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Research Article | Volume 1 Issue 1 (July-Dec, 2020) | Pages 1 - 10
Effect of Employee Compensation and Competency on Employee Performance with Job Satisfaction as a Mediation Variables at the Central Bkkbn Office Jakarta
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1
Universitas Krisnadwipayana Campus Unkris Jatiwaringin, Jat CM Jakarta, Indonesia
Under a Creative Commons license
Open Access
Received
Aug. 16, 2020
Revised
Sept. 14, 2020
Accepted
Oct. 22, 2020
Published
Nov. 20, 2020
Abstract

This study analyzes compensation and competence on employee performance with job satisfaction as a mediating variable. The sampling technique uses the Slovin formula. This form of sampling is based on proportions in the sample regions, with the sample proportionally. Analysis of the data used path analysis. The results showed that together it was proven that the higher compensation and employee competence, employee job satisfaction and employee performance would increase, partially on all variables also confirmed that the better the compensation, competence would increase the level of employee satisfaction and employee performance, partly again proved that the higher the level of employee satisfaction, the better the level of employee performance. The job satisfaction of BKKBN employees is not an intervening variable to the increase in the provision and improvement of compensation systems and competencies towards improving employee performance.     

Keywords
INTRODUCTION

Managing human resources in the organization is very important to be a priority in management. The era of the industrial revolution 4.0 demands that workers currently have adequate capabilities to improve the quality of human resources. Referring to the 2012-2013 Global Competitiveness Report data (for overall index), Indonesia is in 50th place out of 144 countries or 4 worse than the position in the 2011-2012 period, which is in 46th position out of 144 countries  [1]. This discussion of competitiveness is not in terms of production output but the names of the quality of human resources or workers' performance level.

                

The performance of employees in Indonesia, especially the public sector, continues to be in the spotlight. Current government performance is measured through performance appraisals of government agencies conducted by the Ministry of Administrative Reform and Bureaucratic Reform (KEMENPAN and RB). This annual assessment aims to determine the extent to which government agencies have implemented the achievement of objectives while at the same time encouraging increased accountability for performance. This evaluation is expected to encourage government agencies at the central and regional levels to consistently improve agencies' performance as mandated in the National Medium Term Government Plan (RPJMN). The accountability score is divided into seven categories, from AA (very satisfying) to D (very poor). In general, the Ministry of PAN and Bureaucratic Reform assesses that the achievement of accountability for ministries/agencies' performance seems to be improving. However, the proportion of institutions that fall into the excellent category from the Ministry of PAN and Bureaucratic Reform assessment is still far below the superb type.

 

According to Widodo, many factors can affect performance either directly or indirectly, including work motivation, facilities and infrastructure, compensation systems, job satisfaction, organizational culture, leadership, and individual competence. If all of these things can   be   carried   out   properly, employee    performance organization concerned legally, does not violate the law, and is following morals or ethics  [2]. Rivai and Sagala [3] state that performance refers to success in carrying out tasks and achieving predetermined goals. In other words, the version is the work performed by a person in carrying out the tasks assigned to him following established criteria. The National Population and Family Planning Board (BKKBN) is a government agency appointed by the government through Law No. 52 of 2009, carrying out determining policies and strategies in the Field of Population, Family Planning, and Family Development (KKBPK). BKKBN carries out the primary function of formulating the Population, Family Planning, and Family Development programs' policies and implementation. Therefore, the BKKBN, as a State Institution in carrying out its duties, must also manage employees of 647 State Civil Servants (ASN) who have different educational backgrounds and competencies. Especially after January 1, 2018, the BKKBN was again mandated to manage 15,000 functional field workers, commonly called Family Planning Field Officer / Family Planning Field Extension Officer (PKB / PLKB). Guided by the vision and mission of development 2015-2019, namely "the realization of an Indonesia that is sovereign, independent and with a personality based on cooperation," it is necessary to have an effective and efficient BKKBN employee performance. To create an effective ancient BKKBN employee performance, one way is to provide compensation to employees who have done a job. According to Hasibuan [4], balance is all income in money, direct or indirect goods received by employees as compensation for the organization's services. Meanwhile, Fajar and Heru [5] define that balance is all extrinsic rewards received by employees in the form of wages or salaries, incentives or bonuses, and some allowances. Compensation is significant for employees to stimulate someone to do work beyond what the organization wants. Payment is expected to be a stimulus in encouraging workers to carry out work according to the organization's goals and targets. Thus, compensation becomes essential with employee performance. The fact shows that balance has a significant effect on performance. Besides, this study also illustrates that the better the compensation system for employees will increase satisfaction and, in the end, will increase individual performance. The research results support this condition by Alwan and Djastuti [6], which states an influence between compensation on employee performance through job satisfaction.

