THE INFLUENCE OF ETHICAL LEADERSHIP ON EMPLOYEE PERFORMANCE THROUGH EMPLOYEE ENGAGEMENT

Bali, which is a world tourism destination, has experienced increases in the number of visits by tourists over the years. This development becomes a challenge for tourism business practitioners to be able to compete, specifically in terms of service. This research aims to review the relationship between ethical leadership and employee performance through a mediating variable, namely employee engagement. This research is conducted on Badung Regency, as the area with the largest number of non-starred hotels in Bali, with a total population of 477 hotels and the sample, which consists of non-starred hotel employees, totals up to 120 people. The data is analyzed using the Partial Least Square and the Structural Equation Model (PLS-SEM). Results of this research have shown that the relationship between ethical leadership and employee performance is positive but not significant, thus the role of employee engagement as a full mediator is needed in the relationship between ethical leadership and employee performance.