INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 7, ISSUE 5, MAY 2018 ISSN 2277-8616 34 IJSTR©2018 www.ijstr.org The Effect Of Work Environment, Bonuses And Organizational Trust On Employee Engagement In PT. Taspen (Persero) PIRMA SIMBOLON, R. MADHAKOMALA, BUDI SANTOSO Abstract: The purpose of this research aims to investigate the effect of work environment, bonuses, and organizational trust on employee engagement. This research was conducted at the headquarters of PT Taspen (Persero), in Jakarta, Indonesia. The data collection used sensus method with path analysis approach, by distributing questionnaires to 394 employees. All population within each work units became the respondents of this research without distinguishing their position levels. The research results show that: (i) the work environment has a direct positive effect on employee engagement; (ii) bonus have a direct positive effect on employee engagement; (iii) organizational trust has a direct positive effect on employee engagement; (iv) the work environment has a direct positive effect on organizational trust; and (v) production services have a direct positive effect on organizational trust;(vi) the work environment has an indirect positive effect on employee engagement mediating through organizational trust; (vii) bonus have an indirect positive effect on employee engagement mediating through organizational trust; Index Terms: employee engagement, work environment, bonuses and organizational trust —————————— —————————— 1. INTRODUCTION Employee engagement is an exciting topic researched by researchers or consultants as released by the Gallup Organization (2016) which puts Indonesia at the bottom of 5 (five) countries (Philippines, Thailand, Malaysia, Singapore and Indonesia) where the employee engagement of Indonesia is engaged 8% while the highest is owned by the Philippines 29% engaged. This matter indicates how crucial the problem of employee engagement in Indonesia including in PT Taspen (Persero) as a State-Owned Enterprises. Based on the preliminary survey that researchers conducted on 30 employees of PT Taspen (Persero), it found that welfare aspect 51,67% employees expressed lack of agreement (disagree and strongly disagree) not only the company have given good contribution to the employees but also the terms of a guarantee of a good future. In the aspect of information, there are 56.67% of employees who disagree and strongly disagree in terms of easiness to obtain information on the development of the company. Similarly, for the equality / fairness aspect, there are 59.97% of employees said that they disagree and strongly disagree in having equal opportunity with others for promotion and education. As for the involvement aspect, there are 58.3% of employees who disagree and strongly disagree in terms of knowing what they have to do and employee involvement helping others to complete the work. The results survey above parallels to the data of head office PT Taspen (Persero) employee absenteeism which showed improvement over the last three years, it showed the number of employees late in 2014 is 118 employee, it increased to 119 in 2015 and 121 in 2016. The Employees who leaves early in 2014 is 75 people than dropped to 59 in 2015 and increased again to 85 in 2016. The Employee who is not present without confirmation in 2014 is 25 employee rose to 55 people in 2015 and increased again to 89 in 2016. The employees who are absent without permited in 2014 are 99. It increased to 149 in 2015 then increased again to 164 in 2016. The absent employees cause sickness in 2014 are 58 people. It fell slightly to 57 in 2015 than it increased sharply become185 people in 2015. Preliminary survey results and employee absenteeism data above reinforce the allegations of strong indications of problems in terms of employee engagement in organization. Therefore it is not only interesting but also important to be analyze because employee engagement variables can be an impact on decreasing individual performance and corporate performance, it has potentially high turnover employees, which ultimately affects the company's existence. 2. LITERATUR REVIEW Basically, employee engagement is like as motivation but not a synonym. Employee engagement is directed to an entrenched intrinsic position, with a deep sense of commitment, pride, and loyalty that is not easily erased. While the motivation is influenced by external factors, especially certain expectations that will result in valuable awards such as giving bonuses and others (Marciano, 2010). Employee engagements are employees who are emotionally connected to their organizations and co-workers. Employees who feel attached to the company will work more enthusiastically and feel a deep connection to the company. It is characterized by the drive of innovation that moves the company into the future (Buckhingham and Coffman, cited in Koscec, 2007). ________________________ PIRMA SIMBOLON: Postgraduate, Management Science Program, State University of Jakarta, Indonesia, pirmasimbolon@yahoo.co.id R. MADHAKOMALA: Lecturer State University of Jakarta, Indonesia, madakomala@live.com BUDI SANTOSO: State University of Jakarta, Indonesia, rawdo2003@gmail.com