Jurnal Ekonomi Perusahaan ISSN: 0854-8154 . , 2830-1560 . The influence of employee engagement, digital transformation and talent management on the performance of Mercure Hotel Jakarta Kota Rahmat Firmansyah1*. Elfrida Viesta Napitupulu2 1,2,3 Management Department. Kwik Kian Gie School of Business and Information Technology. Jl. Yos Sudarso Kav 87. Sunter. Jakarta. Indonesia14350 Email Address: 1rahmat. firmansyah88@gmail. com , 2 elfrida. napitupulu@kwikkiangie. *Corresponding author ARTICLE INFORMATION ABSTRACT Flow: Received: July 4, 2024 Reviewed: August 22, 2024 Accepted: September 6, 2024 Published: September 11, 2024 Keywords: employee engagement, digital transformation, talent management, employee performance How to cite: Firmansyah. , & Napitupulu. The influence of employee engagement, digital transformation and talent management on the performance of Mercure Hotel Jakarta Kota employees. Jurnal Ekonomi Perusahaan, 31. , 119130 https://doi. org/10. 46806/jep. This research aims to analys the power of employee engagement, digital transformation, and talent management on employee performance. The population of this research is employees of the Mercure Jakarta Kota The sampling technique used is a completely filled of sample. So the total sample is 110 employees of the Mercure Jakarta Kota hotel. The research uses a quantitative approach with multiple linear regressions. The data that has been collected is calculated using the SPSS version 26 statistical program. The research results show that partially and simultaneously employee engagement, digital transformation, and talent management have a positive and important impact on the performance of Mercure Jakarta Kota hotel employees. Copyright A Jurnal Ekonomi Perusahaan. All rights reserved 119 | https://doi. org/10. 46806/jep. Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 INTRODUCTION Tight competition between similar companies is normal and common, along with the swift progress of technology and information in the digital era, it can influence the level of competition in the business world to increase. Likewise, the Mercure Hotel Jakarta Kota experiences quite a sharp level of competition with various hotels in Jakarta. The growth of hotels from year to year also contributes to increasingly fierce competition. Data on the number of star hotels in 2012-2022 according to BPS is presented in the following figure: Figure 1. Number of Star Hotels in Indonesia 2012-2022 Source: Badan Pusat Statistik, 2023 The Central Statistics Agency (BPS) projected that in 2022, there were 3,763 star hotels in Indonesia. This figure represents a 6. 87% increase over the 3,521 units from the previous year. In 2022, there will be 358,833 rooms in all-star hotels. Additionally, the number has climbed from the 345,062 rooms it had the previous year The increase in the number of hotels in Indonesia is aligned with the advancement of the Indonesian tourism sector. Many star hotels are now starting to reopen their businesses after being temporally shut down to the Covid-19 pandemic. Based on the classification, three-star hotels have the most, namely 1,443 units with 125,620 rooms in 2022. This position is followed by two-star hotels with 765 units with 48,941 rooms. There are 752 four-star hotels with 112,494 rooms. The number of onestar hotels is 559 units with 23,919 rooms. Meanwhile, there are 244 five-star hotels with 47,859 rooms (BPS, 2. A high level of competition can also reduce company performance, this is in accordance with the data presented by BPS DKI Jakarta, 2022 which is presented in the following Figure 2. In more detail, the number of star hotels fell 2. 04 percent from 392 hotels in 2020 to 384 hotels in 2021. Meanwhile, non-star hotels experienced a bigger decline, 95 percent from 547 hotels in 2020 to 509 hotels in 2021. This is thought to have occurred in the performance of employees at the Mercure Jakarta City hotel who experienced a decline in performance, did not show high work performance and lacked a sense of attachment to the company or organization. Decreased employee performance in the company can cause the company's goals not Firmansyah and Napitupulu | 120 The influence of employee engagement A to be entire, for this reason the company should try as early as possible how to improve employee performance. Figure 2. Number of accommodation service businesses in Jakarta 2018-2021 Source: Jakarta Central Statistics Agency, 2022 High employee performance is a contemplation that the efficiency of the organization or company has increased. In this research, several factors can be put forward that can influence employee performance, namely: organizational culture, organizational citizenship behavior, perceived organizational support, innovative work behavior, work life quality, transformational leadership, job motivation, satisfying work and so on. In this research, employee performance is influenced by employee engagement, digital transformation, and talent management. Schiemann . defines employee engagement as a readiness to advocate the interests of the company, this