The Effect of Work-Life Balance, Transformational Leadership, and Organizational Culture on Employee Productivity Through Employee Engagement Among Generation Y Employees At Bank Mandiri Persero Tbk

In the contemporary banking industry, organizational performance is increasingly shaped by employees’ engagement and productivity, yet Bank Mandiri Persero Tbk faces a rising turnover trend among Generation Y employees whose expectations emphasize flexibility, meaningful work, career development, and work–life balance. This study examines the effects of Work-Life Balance (WLB), Transformational Leadership, and Organizational Culture on Employee Engagement and the subsequent effect of Employee Engagement on Employee Productivity among Generation Y employees at Bank Mandiri Branch XY, positioning engagement as a mediating mechanism. A quantitative, conclusive, and descriptive design with a single cross-sectional approach was employed. Primary data were collected via structured questionnaires from 150 employees selected using probability sampling. Data were analyzed using Structural Equation Modeling with a Partial Least Squares approach (SEM-PLS) through SmartPLS 3.0. The measurement model was evaluated using convergent validity (outer loadings and AVE), discriminant validity (cross-loadings and Fornell–Larcker), and reliability (Cronbach’s alpha and composite reliability). The findings show that WLB, Transformational Leadership, and Organizational Culture each have significant positive effects on Employee Engagement, and Employee Engagement has a significant positive effect on Employee Productivity. The measurement model met validity and reliability criteria, while the structural model demonstrated acceptable explanatory power and predictive relevance. Employee Engagement functions as a key pathway through which supportive work-life policies, effective leadership, and a conducive organizational culture enhance productivity. These results imply that Bank Mandiri should strengthen engagement-focused human capital strategies to sustain productivity and reduce turnover among Generation Y employees.