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The Effect of Work Motivation and Compensation on Employee Performance at My Carnivlora Plant Shop
Surabaya
Adinda Ayu Wulandari, I Putu Artaya, Rossa Adinda Saputri Departement of Management, Narotama University Surabaya
Jl. Arief Rachman Hakim No. 51, Surabaya, Indonesia
[email protected], [email protected], [email protected]
Abstract
This study aims to determine: (1) the effect of work motivation on the performance of employees of the My Carnivlora Surabaya plant store, (2) the effect of compensation on the performance of employees of the My Carnivlora Surabaya plant store, and (3) the influence of work motivation and compensation on the performance of employees of the My Carnivlora Surabaya plant store. This research uses a quantitative approach. The subjects of this study were 45 employees at the Art Studio Printing House. Data collection used questionnaires and interviews while data analysis was carried out using multiple linear regression analysis.
Keywords :
Compensation, Employee Performance, Work Motivation
1. Introduction
Human Resource Management is an important thing that must be considered by the company. Human resources are the driving force of the company's course as well as the most important asset for the company. The goal of the company in general is to achieve profits and strive to maintain its long-term survival. To achieve this goal, the company carries out its activities in using production factors, namely nature, capital, skills, technology, labor skills and others. One of the most important factors is labor, because the perfect technology if it is not supported by qualified human resources, the company will not be able to run well.
Employee performance has a very important role in a company and every company will always strive to improve the performance of its employees in the hope that what is the company's goal will be achieved.
Performance is the result obtained by an organization, both profit oriented and non-profit oriented organizations are produced during one period. According to Armstrong, (1998) performance is the result of work that has a strong relationship with the strategic goals of the organization.
Providing motivation is very important for employees, because the size of a motivation is a measure of employee work performance. So if the system given by the company is fair enough for employees, it will encourage employees to be better at doing their jobs and be more responsible for each of the tasks given, according to research by (Zainal, 2014) Motivation is the energy that moves individuals to try to achieve the expected goals. In addition, motivation is also defined as a psychic process that encourages a person to do something. Motivation can come from impulses from within oneself as well as from outside oneself. In motivating employees in the organization, a leader hopes that with problems that can affect the performance of each employee, namely will and ability. Leaders can influence the will and ability of employees to work by motivating so if the work motivation given by the leader is high, employee performance will increase.
The compensation system also has the potential to be one of the important means of shaping behavior and influencing performance. According to Badriyah, (2017) Compensation is all income in the form of money, direct goods or indirect goods received by employees in exchange for services provided to the company.
Meanwhile, according to Wibowo, (2018) compensation is the number of packages offered by the company to employees in exchange for the use of their labor. Through this compensation, employees can increase work performance, motivation and job satisfaction and increase their life needs. The effect of compensation on employee performance is enormous. High morale, unrest and loyalty of employees are influenced by the amount of compensation Nurul Ulfatin, (2016) so if the compensation given is high then employee performance is also high.
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1.1. Problem Formulation
1. What is the effect of work motivation on employee performance in employees of Toko Tanaman My Carnivlora Surabaya?
2. What is the effect of compensation on employee performance at Toko Tanaman My Carnivlora Surabaya?
3. What is the effect of work motivation and compensation on employee performance at Toko Tanaman My Carnivlora Surabaya?
1.2. Purpose
Based on the formulation of the problem above, the objectives in this study are:
1. To find out the effect of work motivation on employee performance in employees of Toko Tanaman My Carnivlora Surabaya
2. To find out the effect of compensation on employee performance on employees of Toko Tanaman My Carnivlora Surabaya
3. To find out the effect of work motivation and compensation on employee performance in employees of Toko Tanaman My Carnivlora Surabaya
1.3. Benefits
The benefits to be achieved in this study are as follows:
1. Theoretically
This research is expected to be used as a means to develop economic science, especially regarding the science of work motivation, compensation and employee performance. In addition, it can also increase experience in solving problems that exist in society before entering the real world of work.
2. Practically a. For companies
As input and consideration to the company in looking for solutions to the problems faced related to motivation and compensation to improve employee performance that occurs within the company.
b. For employees
As input to improve employee performance and can have a positive effect on employees in advancing the company.
c. For academics
This research is expected to be a reference material for future research.
1.4. Limitations of the Problem
Many factors or variables can be tested to follow up in this study. However, due to the breadth of the coverage area and the existence of various limitations that exist both the time and reach of researchers, in this study not all can be followed up. For this reason, in this study it is limited to:
1) Lack of work motivation of employees to get the job done
2) The motivation referred to here is financial and non-financial motivation 3) Financial motivation such as occupational safety
4) Non-financial motivation such as how to establish a good relationship between colleagues and superiors
5) Employees feel less towards the compensation provided by the company 6) Decreased employee performance
2. Literature Review 2.1. Motivation
2.1.1. Definition of Motivation
Motivation is an activity that results in, and maintains human behavior Handoko, (2015) Employee work motivation is influenced by the need for achievement, the need for affiliation, the need for competence, and the need for power Hasibuan, 2017).
