Unpacking Employee Performance in the New Way of Working Era: The Roles of Work Ethics, Work Motivation, and Job Satisfaction in Indonesia's Banking Sector
Abstract
Background: Organizational transformation through the New Way of Working (NWOW) has reshaped employees’ work patterns, responsibilities, and performance expectations, particularly in the banking industry. While NWOW enhances organizational agility and flexibility, it also creates challenges related to employees’ adaptation to changing work demands. Therefore, understanding the behavioral and psychological factors that influence employee performance is essential. This study examines the effects of work ethics and work motivation on employee performance, with job satisfaction acting as a mediating variable.
Method: This study employed a quantitative approach with an explanatory and correlational research design. The study was conducted at a regional office of an Indonesian state-owned banking company that has implemented NWOW. A census sampling technique was applied, involving 165 employees working in service and sales functions who met the inclusion criteria. Primary data were collected through a structured questionnaire using a five-point Likert scale. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0 software.
Results: The findings reveal that work ethics and work motivation have significant positive effects on both job satisfaction and employee performance. Job satisfaction also significantly influences employee performance and partially mediates the relationships between work ethics and employee performance as well as between work motivation and employee performance.
Conclusion: Employee performance in the NWOW context is influenced not only by organizational transformation but also by behavioral and psychological factors. Strengthening work ethics, maintaining employee motivation, and fostering job satisfaction are essential strategies for sustaining employee performance and supporting successful organizational transformation
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