Linking Job Challenges to Job Engagement and Job Insecurity in Indonesian Start-Ups

Start-up companies in Indonesia have encountered fast expansion and are disrupting various sectors; however, critical challenges such as financial instability and talent retention often lead to heightened job challenges and uncertainty for employees. This study aims to examine the influence of job challenges on job engagement and job insecurity among employees in Indonesian start-ups. A quantitative research design was employed using structural equation modeling–partial least squares (SEM-PLS), data collected via an online survey from 198 respondents working in Indonesian start-up companies, and analyzed with SmartPLS software. While most literature focuses on how job insecurity impacts job engagement, this study reverses the direction, examining how job engagement and job challenge impact job insecurity. The results indicate that job challenges significantly influence both job engagement and job insecurity, whereas job engagement does not significantly affect job insecurity. These findings underscore the dual nature of job challenges as both a source of motivation and a contributor to psychological strain. The study offers theoretical contributions to the limited research on job insecurity within entrepreneurial contexts in emerging markets. It provides practical insights for start-up leaders seeking to balance innovation demands with employee well-being.