From Stress to Performance: Examining the Impact of Job Insecurity, Job Stress, Work Engagement, and Motivation on Employees of XYZ Bank

INKUBIS: Jurnal Ekonomi dan Bisnis Volume 8, Issue 1, 264-277 e_ISSN: 2775-3913 https://inkubis.polteksci.ac.id/index.php/ink/index DOI: doi.org/10.59261/inkubis.v8i1.186 From Stress to Performance: Examining the Impact of Job Insecurity, Job Stress, Work Engagement, and Motivation on Employees of XYZ Bank Theo Rizaldy Siahaan1* Ardi Ardi2 Sylvia Samuel3 Universitas Pelita Harapan, Indonesia Universitas Pelita Harapan, Indonesia Universitas Pelita Harapan, Indonesia Richard Andre Sunarjo4 Margaretha Pink Berlianto5 Universitas Pelita Harapan, Indonesia Universitas Pelita Harapan, Indonesia *Corresponding author: Theo Rizaldy Siahaan, Universitas Pelita Harapan, Indonesia. 🖂 Article Info : Article history: Received: March 13, 2026 Revised: April 22, 2026 Accepted: April 24, 2026 Abstract Background: The banking industry faces technological and economic pressures that affect employee performance. Job insecurity and job stress tend to reduce performance, while work engagement and motivation enhance it, making these factors important for effective HR strategies. Objectives: This study aims to examine the effects of job insecurity, job stress, work engagement, and motivation on the employee performance of XYZ Bank employees. Methods: The study was conducted using a quantitative approach with Keywords: 127 XYZ Bank employees comprising the entire target population. bank; employee performance; job Hypothesis testing was carried out using PLS-SEM analysis with SmartPLS insecurity; job stress; work software. engagement; motivation. Results: The results showed that job insecurity and job stress had a negative effect on employee performance, while work engagement and motivation had a positive effect on employee performance. Conclusion: The managerial implications of this study indicate that companies need to be transparent with employees about organizational conditions so that employees can understand and anticipate when the company will implement efficiency measures, thereby preventing feelings of job insecurity in the workplace. To cite this article: Rizaldy Siahaan, Theo., Ardi., Sylvia Samuel., Rizhard Andre Sunarjo., & Margaretha Pink Berlianto. (2026). From Stress to Performance: Examining the Impact of Job Insecurity, Job Stress, Work Engagement, and Motivation on Employees of XYZ Bank. INKUBIS: Jurnal Ekonomi dan Bisnis, 8(1), 264-277. https://doi.org/10.59261/inkubis.v8i1.186 INTRODUCTION The banking industry plays a vital role in the Indonesian economy because it serves as a link between savers and borrowers and plays a major role in disbursing credit that drives economic growth. Through financial intermediation mechanisms, banks not only facilitate the flow of funds, but also provide essential means of payment and investment for economic actors, ranging from small businesses to large corporations. In addition, digitalization in the banking sector has opened up wider access for the public to financial services, expanded financial inclusion, and boosted operational efficiency in managing transactions and providing innovative banking products. The current banking condition in Indonesia shows a significant improvement trend. By mid-2025, the banking sector had successfully overcome several challenges, especially those related to liquidity and the high cost of funds, as reflected in projected credit growth expected to INKUBIS: Jurnal Ekonomi dan Bisnis | 264 Theo Rizaldy Siahaan, Ardi Ardi, Sylvia Samuel, Richard Andre Sunarjo, Margaretha Pink Berlianto From Stress to Performance... reach 11–13% in 2025, compared to the period in 2024. Digital transformation is also a key driver in strengthening banks' interaction and operational efficiency, while macroprudential policies and open banking initiatives support the stability and sustainability of the national financial system. The improvement in this condition is also supported by the government's strategic measures that have succeeded in stabilizing the flow of funds in the banking system. Indonesia's banking sector is navigating an era of simultaneous disruption and competitive pressure. The rapid shift toward digital financial services expressed through mobile banking penetration, open banking frameworks, and fintech competition is changing what marketing division employees do in traditional banks. This creates a paradoxical situation for marketing staff, who are strategic in their roles of credit disbursement and client acquisition, as transactional services migrate to digital platforms. Credit growth is expected to be 11–13% in 2025 nationally, but the restructuring of bank operations through digitalization continues to generate persistent fears about job continuity among individual marketing employees a point that places such insecurity more centrally in the psyche of the sector. Since Bank XYZ's marketing group is responsible for direct credit offering and new client acquisition across its 34 branch locations, the pressure on performance in this digital shift multiplies. Bank XYZ lagged the national banking average of +6.49% in credit growth, with its disproportionate and negative −5.08% average over the period from 2020 to 2023. Contextualizing this chronic deficit of performance, only 14.9% (19 out of 127) marketing employees met their credit targets, a once-defensible disparity that becomes indefensible without a price advantage when considering XYZ's loan interest rate levels (6.75% corporate; 8.75% retail; consumer at over 8%), all of which are market-competitive. Instead, the evidence points to psychological and motivational constraints within the marketing workforce as the factor that limits individual performance. The Job Demands–Resources (JD-R) Theory Bakker & Demerouti (2007) holds that outcomes generated in the workplace are determined by the relationship between job demands (stressors that draw on psychological resources) and job resources (enablers that build motivation and engagement). While the demand side of banking marketing roles comprises target pressure, digitalization uncertainty, and restructuring threats, the resource side consists of engagement, motivation, and organizational support. In support of this, the Conservation of Resources (COR) Theory Hobfoll (1989) predicts that employees threatened by potential resource loss such as job security and work status, or concern about their psychological well-being tend to conserve their remaining resources by withdrawing effort. In the Bank XYZ context, employees facing job insecurity may be conserving mental and motivational resources, unwilling to invest extra-role effort in credit acquisition activities whose payoff is uncertain. Together, JD-R and COR provide the theoretical foundation for the integrated model tested in this study. One of the banks currently active in Indonesia, namely Bank XYZ (Hongkong and Shanghai Banking Corporation), is one that has been operating for quite a long time since 1865 with Bank XYZ having operate (...truncated)