Competence and Retention Effects on Employee Performance through Organizational Commitment at PT SBCR

Abstract

High-stakes operational environments today place immense pressure on employee performance, making it a perennial headache for organizational leaders. While the industry often obsesses over sharpening technical competencies or tightening retention policies, the reality is that these factors don't automatically lead to better output. There is a "missing link" in this equation — a psychological bridge known as organizational commitment that dictates how talent actually turns into results. Our study dives into this dynamic, specifically investigating how commitment acts as a critical mediator between an employee's skills, their desire to stay, and their ultimate job performance.

By surveying a specific group of 179 employees through a saturated sampling method, we applied regression and mediation models to see what’s really happening on the ground. What we found is telling: competence and retention aren't just HR metrics; they are the primary fuel for building genuine organizational commitment. When employees feel deeply attached to their workplace, their performance naturally climbs. The data confirms that commitment isn't just a side effect — it is the mechanism that explains how personal ability and stability actually drive corporate success. Simply put, if you want better performance, you cannot just train or retain; you must win the heart of the employee through fostered commitment.

Research limitations/implications: Focuses only on competence, retention, and organizational commitment variables, providing opportunities for future research to explore additional factors influencing employee performance.

Practical implications: Study provide practical guidance for companies in improving employee performance through competency development, retention strategies, and strengthening organizational commitment.

Originality/value: Study offers empirical insight into the mediating role of organizational commitment in the relationship between competence, retention, and employee performance within the context of PT SBCR.

Paper type: Research Paper