Abstract
The industrial era 4.0 requires companies to radically conduct changes related to technology. This is so that the company can follow the market's everchanging appetite and is essential to maintaining the company's sustainability. The digital transformation that occurs is fundamental, changing existing procedures and arrangements and creating a new business ecosystem. In carrying out a company transformation, it requires full support and commitment from workers. And the process needs to be conducted by competent leaders, in line with the spirit of change. In this study, the relationship between transformational leadership climate and employee engagement was measured. The research was conducted on banking service companies that have made radical changes related to technology for 2 years. The results showed that the climate created by leaders who adopt transformational leadership styles has a positive and significant effect on employee engagement. This research is a preliminary study, and has limitations, including the number of samples and types of companies studied.
Highlights
The results showed that the climate created by leaders who adopt transformational leadership styles has a positive and significant effect on employee engagement
The results of the hypothesis test found that there was a positive and significant relationship between transformational leadership climate and employee engagement, this result is in line with previous research where the climate built with a transformational leadership style has a positive influence on the level of engagement of companies engaged in services (Buil, 2019; Jeong, 2016; Schmitt, 2016)
During the process of change and daily operations, leaders are obliged to maintain a climate of transformational leadership, which is to demonstrate behavior that causes their followers to believe and be amazed, consistently becomes a source of inspiration and motivation, performs intellectual stimulation, gives individual attention, or pays attention to each follower individually and treat them on a personal basis
Summary
The Industrial Age 4.0 has required companies to adopt the latest technology to maintain their existence and sustainability in the business world. Customers are increasingly conducting online banking transactions and reducing manual transactions at conventional branches. This change in preferences is accelerating as the world enters the era of the Covid 19 pandemic. Banking business leaders make adjustments by encouraging the acceleration of the digital transformation process in the form of radical changes, changing the entire operational process, implementing new machines and applications and improving the quality of human resources. Changes and new job demand will affect employees, emotionally (Leyer et al, 2020). It is the responsibility of the company to manage the emotions that arise during change into positive energy, so that it can provide a good impetus in the change process (Winasis et al, 2020)
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