STRATEGIES FOR ENGAGEMENT EMPLOYEES: THE IMPACT OF COMPENSATION, SUPERVISOR SUPPORT, CAREER DEVELOPMENT, AND DIGITAL LITERACY

Authors

  • Gustiawan Dwi Mustofa Management Department, Bina Nusantara University
  • Farren Rangga Pradipta Management Department, Bina Nusantara University
  • Diena Dwidienawati Management Department, Bina Nusantara University

DOI:

https://doi.org/10.18623/rvd.v23.n2.4510

Keywords:

Compensation, Career Development, Perceived Supervisor Support, Digital Literacy, Employee Engagement

Abstract

Employee engagement has emerged as a central issue for organizational sustainability, particularly amid digital transformation where motivation and adaptability are vital. Despite extensive research, the understanding of its antecedents remains fragmented, especially in developing contexts. This study investigates how Compensation, Career Development, Perceived Supervisor Support, and Digital Literacy influence Employee Engagement in Indonesian organizations. Using a quantitative design with SmartPLS analysis, data were collected from employees across multiple sectors. The results show that compensation, career development, and perceived supervisor support significantly enhance engagement, while digital literacy has a positive but comparatively weaker effect. Among these variables, career development exerts the strongest influence, emphasizing the importance of growth and development opportunities in sustaining engagement. The study contributes to the literature by integrating traditional motivational constructs with digital competency perspectives and highlighting the need to contextualize engagement models in emerging economies. Practically, it suggests that organizations should strengthen fair compensation, structured career development, supportive leadership, and digital readiness to build enduring engagement in technology-driven workplaces.

References

1. Andrlić, B., Priyashantha, K. G., & De Alwis, A. C. (2023). Employee engagement management in the COVID-19 pandemic: A systematic literature review. Sustainability, 15(2), 987. https://doi.org/10.3390/su15020987

2. Aziedjo, A. (2024). The impact of career development on employee engagement and retention. International Journal of Multidisciplinary Studies and Innovative Research, 12(2), 1776–1784.

3. Becker, J.-M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2023). PLS-SEM most wanted guidance.International Journal of Contemporary Hospitality Management, 35(1), 321–346. https://doi.org/10.1108/IJCHM-04-2022-0474

4. Boccoli, G., Gastaldi, L., & Corso, M. (2023). The evolution of employee engagement: Towards a social and contextual construct for balancing individual performance and wellbeing dynamically. International Journal of Management Reviews, 25(1), 75–98. https://doi.org/10.1111/ijmr.123044

5. Chan, S. H. J., Hooi, L. W., & Ngui, K. S. (2021). Do digital literacies matter in employee engagement in digitalised workplace? International Journal of Manpower, 43(2), 424–450.

6. Eladl, A. M., & Esenyel, V. (2025). Empowering change: Uncovering the dynamic association between supervisor support, employee engagement, and turnover intention. Journal of Global Business Insights, 10(2), 147–163. https://doi.org/10.5038/2640-6489.10.2.1322

7. Gallup. (2024). 42% of employee turnover is preventable but often ignored. Gallup Workplace. https://www.gallup.com/workplace/646538/employee-turnover-preventable-often-ignored.aspx

8. Gustiawan, D. M., Farren, R. P., & Setyawati, I. (2024). Hasil survei strategies for employee retention: The impact of compensation, supervisor support, career development, and digital literacy [Unpublished raw data]. https://bit.ly/47ALtUE

9. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.

10. Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system. Journal of Entrepreneurship, Management and Innovation, 18(2), 137–173. https://doi.org/10.7341/20221825

11. Imam, H., Sahi, A., & Farasat, M. (2023). The roles of supervisor support, employee engagement and internal communication in performance: A social exchange perspective. Corporate Communications: An International Journal, 28(3), 489–505. https://doi.org/10.1108/CCIJ-08-2022-0102

12. Kadhim, M. J. (2024). Digital literacy and its importance in the modern workforce. International Journal of Social Trends, 2(2), 44–50.

13. Kwon, K., & Jeong, Y. (2024). Employee development and employee engagement: A review and integrated model. Human Resource Development Review, 23(1), 44–76.

14. Kwon, K., & Kim, T. (2020). An integrative literature review of employee engagement and innovative behavior: Revisiting the JD-R model. Human Resource Management Review, 30(2), 100704. https://doi.org/10.1016/j.hrmr.2019.100704

15. Lee, S. E., & Shin, G. (2023). The effect of perceived organizational and supervisory support on employee engagement during COVID-19 crises: Mediating effect of work-life balance policy. Public Personnel Management, 52(3), 401–428. https://doi.org/10.1177/00910260231171395

16. Lestari, I. T., Wulandari, M. P., & Nasution, Z. (2021). Quality relationships between superiors and subordinates as well as fellow colleagues at the Sweetener and Fiber Research Center in 2010–2019. International Journal of Science and Society, 3(2), 231–243.

17. McLean & Company. (2025). Employee engagement trends report 2025: Shifts shaping the workplace. McLean & Company Research Insights.

