THE INFLUENCE OF AGE AND CULTURAL DIVERSITIES ON JOB SATISFACTION AND EMPLOYEE PERFORMANCE AT PT. XYZ IN JAKARTA, INDONESIA

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.