includes a readiness to advertise the company as a place to employment, purchase and even invest in the company. Employee engagement can improve employee performance, this is in congruence with study carried out by Zein & Aridi . and Ismail et al. Research by Ngaochai & Amara, . also shows that employee engagement is a significant and important determinant in determining employee performance. However, this is various from analysis aimed by Rembet et al. which states that employee engagement has no impact on employee performance. Kutnjak et al. To implement digital tools throughout the organization, digital transformation is a complicated and exacting procedure that calls for the devotion of the whole company to use resources, including person, technological, physical, organizational, and financial ones. This is because digital transformation places a special emphasis on individuals and operational procedures, which are based on changing business models. The better digital transformation will affect employee performance improvement. The dynamic and all-encompassing process of talent management involves directly and integratedly developing the organization's most promising personnel. Research by Mohana et al. and Bibi . found that talent retention, leadership and rewards have a important impact on employee performance. However, this is various from analysis carried out by Yuwono et al. which stated that talent management has no impact on employee performance. Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Based on the phenomenon and prior studies which shows less consistent results, further research is needed to fill in the existing gaps. So this research will examine further the performance of employees at the Mercure Jakarta City Hotel. LITERATURE REVIEW Employee engagement According to Robbins and Judge . 8: . is determined by individual employee involvement, satisfaction and enthusiasm for doing their work. Robinson et al . describe employee engagement as a optimistic mindset that employees have towards the corporation where they are employed and the values that exist within that It has the potential to be concluded that employee engagement is a feeling of emotional affinity towards work and the organization, being motivated and able to provide their optimal abilities to help achieve success from a series of real benefits for the organization and individuals. Digital Transformation Digital transformation adapts business models outcome from the speed of technology and innovation that underlies modifications in consumer behavior (Kotarba, 2. According to Kutnjak et al. , digital transformation is a complicated and exacting procedure that demands the devotion of the whole corporation to utilise resources: person, technological, corporeal, organizational and monetary, so that digitalization carries out digital implements throughout the organization, specifiically focusing on on individuals and operational procedures, derived from changing business models. Talent Management Talent Management is a systemic, comprehensive and organized approach to optimally utilize human resources by providing policy packages that achieve the desired goals (Saeed et al. , 2. An organization's systematic effort to engage, cultivate, and keep exceptional employees to be able to gain a competitive advantage is known as talent management (Narayanan et al. , 2. Derived from these definitions, it has the potential to be concluded that talent management is a systematic process and organizational commitment to attract, involve, develop and retain top players in an It consists of all work processes, activities, strategies, practices and systems aimed at developing and maintaining a superior workforce. Employee performance Employee performance, according to Sinambela . , is the worker's capacity to accomplish specific tasks. Employee performance is critical as it indicates the extent to which they can complete the responsibilities that have been delegated to them. Employee performance, according to Mangkunegara . , is the outcome of the amount and quality of employment that an employee finishes while doing his or her duties in compliance with the obligations assigned to them. These criteria lead to the conclusion that an employee's performance is defined as their accomplishment of the goals set out in the job-specific standards. Firmansyah and Napitupulu | 122 The influence of employee engagement A Variable Relationships Employee engagement on Employee performance Ismail et al. stated that employee engagement has an important positivity impact on employee performance. Ekhsan et al. revealed that employees are more likely to be passionate, committed, and task-focused when they are emotionally and cognitively invested in their job. In addition to feeling more content with their professions, engaged workers are also more inclined to take the initiative and search for methods to enhance their performance. Robinson et al. also states the same thing, namely that engaged employees are conscious of the company's commercial environment and job with their