The Effect Of Compensation On Employee Performance At PT. Carsurindo Superintendent Medan

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The Effect of Compensation on Employee Performance at PT. Carsurindo Superintendent Medan

Introduction

In today's competitive business landscape, employee performance is a crucial factor that determines the success of an organization. One of the key drivers of employee performance is compensation, which includes salary, incentives, and benefits. The purpose of this study is to investigate the effect of compensation on employee performance at PT. Carsurindo Superintendent, a leading company in the Medan region. This study aims to provide insights into the relationship between compensation and employee performance, and to identify the key factors that influence employee performance.

Background of the Study

PT. Carsurindo Superintendent is a leading company in the Medan region, with a strong presence in the market. The company has a diverse range of employees, including marketing and surveyor staff, who play a critical role in driving the company's success. However, the company faces challenges in retaining and motivating its employees, which can impact employee performance. The company's compensation package is a critical factor that can influence employee performance, and this study aims to investigate the effect of compensation on employee performance.

Methodology

This study used a quantitative descriptive approach with multiple linear regression to analyze the data. The research population consisted of 32 employees who work as marketing and surveyor staff at PT. Carsurindo Superintendent. The data used in this study consisted of primary data and secondary data. The primary data was collected through a survey, while the secondary data was obtained from the company's records. The data analysis method used was quantitative descriptive with multiple linear regression.

Results

The results of this study indicate that compensation, which consists of salary, incentives, and benefits, has a positive and significant influence on employee performance at PT. Carsurindo Superintendent. This is evidenced by the F test, where the value of F count is greater than the F table (179,105> 2.95). In addition, the results of the determination coefficient (R²) test showed a value of 0.945 or 94.5%. This means that the dependent variable (performance) can be explained by independent variables (salary, incentives, and benefits) of 94.5%. Meanwhile, the remaining 3.5% can be explained by other factors that are not explained in this study.

Discussion

The effect of compensation on employee performance is a crucial issue in human resource management. Providing fair and competitive compensation can not only increase employee motivation, but can also affect their level of retention and job satisfaction. In the context of PT. Carsurindo Superintendent, a high coefficient of determination shows that the majority of employee performance can be influenced by the compensation they receive. This indicates that companies need to continue to consider effective compensation policies to support better performance achievement.

In addition, analysis through multiple linear regression also highlights the importance of each compensation component. Competitive salary can attract quality workforce, while good incentives can encourage employees to achieve higher targets. Allowances also play an important role in providing a sense of security and support for employees in carrying out daily tasks.

Conclusion

This study provides insights into the effect of compensation on employee performance at PT. Carsurindo Superintendent. The results of this study indicate that compensation has a positive and significant influence on employee performance. This study also highlights the importance of each compensation component, including salary, incentives, and benefits. The findings of this study have implications for human resource management, and suggest that companies need to continue to consider effective compensation policies to support better performance achievement.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • PT. Carsurindo Superintendent should continue to evaluate and renew their compensation packages to adjust to employee needs and expectations.
  • The company should consider implementing a competitive salary structure to attract quality workforce.
  • Good incentives should be provided to encourage employees to achieve higher targets.
  • Allowances should be provided to provide a sense of security and support for employees in carrying out daily tasks.

Limitations of the Study

This study has several limitations. Firstly, the study only focused on the marketing and surveyor staff at PT. Carsurindo Superintendent, and did not consider other employees in the company. Secondly, the study only used a quantitative descriptive approach, and did not consider other research methods. Finally, the study only considered the effect of compensation on employee performance, and did not consider other factors that may influence employee performance.

Future Research Directions

This study provides a foundation for future research on the effect of compensation on employee performance. Future studies can consider other research methods, such as qualitative research, to provide a more comprehensive understanding of the effect of compensation on employee performance. Future studies can also consider other factors that may influence employee performance, such as job satisfaction, motivation, and retention.

Conclusion

In conclusion, this study provides insights into the effect of compensation on employee performance at PT. Carsurindo Superintendent. The results of this study indicate that compensation has a positive and significant influence on employee performance. This study also highlights the importance of each compensation component, including salary, incentives, and benefits. The findings of this study have implications for human resource management, and suggest that companies need to continue to consider effective compensation policies to support better performance achievement.
Frequently Asked Questions (FAQs) about the Effect of Compensation on Employee Performance at PT. Carsurindo Superintendent Medan

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of compensation on employee performance at PT. Carsurindo Superintendent, a leading company in the Medan region.

Q: What is the research population of this study?

A: The research population of this study consists of 32 employees who work as marketing and surveyor staff at PT. Carsurindo Superintendent.

Q: What is the data analysis method used in this study?

A: The data analysis method used in this study is quantitative descriptive with multiple linear regression.

Q: What are the key findings of this study?

A: The key findings of this study indicate that compensation, which consists of salary, incentives, and benefits, has a positive and significant influence on employee performance at PT. Carsurindo Superintendent. The results of the determination coefficient (R²) test showed a value of 0.945 or 94.5%, which means that the dependent variable (performance) can be explained by independent variables (salary, incentives, and benefits) of 94.5%.

Q: What are the implications of this study for human resource management?

A: The findings of this study have implications for human resource management, and suggest that companies need to continue to consider effective compensation policies to support better performance achievement.

Q: What are the recommendations of this study for PT. Carsurindo Superintendent?

A: The recommendations of this study for PT. Carsurindo Superintendent are:

  • Continue to evaluate and renew their compensation packages to adjust to employee needs and expectations.
  • Consider implementing a competitive salary structure to attract quality workforce.
  • Provide good incentives to encourage employees to achieve higher targets.
  • Provide allowances to provide a sense of security and support for employees in carrying out daily tasks.

Q: What are the limitations of this study?

A: The limitations of this study are:

  • The study only focused on the marketing and surveyor staff at PT. Carsurindo Superintendent, and did not consider other employees in the company.
  • The study only used a quantitative descriptive approach, and did not consider other research methods.
  • The study only considered the effect of compensation on employee performance, and did not consider other factors that may influence employee performance.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are:

  • Consider other research methods, such as qualitative research, to provide a more comprehensive understanding of the effect of compensation on employee performance.
  • Consider other factors that may influence employee performance, such as job satisfaction, motivation, and retention.

Q: What are the benefits of this study for PT. Carsurindo Superintendent?

A: The benefits of this study for PT. Carsurindo Superintendent are:

  • The study provides insights into the effect of compensation on employee performance, which can help the company to make informed decisions about their compensation policies.
  • The study highlights the importance of each compensation component, including salary, incentives, and benefits, which can help the company to allocate their resources effectively.
  • The study provides recommendations for the company to improve their compensation policies, which can help to increase employee motivation and retention.

Q: What are the benefits of this study for human resource management?

A: The benefits of this study for human resource management are:

  • The study provides insights into the effect of compensation on employee performance, which can help human resource managers to make informed decisions about their compensation policies.
  • The study highlights the importance of each compensation component, including salary, incentives, and benefits, which can help human resource managers to allocate their resources effectively.
  • The study provides recommendations for human resource managers to improve their compensation policies, which can help to increase employee motivation and retention.