Work Environment and Its Relationship with Performance from Millennial’s Perspective

Abstract

A physical and non-physical work environments are essential for employees to make them motivated, bound, and satisfied. Since the Millennial come to workplace bringing new work-values with them, management needs to accustom the values. The nature of the government organization such as a formal and bureaucratic system may contribute to the situation. This research was designed for testing and analyzing empirically what the work environments Millennial prefer most, and what the impact on the individual performance was. The effect was tested using motivation as a mediating variable. This study used a survey to collect data by cross section from 250 respondents who are civil servants working for Indonesia National Agency for Drug and Food Control located at various areas nationwide, selected purposively. The study found top three work environments preferred by Millennial: Work Challenges, ICT Facility, and Opportunity for Development. Using a Structural Equation Model (SEM), the estimated model proved that the Work Environment has no direct significant positive effect on Performance, but Motivation does. Therefore, to improve performance by enhancing the work environment it was suggested to consider aspects influencing employee motivation as wellbasis.

Keywords: Millennial, motivation, performance, public sector, work environment