Assessing The Quality of Human Resources in Sharia Rural Banks: Evidence From North Sumatra

Abstract

The growth of Sharia Rural Banks (BPRS) in North Sumatra—such as BPRS Amanah Insan Cita, BPRS Al Washliyah, BPRS Puduarta Insani, BPRS Sindanglaya, BPRS Gebu Prima, and BPRS Amanah Bangsa—demonstrates the increasing demand for Islamic financial services at the grassroots level. However, the sustainability and success of these institutions are closely tied to the quality of their human resource management. Without a robust and values-driven human capital strategy, it is unlikely that these banks can fulfill their role as ethical financial intermediaries. This study aims to explore the key factors influencing the quality of human resources in BPRS institutions in North Sumatra, focusing on three main predictors: occupational health and safety, intellectual capability, and spiritual strength. These variables are assessed in relation to employee performance as a mediating factor and service quality as the ultimate outcome. Using a quantitative approach and structural equation modeling (SEM), the findings suggest that the integration of workplace well-being and spiritual resilience significantly contributes to service excellence when mediated by employee performance. However, intellectual factors require a more nuanced understanding, as their influence may not directly translate into improved service quality without supportive organizational conditions. The study concludes that the integration of health, intellectual, and spiritual dimensions is not merely a managerial tactic but a holistic philosophy aimed at fostering dignity-driven economic development.