The Influence of Transformational Leadership and Work Motivation on Employee Performance in Service Companies in Indonesia

This study investigates the influence of transformational leadership and work motivation on employee performance in service companies in Indonesia. The research aims to determine how leadership behavior that inspires and motivates employees can enhance their performance levels, particularly within a dynamic service industry environment. A quantitative approach was employed, involving a survey of 200 employees across various service companies. Data were analyzed using multiple regression analysis to examine the relationship between transformational leadership, work motivation, and employee performance. The results indicate that both transformational leadership and work motivation have a significant and positive effect on employee performance. Transformational leaders who demonstrate vision, encouragement, and individualized consideration effectively boost employee enthusiasm, engagement, and productivity. Furthermore, work motivation serves as a mediating factor that strengthens the relationship between leadership and performance outcomes. These findings suggest that organizations should prioritize leadership development programs and motivational strategies to foster high-performing employees. The study contributes to the understanding of organizational behavior in Indonesia’s service sector and provides practical insights for human resource management in enhancing overall company effectiveness.