                

Performance management and improvement are also carried out through employee competency enhancement. Palan [7] defines competence as the essential characteristics of a person who has a relationship with the reference criteria for effectiveness or excellence in a particular job or situation. The implication of employee competence on performance can be seen from the description that employee competence in the form of essential Knowledge and skills of an employee can be a significant asset in achieving organizational goals. Employee competence in Indonesia continues to be under the spotlight, especially in terms of employees' ability and expertise to hold certain positions. A survey conducted by the State Civil Service Agency (BKN) in 2017 showed that ASN's level of competency was still low. This survey was conducted in 396 agencies, namely 26 provinces, 295 districts, and 75 cities, with the result that only 7.04% of administrators had high potential and competence. Meanwhile, 32.28% of moderate competence and the rest are still at low potential and competence. When the administrator position was projected to JPT Pratama, only 1.13% had high competency and potential, and 69.92% of administrator officials had low competence, and the rest had medium potential ".

 

Meanwhile, for JPT Pratama, only 4.17% were considered competent and high potential. Meanwhile, 37.21% were in low and medium competence. The conditions above illustrate that there is an influence between competence and employee performance. The better the competence the employee has, the higher the resulting performance will be. Job competence that is following the field of work of an employee can improve employee performance because competence is one factor that supports employee job satisfaction, which can improve employee performance. Priyono et al. [8] also stated a significant influence between competence on employee performance through job satisfaction as mediation.

 

Employee performance improvement can also be made through the formation of job satisfaction for employees. Job satisfaction shows employees' attitude towards their work so that people with high levels of satisfaction show a positive attitude while people who are not satisfied show a negative attitude towards their work. Hasibuan[4] states that job satisfaction is a pleasant emotional attitude, and he loves his job. This attitude is reflected in work morale, discipline, and work performance. Job satisfaction is a condition of feeling happy for the individual for the position job he has. The dimensions of satisfaction include an optimistic attitude and love for work, a moral attitude at work, an attitude of discipline at work and conditions of work performance [4]. By increasing employee job satisfaction, it will improve employee performance in the end. Job satisfaction conditions for employees will affect employees' requirements in doing their jobs, which in turn creates an increase in employee performance.

 

Besides improving employee performance, compensation and competence can also improve employee performance through job satisfaction as a mediating variable. In line with this, research conducted by Alwan and Djastuti [6] states that there is a significant influence between compensation on performance and job satisfaction as an intervening variable. Meanwhile, research conducted by Prasyanto [9] says that there is a positive and significant influence between competence on performance and job satisfaction as an intervening/mediation. The description above shows that job satisfaction affects employee performance both as a direct binding variable and as mediation or intervening agent on employee performance. Sutrisno [10] states that the more aspects of work that are following the wishes of the individual, including appropriate compensation, the higher the level of satisfaction he feels; on the contrary, the fewer aspects of work that are following individual desires, the more low level of satisfaction that he feels.

 

Literature Review

Performance: Performance is a work result that can be achieved by a person or group of people in an organization both qualitatively and quantitatively following their respective authorities and responsibilities to achieve the goals of the organization concerned legally, does not violate the law, and is following morals or ethics [2]. Meanwhile, according to Mangkunegara performance comes from the word job performance or actual performance (job performance or real achievement someone has achieved). The definition of performance is the quality and quantity of work performed by an employee in carrying out his duties according to the responsibilities assigned to him. Version is the result of a process that refers to and is measured over a certain period based on the terms and agreements that have been previously set (Edison) [11].

