The Effect Of Compensation On Employee Performance With Work Motivation As An Intervening Variable At The Dairi Regency Tourism, Culture, Youth And Sports Office

Authors

  • Syahyunan Universitas Pembangunan Panca Budi
  • Abdi Sugiarto Universitas Pembangunan Panca Budi

Keywords:

compensation, work motivation, Employee Performance

Abstract

Providing appropriate compensation has an important role in improving employee motivation and performance in the work environment. This study aims to analyze the effect of compensation on employee performance through work motivation as an intervening variable at the Dairi Regency Tourism, Culture, Youth, and Sports Office. Using a causal associative quantitative method, this research was carried out at the Dairi Regency Tourism, Culture, Youth, and Sports Office with a total of 96 respondents. The results of the analysis show that compensation has a significant effect on work motivation and employee performance, as evidenced by the T-Statistic value of 27.267 > 1.96 and the P-Value of 0.000 < 0.05 for the effect of compensation on motivation. In addition, work motivation is also proven to have a significant influence on employee performance, with a T-Statistic value of 6.764 > 1.96 and a P-Value of 0.000 < 0.05. In Indirect Influence, it was obtained that motivation was able to intervene the influence between compensation and employee performance. This can be seen from the results of the T-Statistical value of 6.274 > 1.96 with a P-Value of 0.000 < 0.05. This shows that there is an indirect influence between compensation and employee performance through motivation. The implications of these results suggest that organizations, especially government agencies, need to consider compensation policies that include not only salaries and benefits but also other forms of compensation such as non-financial rewards to improve employee motivation and performance. An effective and adequate compensation policy, accompanied by a work environment that supports motivation, will create a synergistic effect that can increase employee productivity and loyalty.

References

Afandi. (2018). Human Resource Management: Theory of Concepts and Indicators. Zanafa Publishing.

Akbar, Mada Faisal, et al. (2021). Human Resource Management Seminar. Scholar Personnel.

Ashary, O. W. (2022). The Effect of Compensation on Employee Job Satisfaction through Work Motivation as an Intervening Variable in Goodfellas Barbershop Employees. Journal of Management Science, 10.

Blanka, C., Krumay, B., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. https://doi.org/10.1016/j.techfore.2022.121575

Darmawan. (2022). Human Resource Management. Media Discourse Partners.

Fatimah, N., & Ratnasari, Y. (2017). The Effect of Compensation on Job Satisfaction and Its Impact on the Performance of Marketing Employees at PT. Diparanu Rucitra Property Surabaya. 1(1).

Fauzi, A., Rizki Utami, A., Rahmaviani, L., Bonita, R., Pangestu, S., Robbiatul Adawiah, S., & Syahputra, P. A. (2022). Factors Influencing Career Development: Education, Training and Motivation (Performance Management Literature Review). Journal of Multidisciplinary Sciences, 1(3), 717–732. https://doi.org/10.38035/jim.v1i3.98

Ghozali & Latan. (2015). Concept, Technique, Application Using Smart PLS 3.0 for Empirical Research. BP Undip. SemarangHarnanto. 2017. Cost Accounting: Historical Cost Systems. BPFE.

Ghozali, Imam & Latan, H. (2015). Partial Least Squares "Engineering Concepts and Applications Using the Smart PLS 3.0 Program." Diponegoro University.

Handoko, T. Hani. (2020). Human Resources Personnel Council. BPFE,.

Hasibuan, Malayu SP. (2017). Human Resource Management. Bumi Aksara.

Kuncooro, Munajad. (2013). Research Methods for Business and Economics. Edition 4. Erlangga.

Mangkunegara. (2017). Corporate Human Resource Management. Remaja Rosdakarya.

Mangkunegara. A.A. P. (2020). Agency Human Resource Management. XIV Edition. PT. Remaja Rosdakarya.

Robbin, & Judge. (2015). Organizational Behavior. Salemba Four.

Robbins & Judge. (2017). Organizational Behavior (17th ed). Pearson Education.

Rulianti, E., & Nurpribadi, G. (2023). The Influence of Work Motivation, Work Environment and Career Development on Employee Job Satisfaction. Jesya, 6(1), 849–858. https://doi.org/10.36778/jesya.v6i1.1011

Rusman. (2022). Challenges of Human Resources in the Era of Globalization. Scientific Journal of Management Sciences, 1(2).

Siagian, A. O. (2023). The Influence of Leadership, Motivation, Discipline, and Wages on the Performance of Bank BNI Syariah Indonesia Employees.

Sugiyono. (2018). Mixed Methods. CV. Alfabeta.

Sugiyono. (2019). Quantitative and Qualitative Research Methodologies and R&D. Alphabeta.

Suryani, N. K., Warmana, G. O., & Wiguna, I. N. A. (2021). The Influence of Competence and Use of Technology on Employee Performance. Journal of Imagine, 1(1), 1–11. https://doi.org/10.35886/imagine.v1i1.159

Sutrisno, E. (2017). Human Resource Management. Kencana Prenada Media Group.

Tremblay, M. A., Blanchard, C. M., Taylor, S., Pelletier, L. G., & Villeneuve, M. (2009). Work Extrinsic and Intrinsic Motivation Scale: Its value for organizational psychology research. Canadian Journal of Behavioural Science / Revue Canadienne des Sciences du Comportement, 41(4), 213–226. https://doi.org/10.1037/a0015167

Wandi, D., Kahpi, H. S., Fidziah, F., & Abidin, Z. (2022). The Effect of Compensation on Employee Performance in a Delivery Service Company in Serang City, Indonesia. Journal of Management and Business Review, 19(1), 80–91. https://doi.org/10.34149/jmbr.v19i1.235

Wibowo. (2017). Performance Management. Fifth Edition. PT. King Grafindo Persada.

Downloads

Published

18-02-2025

Issue

Vol. 3 No. 1 (2025): February 2025

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

COPYRIGHT

 Copyright on any article in the International Journal of Management, Economic and Accounting  is fully held by the author under a  Creative Commons Attribution-ShareAlike 4.0 International License.

  1. The author acknowledges that the International Journal of Management, Economic and Accounting has the right to publish for  the  first time with a Creative Commons Attribution-ShareAlike  4.0 International License -  CC BY-SA license.
  2. Authors can enter articles  separately, arrange non-exclusive distribution of manuscripts  that have been published in  this journal into other  versions (eg: sent to institutional respository  of  authors, publications into books, etc.),  by acknowledging that the  manuscript has been first published  in the  National Journal of Computer Technology (JNASTEK).

LICENSE
The International Journal of Management, Economic and Accounting is published under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License. This license  permits any  person to copy and redistribute  this material  in any form or format, modify, alter  , and create derivatives of  this material    for  any purpose, including commercial interests,  as  long as they credit the  author for the original work.