findings demonstrate the importance of developing employees’ personal resources and leadership capabilities to enhance work engagement in Indonesia’s banking sector. AcknowledgmentOpen access funding was provided by journal publishing cost assistance from Universitas Padjadjaran. Regional Development Banks Association (ASBANDA) in Indonesia and regional development banks in Java Island (Bank BJB, Bank Jatim, Bank DIY, Bank Jateng, Bank DKI, and Bank Banten) are acknowledged for their contributions.