 

Performance can also be interpreted as work performance or work implementation or performance results [12]. August W. Smith added that "Performance is output derives from processes, human otherwise," which means that performance is the result of a process carried out by humans [12]. Meanwhile, Torang [13] says, "Performance is the quantity and quality of the work of an individual or group within the organization in carrying out the main tasks and functions that are guided by the norms, standard operating procedures, criteria and measures that have been set or are applicable in the organization." Performance is closely related to achieving goals through adequate processes.

 

In general, performance is the face and image of employees reflected in an organization, but in the correct application, it is not easy because human nature consists of various characteristics and has different feelings, features, and abilities [14]. In the end, in general, employee performance can be interpreted as the entire work process of an individual whose results can be used as a basis for determining whether the individual's job is good or vice versa [15].

 

In its implementation, organizations need to set key performance targets that must be achieved by each individual or group or what in today's digital era are called Key Performance Indicators (KPIs). Iveta explains that key performance indicators are quantitative and gradual measures for companies with various perspectives and are based on factual data, and become the starting point for setting goals and formulating organizational strategies.

 

According to Kasmir [16], there are six indicators used to measure employee performance, namely:

 

  • Quality, quality is a level where the process or result of completing an activity approaches the point of perfection
  • Quantity, to measure performance can also be done by looking at the quantity (amount) produced by a person
  • Time, for certain types of work, a time limit is given to complete the job
  • Cooperation between employees, performance is often associated with collaboration between employees and between leaders
  • Emphasis on costs, costs incurred for each company activity have been budgeted before the action is carried out
  • Supervision, by supervising employees will feel more responsible for their work, and if there is a deviation, it will make it easier to make corrections

 

Compensation

Discussing compensation theory, we first describe compensation. According to Hasibuan [4], balance is all income in money, direct or indirect goods received by employees as compensation for the company's services. Fajar and Heru [5] define that balance is all extrinsic rewards received by employees in the form of wages or salaries, incentives or bonuses, and some benefits. Extrinsic rewards are rewards that are controlled and distributed directly by the organization and are tangible in nature. Based on this definition, we understand that compensation is the organization's income for workers for services and products produced in their work, both material and non-material.

                

Effective management of workers' compensation is an essential part of human resource management because it helps to encourage workers to work professionally and expertly. Menururt Wibowo [17] payment is the number of packages that the organization offers to workers to use its labor. The excellent and relevant balance will significantly affect the morale and productivity of a person. Professional compensation arrangements need to be supported by acceptable methods and can create compensation for someone according to their job. Also, the organization's compensation arrangement has an impact on performance targets. According to Handoko [18], compensation is anything that employees receive in return for their work. Compensation programs are also crucial for the organization because they reflect the organization's efforts to maintain human resources. According to Nawawi [19], compensation is an award/reward for workers who have contributed to realizing their goals through work activities. Payment is anything that employees receive in return for their work. The compensation system's management and arrangement will affect employee performance by increasing employee motivation and job satisfaction.

 

In another part, Milkovich and Newman [20] state that compensation relates to all forms of financial remuneration and tangible services and benefits received by employees as part of an employment relationship. Based on this description, it can be concluded that compensation is a real reward and is given by the organization to its employees for having fulfilled all their duties. Payment can be financial or non-financial. Balance in monetary forms of salary, wages, bonuses, commissions, employee insurance, employee social assistance, allowances, holidays, or paid leave, while in non-financial records, in interesting tasks, challenges, job responsibilities, opportunities, recognition, the environment. Interesting work. According to Hersey and Blanchard (Muljani) [21], for groups of employees who have guaranteed physiological needs and a sense of security, intrinsic rewards to increase their self-esteem  are  the  main  drivers'  work.