co-workers to enhance performance in their work for the advantage of their company. So the hypothesis proposed is: H1: employee engagement positive influence on Employee performance Hotel Mercure Jakarta Kota Digital Transformation terhadap Employee performance Shwedeh et al. stated that employee performance can be significantly influenced by an organization's digital transformation, which can also have an effect on efficiency and alternative regions of employment. Saranya & Vasantha, . also stated that digital transformation is not about software or technology, but rather about the organization's adaptability and change to a digitalized environment. So the hypothesis proposed is: H2: Digital Transformation positive influence on Employee performance Hotel Mercure Jakarta Kota Talent Management terhadap Employee performance According to Ekhsan et al. , efficient talent management may assist in assigning the appropriate personnel to the appropriate duties, offering the required training and development, and making sure that staff members have the resources and tools they need to meet performance targets. Therefore, an significant appearance for organizations today is to entice, advance and hold talent which can then improve employee performance (Bibi, 2. So the hypothesis proposed is: H3: talent management positive influence on Employee performance Hotel Mercure Jakarta Kota METHODS Research object in investigation is an characteristic, nature, or human worth, object, or engagement with specific diversities, which is resolute by the researcher to study and come to findings (Sugiyono, 2. The objects of observation in the analysis is Mercure Jakarta Kota hotel, while the research subjects are employees of the Mercure Jakarta Kota hotel. The populace in this research were all employees of the Mercure Jakarta Kota hotel. In this case, the Mercure Jakarta Kota hotel has 110 employees, the sample size reaches an acceptable level because there are more than 100 samples, so that the entire population in the study is used as a sample of 110 employees. Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Data obtained from the results of distributing questionnaires will be processed using SPSS 26 software. The normality, multicollinearity, and heteroscedasticity tests make up the traditional assumption test. According to Ghozali, . the normalcy test is used to test in case in the regression model, the residuals have a typical dispersion. If it is consequential > . then the residual data is typically dispersed. According to Ghozali, . , the multicollinearity test objectives to test inquire about the regression model finds a relationship among independent variables. If the threshold value is > 0. 1 and VIF < 10, then there is no multicollinearity among the independent variables and the regression model. According to Ghozali . , the heteroscedasticity test objectives to test inquire in the regression model there is inequality of dispersion from the residuals of one instance to another observation. If the significant value is > . , then heteroscedasticity does not happen. On the other hand, if the important value is < . , then heteroscedasticity happens. If the classical assumptions are met, a multiple linear regression test will be carried out. RESULTS AND DISCUSSION Result Validity and Reliability Based on the Table 1, all employee performance variable statement items have a calculated r value > r table 0. So all employee performance variable statement items are said to be valid. And the Cronbach's Alpha value > 0. 60 then all questionnaires from the four variables are declared reliable. Table 1. Validity and reliability test results Dimensions and items r count r table Alpha 0,784 0,739 0,725 0,762 0,756 0,929 0,756 0,781 0,756 0,723 0,727 0,730 0,747 0,731 0,723 0,721 0,746 0,734 Employee Engagement I am passionate about doing my job I am ready to adapt to my job I always try my best at work I never give up on completing the work given I am ready to make sacrifices to give enthusiasm to the work given by the company I feel proud to be able to do the work given by the company I have inspiration and perseverance in doing the work until it is I feel that I have gained valuable experience from the work done I feel that the work given is a challenge to be completed well I have full attention to the work assigned I have high concentration in completing the work I am always serious in completing the work given by the company Digital Transformation Mercure Jakarta Kota Hotel Management carries out digital transformation considering ease of use for customers Mercury Jakarta Kota Hotel Management carries out digital transformation tailored to customer needs Mercury Jakarta Kota Hotel Management carries out digital transformation tailored to customer segmentation Employee training on digitalization is carried out intensively in support of digital transformation Employee skills on digitalization are improved in support of digital Firmansyah and Napitupulu | 124 0,928 The influence of employee engagement A Dimensions and items Employee knowledge on