The Influence of Work Ethic and Competency Development on Employee Performance through Employee Loyalty as a Mediating Variable in the Beauty Salon Industry
DOI:
https://doi.org/10.38035/jafm.v7i4.3782Keywords:
Work Ethic, Competency Development, Employee Loyalty, Employee PerformanceAbstract
This study analyzes the influence of work ethic and competency development on employee performance, with employee loyalty as a mediating variable in the beauty salon industry in Greater Jakarta (Jabodetabek). The study is motivated by the highly competitive service environment in which salon performance depends not only on technical skill but also on disciplined work behavior, continuous competence enhancement, and employee retention. A quantitative explanatory design was employed using a survey of 320 employees from 37 beauty salons affiliated with the Tiara Kusuma Association. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings indicate that work ethic does not have a significant direct effect on employee loyalty or employee performance. Competency development has a positive and significant effect on employee loyalty but does not directly affect employee performance. Employee loyalty has a positive and significant effect on employee performance and fully mediates the relationship between competency development and employee performance. These results suggest that improving performance in beauty salons is more effective when competence development is designed to strengthen employee loyalty and long-term commitment to the organization.
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