 

Based on the explanation above, it is known that giving employees compensation to maintain their resources consistently, the better the balance, the better the employee's performance because the motivation to work also increases. To describe in more detail, the following compensation indicators, according to Hasibuan [4] where it is generally stated that the hands of compensation include:

 

  • Salary/wages is money given every month to employees as remuneration for their contribution and is also based on working hours
  • Incentives are financial rewards given directly to employees whose performance exceeds the specified standards
  • Allowances, which are compensation given to individual employees as a reward for their sacrifice.
  • Facilities are means of support provided by the organization

 

Competence

The importance of human resources in an organization makes competence one of the critical aspects of an organization's successor company. Every organization, both public and private, is formed to achieve specific goals, and if it is completed, it can be said to be successful. Palan [7] states that competence can be defined as a person's essential characteristics with a relationship with the reference criteria for effectiveness and excellence in a particular job or situation. The meaning of competence here is the ability to carry out or perform a job or task based on skills and Knowledge and is supported by the work attitude demanded by the job.

 

The definition of competence from Wibowo [17] states that competence is the ability to carry out or perform a job or task that is based on skills and Knowledge and is supported by the work attitude demanded by the job; thus, competence shows the skills or Knowledge that are characterized by professionalism in a particular field as the most important thing, as the superiority of that field. According to Boulter et al. in Sutrisno [10], competence is a primary characteristic of a person that enables him to provide superior performance in a particular job, role, or situation. Competence is an individual characteristic that underlies performance or behavior in the workplace. Knowledge, abilities, attitudes influence individual performance in organizations, and styles of apes, personalities, interests/interests, basics, values ​​of attitudes, beliefs, and leadership styles (Wibowo)[17]. Based on the opinions above, competence is essential in organizations that want to progress and develop.

 

Individual competence is the ability and skills to do work. Each person's competence is influenced by several factors that can be grouped into knowledge and work skills, motivation, and work ethic (Simanjuntak)[22]. In line with the locus of this research, Sutrisno [10] describes that: "Competence in public organizations is needed, especially to answer the demands of the organization, where there are speedy changes, the development of very complex and dynamic problems and the uncertainty of the future in the order of people's lives." (Sutrisno)[10]. Furthermore, another expert stated that competence concerns a person's fundamental ability to do work [3]. In another section, it is said that many government agencies have not had employees with adequate competence so far. This is evidenced by employees' low productivity and the difficulty of measuring employee performance [23].

 

The concept/competency variables are defined operationally as follows: job competence is defined as the ability of Knowledge and skills/skills possessed by an employee/apparatus relevant to the job, whatever the job is. This variable/concept is operationalized through the following indicators: Capability, willpower, experience ability. Competence is the ability and willingness to perform a task with an effective and efficient performance to achieve company goals [24]. Competence is a characteristic that underlies a person concerning the effectiveness of individual performance in their work or the essential elements of individuals who have a causal relationship or as a cause and effect with criteria that are used as references, are useful or have excellent or superior performance in the workplace or specific situations. Competence is the capacity that exists in someone who can make that person able to fulfill what is required by work in an organization to achieve the expected results [24]. According to Prawironegoro and Utari [25], competence is a combination of skills, knowledge, creativity, and a positive attitude towards specific jobs manifested in performance. 

 

Based on the description above, it is clear that competence is an essential factor in management, especially in the public sector. Having a competent apparatus in providing services to the community, the higher the level of public trust in the government, which makes the performance measures of individuals in particular and organizations in general increase. Palan [7] states that character or competency indicators consist of:

 

  • Knowledge refers to information and learning outcomes, such as a surgeon's knowledge of human anatomy
  • Skills, expertise refers to a person's ability to perform an activity, such as a surgeon's expertise to perform operations
  • Self-concept and values. Self-concept and costs ​​refer to one's attitudes, values ​​, and self-image. An example would be self-confidence, a person's belief that they can succeed in a situation, such as a surgeon's confidence in carrying out a complicated operation
  • Personal characteristics. Personal characteristics refer to the physical characteristics and consistency of responses to situations or information. Good vision is a unique characteristic that surgeons need, as are self-control and the ability to remain calm under stress
  • Motives. Motives are emotions, desires, psychological needs, or other drives that trigger action. For example, surgeons with a highly interpersonal orientation take personal responsibility for working closely with other team members