18. Mishra, A. K., Mishra, S., Nirubarani, J., Radha, P., & Priyadharshini, R. (2024). Artificial and emotional intelligence for employee engagement. In Employee Management (pp. 194–199). Zenodo. https://doi.org/10.5281/zenodo.14810271

19. Muafi, M., Sanusi, Z. M., & Roostika, R. (2023). Digital skills, digital entrepreneurship, job satisfaction, and sustainable performance of MSMEs: A survey on MSMEs in Indonesia. International Journal of Sustainable Development and Planning, 18(2), 465–473. https://doi.org/10.18280/ijsdp.180215

20. Nikisi, E., Masha, A., & Bwowe, P. W. (2024). Effects of compensation benefits on employee engagement for private family business schools. Business Ethics and Leadership, 8(3), 97–119. https://doi.org/10.61093/bel.8(3).97-119.2024

21. Nikou, S., De Reuver, M., & Kanafi, M. M. (2022). Workplace literacy skills—how information and digital literacy affect adoption of digital technology. Journal of Documentation, 78(7), 371–391. https://doi.org/10.1108/JD-03-2021-0071

22. O.C. Tanner Institute. (2024). 2024 global culture report. O.C. Tanner. https://www.octanner.com/global-culture-report

23. Pilav-Velić, A., Černe, M., Trkman, P., Wong, S. I., & Kadić Abaz, A. (2021). Digital or innovative: Understanding digital literacy–practice–innovative work behavior chain.

24. Putra, I., Syahrul, L., & Yulihasri. (2023). The effect of digital literacy and transformational leadership on employee performance mediated by innovative work behavior at the Padang city population and civil registration service. Enrichment: Journal of Management, 12(6), 5014–5022. Institute of Computer Science (IOCS). https://www.enrichment.iocspublisher.org

25. PwC. (2024). Global workforce hopes and fears survey 2024. PricewaterhouseCoopers. https://www.pwc.com/workforce

26. Ranjan, R., Arora, S., & Srivastava, D. (2025). Impact of benefits, work culture and career development on employee engagement and organizational commitment. International Journal of Innovative Research and Scientific Studies, 8(2), 2247–2259. https://doi.org/10.53894/ijirss.v8i2.5677

27. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2024). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of market research (pp. 587–632). Springer.

28. Schaufeli, W. B., De Witte, H., & Desart, S. (2020). Can you buy work engagement? The relationship between pay, fringe benefits, financial bonuses and work engagement. Current Psychology, 42, 4785–4803. https://doi.org/10.1007/s12144-017-9768-4

29. Shiferaw, R. M., & Birbirsa, Z. A. (2025). Digital technology and human resource practices: A systematic literature review. Heliyon, 11, e41946. https://doi.org/10.1016/j.heliyon.2025.e41946

30. Sinisterra, L., Peñalver, J., & Salanova, M. (2024). Connecting the organizational incomes and outcomes: A systematic review of the relationship between talent management, employee engagement, and turnover intention. Frontiers in Psychology, 15, 1439127. https://doi.org/10.3389/fpsyg.2024.1439127

31. Suhartini, R., Ekohariadi, E., Nurlaela, L., Wahyuningsih, U., Yulistiana, Y., & Prihatina, Y. I. (2022). Validity, reliability, intra-rater instrument parameter teaching factory and learning outcomes of industrial clothing. In Advances in Social Science, Education and Humanities Research (Vol. 618, pp. 201–208). Atlantis Press.

32. Tarek, B., Muzakki, M., & Herachwati, N. (2025). Supervisor support, meaningful work, and happiness in employee engagement. Riset: Jurnal Aplikasi Ekonomi Akuntansi dan Bisnis, 7(1), 45–62.

33. Wedadjati, R. S., & Helmi, S. (2022). Evaluasi kepuasan karyawan berbasis Herzberg’s Two Factors Motivation Theory.Journal Management, Business, and Accounting, 21(3), 246–262.

34. Wittenberg, H., Eweje, G., Taskin, N., & Forsyth, D. (2024). Different perspectives on engagement, where to from here? A systematic literature review. International Journal of Management Reviews, 26(3), 410–434. https://doi.org/10.1111/ijmr.12361

35. Work Institute. (2024). 2024 retention report. Work Institute. https://info.workinstitute.com/retention-report

36. Workday. (2023). Frontline workers: How to connect, enable, and support them in the modern workplace. Workday Research Report. https://www.workday.com/en-us/resources/research.html

37. World Bank. (2023). Building digital literacy and skills to reflect the needs of the labor market. World Bank Group. https://www.worldbank.org/digital-skills

38. Zaqiyah, F. N., Istiqomah, T. N., Fadilla, N., Mardianto, P. H., & Putra, R. S. (2023). A systematic literature review: Pengaruh kompensasi dan motivasi terhadap kinerja karyawan. Jurnal Ekonomi Bisnis dan Sosial Sains, 2(1), 1–15.

39. Zhan, X., & Xie, S. (2025). Linking workplace digitalization to work engagement: Evidence from China public sector organizations. Frontiers in Psychology, 16, 1455250. https://doi.org/10.3389/fpsyg.2025.1455250

40. Zhu, J., & Song, H. (2022). The impact of career growth on knowledge-based employee engagement: The mediating role of affective commitment and the moderating role of perceived organizational support. Frontiers in Psychology, 13, 805208. https://doi.org/10.3389/fpsyg.2022.805208

Downloads

Published

2026-01-22

How to Cite

Mustofa, G. D., Pradipta, F. R., & Dwidienawati, D. (2026). STRATEGIES FOR ENGAGEMENT EMPLOYEES: THE IMPACT OF COMPENSATION, SUPERVISOR SUPPORT, CAREER DEVELOPMENT, AND DIGITAL LITERACY. Veredas Do Direito, 23, e234510. https://doi.org/10.18623/rvd.v23.n2.4510

Issue

Vol. 23 (2026): Veredas do Direito, v. 23, 2026

Section

Articles

License

I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.

I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.

 

Licença Creative Commons Attribution 3.0