The Effect of Executive Competence and Integrity on Employee Performance: Motivation as a Mediation

Aims: The financial services sector is a strategic industry, so developing a competitive financial services sector needs to be supported by professional human resources with integrity and global competitiveness. This study aimed to determine the effect of competence and integrity on employee performance through motivation as a mediating variable.

Study Design and Methodology: The sample of this study was 205 employees of Sharia Rural Bank (BPRS) in Lampung Province, Indonesia. Data were obtained through questionnaires and processed using the Smart PLS analysis tool.

Results: The results of this study show that competence has a positive and significant effect on employee performance. Integrity has a positive and significant effect on employee performance. Competence has an insignificant positive effect on employee performance through motivation mediation. Integrity positively and significantly affects employee performance through motivation mediation.

Implications: This research suggests that BPRS needs to increase Good Corporate Governance (GCG) in the management to produce executive officers and employees with high competence and integrity so that they can make banks healthy. They can minimize fraud in bank financial management.