 

Job Satisfaction

Job satisfaction is a form of a person's feelings about his job, work situation, and relationship with his career. Hasibuan [4] stated that "Job satisfaction is a pleasant emotional attitude and loves his job. This attitude is reflected in work morale, discipline, and work performance [4]. Job satisfaction is an important element that must exist in employees' character, with individual job satisfaction being able to relate both to the work environment and other individuals so that work can be carried out properly and following organizational goals. According to Suwatno and Priansa [12], "job satisfaction is the way individuals feel their work which results from the individual's attitude towards various aspects contained in the job." The same definition is also put forward by Wibowo [17], which states that "job satisfaction is the degree of positive or negative feelings of a person regarding various aspects of job duties, workplaces and relationships with fellow workers." Meanwhile, another opinion states that "job satisfaction is a pleasant or unpleasant emotional state with which employees view their work" [18]. This condition is a description, resulting actions between what is obtained and what the employee wants. Meanwhile, another opinion about job satisfaction was put forward by According to Sutrisno [10], job satisfaction is quite an exciting and essential issue because it has proven to be of great benefit to the interests of individuals, industry, and society. For individuals, research on the causes and sources of job satisfaction allows efforts to increase their happiness in life.

 

Richard et al. [26] emphasize that job satisfaction is related to a person's feelings or attitudes about the job itself, salary, promotion or education opportunities, supervision, co-workers, workload, and others. He continued his statement that job satisfaction is related to a person's attitude about work, and several practical reasons make job satisfaction an essential concept for leaders. When job satisfaction occurs, employees will show a positive attitude towards all their job in the work environment. Job satisfaction that is felt by employees is generally reflected in the positive attitude of employees towards work and everything that is faced or assigned to them in the work environment. Conversely, if job satisfaction is not achieved, it can harm the company. The destructive consequences can be in the form of laziness, absenteeism, work strikes, a change of workforce, and other harmful consequences. Based on several opinions about the definition of job satisfaction, it can be concluded that job satisfaction is the way individuals feel about work resulting from the individual's attitude towards various aspects contained in the job, which in turn will increase the productivity/performance factor at work.

 

According to Hasibuan [4], indicators of job satisfaction of an employee can be seen from the following: According to Hasibuan [4] indicators of job satisfaction of an employee can be seen from the following: Enjoying his job, employees are aware the direction he is going, has a reason for choosing his goals and understands how to work. In other words, an employee likes his job because he can do it well.

 

  • He loves his job; in this case, the employee does not just like his career but is also aware that the job is following his wishes
  • Positive Moral of Work this is an inner agreement that arises from within a person or organization to achieve specific goals following the quality set
  • Work Discipline is a condition created and formed through a series of behaviors that show the values ​​of obedience, obedience, loyalty, order, and order
MATERIALS AND METHODS

Time and Location of Research

This research took place at the Head Office of the National Population and Family Planning Agency (BKKBN). The time of research was conducted from November 2019 to January 2020.

 

Research Design

This study uses a quantitative approach. According to Sugiyono [27], quantitative research is a research method based on the philosophy of positivism, used to study a specific population or sample, where data collection uses research instruments, data analysis is quantitative/statistical to test predetermined hypotheses. Research places more emphasis on trends in research loci. The following is the research design (Figure).

 

Population and Sample

According to Sugiyono [27], the population is a generalization area consisting of objects/subjects with certain qualities and characteristics determined by researchers to be studied and then draw conclusions. This study's population were all employees of the Central BKKBN, totaling 674 people spread over seven deputies.

