International Journal of Business Marketing and Management (IJBMM) Volume 8 Issue 1 Jan-Feb 2023, P.P. 41-51 ISSN: 2456-4559 www.ijbmm.com International Journal of Business Marketing and Management (IJBMM) Page 41 Professional Competency and Employee Performance in the Digitalization Era Mediated By Employee Engagement Mochamad Andik 1 , Siwi Dyah Ratnasari 2 1,2 STIE malangkucecwara Malang, East Java, Indonesia Abstract: The digitization of the health care sector has had a huge positive impact on medical practice in Indonesia. Various challenges and problems, especially in terms of big data, data security, regulations, and even human resources must be able to adapt to the needs of digital transformation systems. The purpose of the study was to determine the effect of: 1) Professional competence on employee engagement. 2) Professional competence on employee performance. 3) Employee engagement on employee performance. 4) Professional competence on employee performance mediated by employee engagement. This type of research is explanatory. The research population is nursing staff at dr. Haryoto Lumajang, totaling 397 people, Questionnaires are used as a tool in data collection The results showed that Employee Engagement has a positive effect on employee performance. Employee Engagement is proven as a full mediation in this study. Keywords: Professional Competency; Digitization; Engagement; Performance. I. Introduction Digital transformation has played a role in the industrial revolution (Putu Agus Adnyana et al., 2021), not least in the health sector. Realizing the benefits of digital transformation, hospitals must be able to adopt digital transformation into their management system (Khoiruddin Azizi, 2017). Adoption of digital transformation is an effort to produce better service quality (Trushkina et al., 2020). Digital transformation has forced the healthcare industry to make patients the center of their service system. The best service is obtained by exploring what the patient expects. In order to be able to compete in terms of value (quality) (Suehs, 2015), hospitals must meet patient needs better or at lower costs than their competitors (Dafny et al., 2018). RSUD dr Haryoto as a class B hospital has medical personnel, pharmacy staff, nursing staff, other health workers and non-health workers in 2021 totaling 828 employees, with a total of 397 nursing staff (source: dr Haryoto Lumajang Hospital). The problem of service to customers is a top priority for hospitals (Cortese, 2007). Nursing staff have a big role because they are the medical personnel who are at the patient's side the longest compared to other health workers. The ability to provide excellent service is needed (Meretoja et al., 2004). In line with the digitalization era, nursing staff must be literate with information technology in an effort to improve the quality of service to patients. Technology is not to keep nursing staff away from patients, but instead provides space to find out the patient's condition and immediately provide assistance according to the patient's development. The development of information technology demands that the resources in it have professional competencies. Professional competencies owned by employees will improve the resulting performance (Ţuţu & Constantin, 2012); (Mustafa, 2013); (Tiraieyari et al., 2010),. According to (Pronajaya et al., 2021) there is a positive relationship between professional competence and the performance produced by nursing staff. The influence of professional competence which is followed by the engaging behavior of nursing staff on performance results in higher performance than the direct influence of professional competence on performance (Chumba, 2020). Organizations that cannot create trust in their employees have an impact on poor employee performance (Arslan & Roudaki, 2019). Evidence shows that employee engagement has a positive impact on increasing employee productivity (Lewis et al., 2012). In addition to the need for professional competence to adapt to change, it is also necessary to engage employees as an effort to improve performance (Andrew & Sofian, 2012). Organizations should increase engagement behavior towards their employees as an effort to improve performance (malik et al., 2016). The combination of competence and employee engagement behavior is a factor that the organization considers in improving employee performance (Mollaret & Miraucourt, 2016). Employee engagement increases nursing staff's concern for their work (Arslan & Roudaki, 2019); (De Los Santos & Labrague, 2021). Employee engagement can improve the professionalism of nursing staff in performing (Haron & Ariffin, 2018).