The Influence of Employee Engagement on Organizational Performance: A Systematic Review NURUL IMANI KURNIAWATI 1 , EDY RAHARJA 2 1 Faculty of Economics and Business, Diponegoro University Semarang, Logistic Management and Administration, Vocational School, Diponegoro University Semarang, Jl. Erlangga Tengah No.17, Pleburan, Kec. Semarang Sel., Kota Semarang, Jawa Tengah 50241, INDONESIA 2 Faculty of Economics and Business, Diponegoro University Semarang, Management, Science Economic and Business Faculty, Diponegoro University Semarang, Jl. Erlangga Tengah No.17, Pleburan, Kec. Semarang Sel., Kota Semarang, Jawa Tengah 50241, INDONESIA Abstract: - Employee performance is primarily the result of achievements in the workplace. Performance refers to sticking to plans while aiming for results. The study used a systematic literature review (SLR) to understand the factors affecting organizational performance and employee engagement from some literature published in databases of well-known journals such as Emerald, Wiley, Scopus, SAGE, and Google Scholar from 2010 to 2022. The goal is to reflect the factors that influence the impact of employee engagement on organizational performance. The results showed a significant relationship between the effect of employee engagement on organizational performance with p < 0.01. Employee engagement and organizational performance have nine categories: PsyCap, job fit, internal communication, commitment, motivation, Personality, Employee Satisfaction, retention, and Performance. Even though most of the research sources have come from the United States, the study highlighted the relationship between employee engagement and organizational performance, followed by England, China, India, and Spain. The limitation of this study is that this study is limited to subjects that discuss the impact of employee engagement and organizational performance. Key-Words: - Employee engagement, organizational performance, systematic review Received: June 6, 2022. Revised: September 14, 2022. Accepted: September 29, 2022. Available online: October 21, 2022. 1 Introduction Human resources (HR) are an important asset for the growth of the organization [1]. HR also impacts organizational performance, which needs evaluation of its effectiveness. One factor contributing to the organization's success is employee engagement [2]. The results of studies by Albdour & Altarawneh [3] explained that employee engagement is the greatest predictor of organizational commitment and increased loyalty. This is confirmed by Gunlu et al.[4], who found that if a person's level of organizational commitment increases, it will be followed by engagement rates, job satisfaction, and performance. In another study, Dajani & Zaki [5] described engagement as related to job satisfaction, engagement, lack of turnover intention, and organizational commitment by demonstrating a positive attitude at work. The employees involved in the organization will behave productively, will show joy, happiness, and enthusiasm, and can manage their work well. However, this situation is also impacted by their workplace interaction. Workplace interaction was first conceptualized by Syam & Arifin [7] that positive feelings and greater enthusiasm for work can result in employee engagement. Employees with high engagement perform better is because they have positive feelings and do not make their work a burden. Balwant [8] found a positive relationship between employee engagement and organizational performance. This means that employees with high employee engagement will have low intention to leave the organization, increased performance, profitability, growth, and customer satisfaction. Although Demerouti et al.[9] agreed with the perception of engagement as the opposite of burnout, burnout itself can be seen as a phenomenon that occurs as a syndrome of emotional exhaustion, depersonalization, and low self-esteem at work. In this situation, employees no longer feel the same commitment to work, creating a negative attitude towards the quality of work and service, violations by employees, and doing business in the organization [10]. In this situation, employee engagement is divided into three parts: firstly, vigor, WSEAS TRANSACTIONS on BUSINESS and ECONOMICS DOI: 10.37394/23207.2023.20.20 Nurul Imani Kurniawati, Edy Raharja E-ISSN: 2224-2899 203 Volume 20, 2023