                

The sample is part of the number and characteristics possessed by the population. According to Sugiyono [27], the sample's definition is part of the number and features maintained by the community. The model was taken from the population using a tolerable error rate of 7.5%. The research sample was adjusted to be as many as 141 people or about 21.79% of the community.

 

Data Analysis Techniques

In analyzing the respondents' answers to the questionnaire, it is necessary to test the validity, namely the validity test and the reliability test. Furthermore, the questionnaire with valid and reliable instruments will produce a two-way equation model or path analysis. Path analysis is an extension of multiple linear regression analysis (Sarwono)[25]. Path analysis is confirmatory, not explanatory. So, the variables used in the path must be based on theory or at least previous research.

RESULTS

Model Testing

Model testing using path analysis is divided into two stages/substructures. The first stage analyzes the effects of X1, X2 on Y1, while the second stage analyzes the results of X1, X2, and Y1 on Y2.


 

Table 1: Job Satisfaction Regression Analysis Coefficients

ModelUnstandardized CoefficientsStandardized CoefficientsTSig.
BStd. ErrorBeta
1(Constant)20.2984.560 4.4510.000
X10.2290.1000.1832.2880.024
X20.3450.0890.3113.8810.000

NOTE: a. Dependent Variable: Y1

 

Table 2: Coefficient of Determination of Job Satisfaction Model Summary

ModelRR SquareAdjusted R SquareStd. Error of the Estimate
10.393a0.1540.1424.12655

Note: a. Predictors: (Constant), X2, X1

 

Table: 3 Simultaneous Analysis of Fcount ANOVAa

ModelSum of SquaresDfMean SquareFSig.
1Regression429.3642214.68212.6070.000b
Residual2349.92713817.028  
Total2779.291140   

Note: a. Dependent Variable: Y1, b. Predictors: (Constant), X2, X1

 

Table 4:  Employee Performance Regression Analysis Coefficientsa

ModelUnstandardized CoefficientsStandardized CoefficientsTSig.
BStd. ErrorBeta
1(Constant)16.8835.085 3.3200.001
X10.2640.1060.1952.4880.014
X20.3040.0980.2523.1110.002
Y10.2330.0890.2152.6290.010

Note: a. Dependent Variable: Y2

 

Table 5: Employee Performance Determination Coefficient Model Summary

ModelRR SquareAdjusted R SquareStd. Error of the Estimate
1.477a0.2270.2104.30295

Note: a. Predictors: (Constant), Y1, X1, X2

 

Table: 6  Employee Performance Regression Analysis ANOVAa

ModelSum of SquaresDfMean SquareFSig.
1Regression745.2643248.42113.4170.000b
Residual2536.60813718.515  
Total3281.872140   

Note: a. Dependent Variable: Y2,  b. Predictors: (Constant), Y1, X1, X2

 

A diagram of a work flow

AI-generated content may be incorrect.

 

Figure 1: Research Design               

 

First Stage Analysis

To determine the effect of X1 and X2 on Y1, an analysis is produced through the results of the SPSS output as Table 1. Furthermore, to see the value of satisfaction determination can be seen in the Table 2.

 

Rvalue is 0.154, the calculation is as follows:

 

e1 =

 

Based on the results above, the results of the equation are:

 

KEP= 0,183 KPS + 0,311 KPT + 0,919 Ԑ1

 

 

 

Figure 2. First Stage Equations 

 

KEP = 0,183 KPS + 0,919 Ԑ1

 

KEP = 0,311 KPT + 0,919 Ԑ1

 

As for the simultaneous test, the F test results were obtained as Table 3. Based on the results of the above calculations, the F Sig value is 0.000 <0.050. Meanwhile, to describe the results of the first substructure path analysis are as follows Figure 2.

 

Second Stage Analysis

To determine the effect of X1, X2 and Y1 on Y2, the results of the analysis were found through the results of the SPSS output as Table 4.

 

Furthermore, to see the value of employee performance determination can be seen in the following Table 5.