digitalization is improved in support of digital transformation Management processes on service quality are improved in support of digital transformation Supporting processes on creating value for internal customers are improved in support of digital transformation Operational processes on creating value for external customers are improved in support of digital transformation Mercury Jakarta Kota Hotel Management offers new service products through digitalization Mercury Jakarta Kota Hotel Management offers new service product models through digitalization Mercury Jakarta Kota Hotel Management offers new business models through digitalization Talent Management Recruitment and selection process in Mercure Jakarta Kota hotel about talent needed is very important. In Mercure Jakarta Kota hotel employee skill identification is very important to improve performance Employees are often evaluated to find new initiatives that can be In Mercure Jakarta Kota hotel development needs for employee talent need to be identified In Mercure Jakarta Kota hotel well-identified talent has many opportunities for upward mobility. In Mercure Jakarta Kota hotel good talent has a clear career path Company management motivates employees in working in Mercure Jakarta Kota hotel Company management gives extra effort to employees in working in Mercure Jakarta Kota hotel Company management encourages employees to really focus on working in Mercure Jakarta Kota hotel Promotion in Mercure Jakarta Kota hotel is based on work performance, not seniority. Targets and deadlines are clearly communicated to employees Mercure Jakarta Kota Hotel Management has a competitive compensation system, which is a motivating factor for Mercure Jakarta Kota Hotel Management has an internal recruitment policy that helps improve employee loyalty and morale. Employee Performance I have a good attitude towards fellow co-workers I have a good appearance in carrying out work I have a quick initiative in carrying out work I can achieve good development in the organization I can work well with fellow co-workers I can provide good service to the company I have good knowledge according to my job I have a good level of skills according to my job I have technical behavior in carrying out work I can do work according to company targets I can complete work on time I can change the past into present achievements I can work with a focus on future progress Management r count 0,789 r table 0,743 0,725 0,782 0,751 0,757 0,764 0,73 0,802 0,798 0,779 0,798 0,742 0,783 0,768 0,79 0,793 0,793 0,795 0,783 0,772 0,774 0,775 0,743 0,798 0,707 0,752 0,723 0,763 0,736 0,748 0,729 0,834 Alpha 0,947 0,938 Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Normality Test Normalcy test outcomes can be observed in the subsequent Table 2. Established on Table 2, it is notable that the sig value is 0. 200 or more than 0. So it can be inferred that the study data is typically dispersed. Table 2. Normality test results Criteria Results Asymp. Sig. -taile. > 0,05 0,200 Source: Data handled by researchers Multicollinearity Test It can be seen in table 3 that the treshold value is > 0. 1 and VIF < 10, so there is no multicollinearity within the independent variables and the regression model. Table 3. Multicollinearity Test Results Variable Tolerance VIF Conclusion Employee Engagement 0,128 7,843 There is no multicollinearity Digital Transformation 0,105 9,486 There is no multicollinearity Talent Management 0,111 9,008 There is no multicollinearity Source: Data handled by researchers Heteroscedasticity Test It is observable in table 4 that the significant values of the three independent variables are > . , so it can be said that the model in this research does not have Table 4. Heteroscedasticity Test Results Variable Sig Conclusion Employee Engagement 0,070 There is no heteroscedasticity Digital Transformation 0,922 There is no heteroscedasticity Talent Management 0,292 There is no heteroscedasticity Source: Data handled by researchers F Test Based on table 5, the outcomes of the model suitability test (F tes. , the calculated F result of this research is 300. 972 or more than Ftable = 2. 69 (Df1=3. Df2=. and has a significance value of 0. 000 or less than . , then it can be ended that the employee engagement, digital transformation, and talent management has a simultaneous effect on the employee performance. Table 5. Model Suitability Test Results (F Tes. F Hitung F Table Sig. Conclusion 300,972 2,690 0,000 Significant Source: Data handled by researchers t Test Established on the results of the hypothesis test, the following equation results can be Y = 1,727 0,339 X1 0,273 X2 0,424 X3 Firmansyah and Napitupulu | 126 The influence of employee engagement A Conclusion : = Employee Engagement = Digital Transformation = Talent Management = Employee performance Based on the outcomes of the t test for the employee engagement variable, a calculated t value of 3. 367 > 1. 659, a importance value of 0. 001 < 0. 05, and a positive Unstandardized Coefficients beta value of 0. 