Abstract

Digital transformation is currently become a very important agenda in the Indonesian Banking Industry. It essential for companies, to be more agile in highly competitive market. As in early 2020, disruptive conditions caused by Covid 19 pandemic, accelerate the need for transformation, as customer prefers digital transactions than traditional ones, but this conditions create its own challenges for banking sector workers. In this phase, companies need commitment, engagement, and also support from employees. However , the emergence of various uncertainties due to technological change can cause high levels of work stress. Work stress will directly affect employee engagement and ultimately will jeopardize organizational performance. This research was conducted at a Private Bank in Indonesia with 448 respondents located in Jakarta, that have made radical technology-based changes for 1 year. This research uses a quantitative approach with SEM PLS method, with 25 indicators from various international journals. The results showed the 25 indicators used in this study were able to develop each of the latent variables, and illustrates that work stress has a negative effect on employee engagement, and as implication, further research was proposed on the issues discussed.