 

Rvalue is 0.227, the calculation is as follows:

 

e1 =

 

Based on the results above, the results of the equation are:KIN=  0,195 KPS + 0,252 KPT + 0,215 KEP + 0,879 Ԑ2

 

KIN = 0,195 KPS + 0,879 Ԑ2

 

KIN = 0,252 KPT + 0,879 Ԑ2

 

KIN=  0,215 KEP + 0,879 Ԑ2

 

Meanwhile, to see the simultaneous effect is obtained through the F test as Table 6.

 

Furthermore, to describe the first substructure path is as follows (Figure 3):

 

Hypothesis Testing

There is a significant simultaneous effect between Compensation and competence on employee job satisfaction at the BKKBN head office.

Based on the results of multiple linear regression calculations, it is known that the path diagram results are as follows (Figure 4):

 

Based on the diagram above, the following equation is obtained:

 

KEP = 0,183 KPS + 0,311 KPT + 0,919 Ԑ2

 

Based on the above equation, it can be concluded that there is an influence between compensation and competence on employee job satisfaction at the Head Office BKKBN with beta coefficient values of 0.183 and 0.311, respectively.

 

Hypothesis 2: There is a Significant Effect between Compensation on Employee Job Satisfaction at Head Office BKKBN

 

The regression equation from the calculation results above is as follows (Figure 5):

 

KEP = 0,183 KPS + 0,919 Ԑ2

 

Based on the above equation, it can be concluded that there is an influence between compensation on employee job satisfaction at the Head Office BKKBN with a beta coefficient value of 0.183.

 

There is a Significant Effect between Competence on Employee Job Satisfaction at the BKKBN Head Office.

 

The regression equation from the calculation results above is as follows (Figure 6):

 

KEP = 0,311 KPT + 0,919 Ԑ2

 

There is a Significant Effect Simultaneously between Compensation, Competence and Job Satisfaction on Employee Performance of BKKBN Head Office

 

KIN = 0,195 KPS + 0,252 KPT + 0,215 KEP + 0,879 Ԑ2

 

According to the equation above, it can be concluded that there is an influence between Compensation, competence, and job satisfaction on employee performance at the BKKBN Head Office with beta coefficient values of 0.195, 0.252, and 0.215, respectively (Figure 7).

 

There is a Significant Effect between Compensation on Employee Performance at BKKBN Head Office

 

The regression equation from the calculation results above is as follows (Figure 8):

 

KIN = 0,195 KPS + 0,879 Ԑ2

 

There is a significant influence between competence on employee performance at the BKKBN head office.

 

Based on the results of the calculation of linear regression in table 4.17, it is known that the calculation results with the path diagram are as follows (Figure 9):

 

The regression equation from the calculation results above is as follows:

 

KIN = 0,252 KPT + 0,879 Ԑ2

 

There is a significant influence between job satisfaction and employee performance at the BKKBN head office.

 

Based on the results of the calculation of linear regression in table 4.17, it is known that the calculation results with the path diagram are as follows (Figure 11):

 

The regression equation from the calculation results above is as follows:

 

KIN = 0,215 KEP + 0,879 Ԑ2

 

There is an influence between Compensation on employee performance through job satisfaction as mediation.

 

The Job Satisfaction (Y1) variable test as an intervening variable is carried out through the following equation:

 

KIN = 0,195 KPS

 

KIN = 0,183 KPS x 0,215 KEP

 

 

The result of multiplying the path coefficient value β Y1X1 with β Y2Y1 is 0.183 X 0.215 = 0.0393. When compared, the indirect effect = 0.0393 is smaller than the direct impact = 0.195, meaning that the job satisfaction variable (Y1) is not an intervening variable between the compensation variable (X1) and the Employee Performance variable (Y2).

 

There is an influence of competition on employee performance through job satisfaction as mediation.