339 were obtained. So it has potential to be concluded that employee engagement has a important positive impact on employee Based on the outcomes of the t test for the digital transformation variable, a calculated t value of 2. 531 > 1. 659, a important value of 0. 013 < 0. 05, and a positive Unstandardized Coefficients beta value of 0. 273 were obtained. So it may be inferred that digital transformation has a important positive effect on employee performance. Based on the outcomes of the t test for the aptitude management variable, a calculated t value of 4. 536 > 1. 659, a importance value of 0. 000 < 0. 05, and a positive Unstandardized Coefficients beta value of 0. 424 were obtained. So it may be inferred that aptitude management has a important positive impact on employee performance. Table 5. Regression Coefficient Test Results . Tes. Unstandardized Standardized Variable Coefficients Coefficients Constant 1,727 1,016 Employee Engagement 0,339 0,297 3,367 Digital Transformation 0,273 0,245 2,531 Talent Management 0,424 0,429 4,536 Source: Data handled by researchers Sig. 0,312 0,001 0,013 0,000 R-Square According to Ghozali . , coefficient determination indicates how far the model's capability is to elucidate versions in the reliant variable. The outcomes of the determination is displayed in Table 6. Table 6. Determination Test Results (R Squar. Model Summary Std. Error of Adjusted Model Square R Square Estimate ,895 ,892 3,078 Predictors: (Constan. Talent_Management. Employee_Engagement. Transformasi_Digital Source: Data handled by researchers . Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 The coefficient of determination (R Squar. value is 0. 895 or 89. It shows that employee performance can be clarified by employee engagement, digital transformation and talent management by 89. 5%, as the rest is clarified by other variables outside the research. Discussion Employee engagement on Employee performance Employee engagement has a important favourable effect on employee performance. This indicates that Mercure Jakarta Kota hotel employees have an attachment that is displayed through their physical and cognitive prowess when doing their employment. Employees also have an emotional attachment to their work and employee engagement is also characterised by the conduct of employees who give undivided focus to their Digital Transformation on Employee performance Digital transformation has a important favourable impact on employee performance. This can mean that Mercure Jakarta Kota hotel employees have high standards that are customer-oriented by implementing innovation, technology, creativity and digitalization in their work so that they can improve their performance. The company has a clear business process with a series of organized activities with clear input and output and the business model implemented by the company leads to a new digital ecosystem in the medium and long term. Talent management on Employee performance Talent management has a important positive impact on employee performance. It can be concluded that the Mercure Jakarta Kota hotel management has an organizational strategic initiative to entice, advance and hold employees who have talent so that employee performance will increase. In order to help workers grow their skills and abilities at work, the organization supports employee talent management via hiring and training staff members who already possess the necessary skills or abilities. MANAGERIAL IMPLICATION Employee engagement, digital transformation and talent management influence employee performance. So the management of the Mercure Jakarta Kota hotel must continue to maintain employee performance so that it continues to improve because human resources play an important role in a business because it allows people to use all the potential of their resources to successfully achieve goals both inside and outside the company. CONCLUSION The study outcome showing that employee engagement has a significant positive impact on employee performance. This indicates that Mercure Jakarta Kota hotel employees have a positive attitude towards the company. Digital transformation has a important positive impact on employee performance. This can mean that Mercure Jakarta Kota hotel employees have innovation, technology, creativity and digitalization in their work so they can improve their performance. The research outcomes showing Firmansyah and Napitupulu | 128 The influence of employee engagement A that aptitude management has a significant positive impact on employee performance. It can be concluded that the Mercure Jakarta Kota hotel management has an organizational strategic initiative to entice, advance and hold talented employees so that employee performance will increase. The research was conducted on Mercure Jakarta Kota hotel employees with different job sections, so the factors that influence their performance are also different. It is recommended that further research use homogeneous samples with respondents who have the same position or field of work, which is expected to be better able to describe the factors that influence employee REFERENCES