Abstract:
This study analyses the effect of age, cultural diversity, and PT. XYZ’s employee
performance in Jakarta. It focuses on how the relationship between workforce
diversity and performance is moderated by job satisfaction. This study applied a
quantitative approach using Partial Least Squares Structural Equation Modelling
(PLS-SEM) to analyse data from 57 employees. Both age and cultural diversity
positively affect job satisfaction, with age diversity positively influencing it even
more. The results illustrated that age diversity enhances communication and
fairness, while cultural diversity promotes inclusiveness. Job satisfaction emerged
as the strongest predictor of employee performance and fully mediated the impact
of both diversity dimensions. The direct impacts of age and cultural diversity on
performance were non-significant, indicating that these influences operate through
job satisfactions. Organisations that seek to improve the productivity of diverse
employees must first seek to improve job satisfaction. The study recommends that
managers strive to improve inclusivity by cultivating an environment where all
employees feel appreciated. For PT. XYZ, this involved policy changes such as
intergenerational mentorships and formalised culture inclusion initiatives. This is
how organisations can enhance performance using workforce diversity.