The test for the satisfaction variable (Y1) as an intervening variable is carried out through the following equation:

KIN = 0,252 KPT

 

KIN = 0,311 KPT x 0,215 KEP

 

Multiplying the path coefficient value β Y1X2 with β Y2Y1 is 0.311 X 0.215 = 0.0668. When compared, the indirect effect = 0.0668 is smaller than the direct impact = 0.195, meaning that the job satisfaction variable (Y1) is not an intervening variable between the competency variable (X2) and the employee performance variable (Y2).

 

 

Figure 3: The Second Stage Equation

 

A diagram of a job satisfaction

AI-generated content may be incorrect.

 

Figure 4: Simultaneous Effects of X1 and X2 on Y1

 

A diagram of a job satisfaction survey

AI-generated content may be incorrect.

 

Figure 5: The Effect of Compensation (X1) on Job Satisfaction (Y1)

 

A diagram of a graph

AI-generated content may be incorrect.

 

Figure 6. The Effect of Competence (X2) on Job Satisfaction (Y1)

 

A diagram of a diagram

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Figure 7: Effect of Compensation (X1), Competence (X2) and Job Satisfaction (Y1) on Employee Performance (Y2)

 

 

A diagram of a flowchart

AI-generated content may be incorrect.

 

Figure 8: The Effect of Compensation (X1) on Employee Performance (Y2)

 

A diagram of a flowchart

AI-generated content may be incorrect.

 

Figure 9: The Effect of Competence (X2) on Employee Performance (Y2)

 

 

A diagram of a work flow

AI-generated content may be incorrect.

 

Figure 10: The Effect of Satisfaction (Y1) on Employee Performance (Y2)

CONCLUSION

Based on the results of the data analysis that has been carried out, the conclusions obtained are as follows:

 

  • Taken together, it is evident that the higher the provision and compensation system through wages/salaries and allowances and other facilities, and the better the arrangement of the employee competency improvement system, the job satisfaction of Central BKKBN employees in working will increase.
  • It is also proven that the better the management system and the level of compensation through wages/salaries and allowances and other facilities will increase the level of employee satisfaction in working at the central BKKBN office.
  • It is also proven that the higher the level and system of competency arrangement for employees in organizational units, the higher the satisfaction of employees working at the Central BKKBN.
  • Simultaneously (jointly), it is proven that the higher and better the compensation system is, the better and higher the employee competency system, and the better the level of job satisfaction of BKKBN employees, the better the performance of employees in the BKKBN Central Office environment.
  • It is also proven that the higher and better the employee compensation system through wages/salaries and allowances and other facilities will increase the performance of employees in the BKKBN Head Office environment.
  • It is also proven that the better the competency management system and the higher the competence of employees, the better the level of employee performance in the BKKBN Head Office.
  • It is also proven that the higher the level of employee satisfaction, the better the level of employee performance in the Head Office BKKBN environment.
  • Testing job satisfaction as an intervening variable on the effect of compensation on employee performance shows that job satisfaction of BKKBN employees is not a variable capable of increasing the value of the influence given to increased provision and improvement of the compensation system on improving the performance of BKKBN Headquarters employees.
  • Job satisfaction testing as an intervening variable on the influence of competence on employee performance shows that job satisfaction of BKKBN employees cannot increase the value of the effect given to system improvement and employee competence on improving the performance of BKKBN Headquarters employees

 

Suggestion

Based on the conclusions of the research results above, we advise the leaders and management of the Head Office BKKBN to:

 

  • Maintain and improve the system and provision of compensation by increasing the provision of salaries, allowances, and other supporting facilities for employees to enhance job satisfaction and performance of BKKBN Head Office employees.
  • Maintain and improve the system and increase employee compensation through competency enhancement activities within and outside the BKKBN institution and the placement of employees according to their competencies to increase job satisfaction and employee performance of the Head Office BKKBN.
  • To improve employee performance, which will impact organizational performance, management must pay attention to employee satisfaction levels periodically by facilitating employee desires related to work and evaluating employee job satisfaction improvements in the BKKBN environment.
  • BKKBN employees to carry out work following the main tasks and functions that have been technically cascaded into Employee Performance Targets (SKP) to support BKKBN organizational goals in general and work units in particular
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