Effect of Human Capital on Employee Engagement in Increasing Employee Performance

ABSTRACT : Increasingly competitive competition in the era of globalization encourages nations around the world to improve the quality of human resources. Human Capital has a central and important role in the success of an organization that can be used to develop the competitiveness of a company because it is rare, difficult to imitate by competitors and cannot be replaced by other types of resources. The sample size for this study is 110 participants, which will be used to support the research. The census method was utilized in this study as a sample methodology. The data required were collected through questionnaires. The results showed that Human Capital has a direct and significant effect on employee engagement, and also human capital has a direct and significant effect on employee performance, which were analyzed using SmartPLS software.

KEYWORDS : Human Capital, Employee Engagement, Employee Performance