This study aims to determine the effect of Islamic leadership and internal marketing on employee performance, employee performance on employee welfare, Islamic leadership and internal marketing on employee welfare, the dominant influence on employee welfare, the appropriateness of the application of internal marketing and Islamic leadership based on Islamic law. The sample in this study was 107 permanent employees who carried out marketing activities and worked at Islamic Banks (Bank Muamalat and Bank Syariah Mandiri) for a minimum of five years, namely the period of 2015 to 2019 in East Java, Indonesia. Analysis technique using Partial Least Square. The results of this study indicate that Internal Marketing and Islamic Leadership influence Employee Performance. Employee performance affects employee welfare. Internal marketing has no effect on employee welfare at Islamic banks. Islamic leadership has a significant positive effect on employee welfare at Islamic Banks.
Key words: Islamic Leadership, Internal Marketing, Employee Performance, and Employee Welfare
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