Motivation is the energy that moves the individual to strive to achieve the expected goals. In addition, work motivation is also defined as a psychic process that encourages a person to do something. Motivation can come from within or outside a person. In motivating employees in the organization, a leader hopes that with problems that can affect the performance of each employee, namely will and ability. Leaders can influence the will and ability of employees to work by motivating.
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2.1.2. Motivational indicators
According to Maslow's theory, explaining work motivation is influenced by physical needs, the need for self-esteem, and the need for self-actualization. Then from these factors according to Siagian. Siagian, (2012) was reduced to indicators to determine employee work motivation, namely:
1) Physological Needs
Physiological needs are the most basic hierarchy of human needs which are the needs to be able to live such as eating, drinking, housing, oxygen, sleeping, and so on.
2) The Need for a Sense of Security
If the physiological needs are relatively satisfied, then the second need arises, namely the need for a sense of security. This need for a sense of security includes the safety of protection from the dangers of work accidents, guarantees of the continuity of their work and guarantees of their old age when they are no longer working.
3) Social Needs
If physiological needs and a sense of security have been minimally satisfied, then there will arise social needs, that is, the need for friendship, affiliation of closer interactionwith others. In the organization will relate to the need for the presence of a compact working group, good supervision, joint recreation and so on.
4) The Need for Rewards
These needs include the need to be respected, to be valued for one's achievements, recognition of one's abilities and expertise and the effectiveness of one's work.
5) The Need for Self-Actualization
Self-actualization is a hierarchy of needs from Maslow that is the highest. Self-actualization in the sense of the availability of opportunities for a person to develop the potential contained in himself so that it changes into real abilities.
3. Compensation
3.1. Definition of Compensation
Compensation is all income in the form of money, direct goods or indirect goods received by employees in exchange for services provided to Andajani and Badriyah, (2017) Compensation is the number of packages offered by the company to employees in exchange for the use of their labor (Wibowo, 2007).
Compensation is everything that employees receive in return for them. So through this compensation, employees can improve their performance, motivation and job satisfaction and improve their lives. The effect of compensation on employee performance is enormous. High morale, unrest and loyalty of employees are influenced by the amount of compensation (Ulfatin, 2016).
3.2. Compensation indicators
According to Badriyah, (2017) indicators to determine compensation, namely:
1) Salary
Salary (Sallary) is a form of repayment or reward that is given regularly to an employee for his services and work.
2) Wage Incentives
Incentive wages are a form of compensation from the company to labor as an additional income outside the monthly salary as a reward for their hard work at work.
3) Facilities
Work facilities are everything that is used, used, occupied, and enjoyed by employees both in direct contact with work and for the smooth running of work.
4. Employee Performance 4.1. Definition of Performance
Performance is the achievement or achievement of a person with regard to the tasks charged to him Marwansyah, (2016) Etymologically, performance comes from the word work achievement (perfomance). As stated by Mangkunegara, (2017) that the term performance comes from the word job perfomance or actual perfomance, which is the result of work in quality and quantity achieved by an employee in carrying out his duties in accordance with the responsibilities given to him.
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4.2. Employee performance indicators
indicators for measuring the performance of individual employees, namely:
1) Quality
Work quality is measured by employees' perceptions of the quality of the work produced and the perfection of tasks to the skills and abilities of employees.
2) Quantity
Represents the resulting amount expressed in terms such as the number of units, the number of cycles of completed activity.
3) Timeliness
It is the level of activity completed at the beginning of the stated time, viewed from the point of view of coordination with the output results as well as maximizing the time available for other activities.
5. Research Methods
5.1. Types, Sources and Techniques of Data Collection 5.1.1. Data Types
The type of data used by researchers is quantitative data. Where the data is in the form of numbers.
Quantitative data is data or information obtained in the form of numbers. In the form of this number, quantitative data can be processed using mathematical formulas or can also be analyzed with a statistical system.
There are 2 types of data used, namely:
a. Primary Data
The type of data in this study is primary data, which is data collected directly by the researcher or first party. The primary dara used in this study were employee responses obtained through questionnaires.
b. Secondary Data
Secondary data are data that are not directly obtained from the first source and have been compiled in the form of written documents. What is meant by the source of data in the study is the subject from which the data can be obtained.
5.1.2. Data Collection Techniques
To obtain valid and accurate data, researchers use several techniques in data collection that are considered appropriate and in accordance with the problem. These techniques are as follows:
1. Questionnaire (Questionnaire)
Questionnaire or questionnaire is a data collection technique by providing or distributing a list of questions to respondents in the hope of providing a response to the list of questions. The questionnaire used in this study was a closed model because the alternative answers were predetermined by the researcher.
Meanwhile, the question list instrument can be in the form of questions, checklists and scales according to (Ibid, 2021).
2. Interviews
Interviews are used as a data collection technique if you want to conduct a preliminary study to find problems that must be studied. This method aims to know the little things that are more in-depth than the respondents. According to Sugiyono ,(2017) Interviews can be conducted in a structured or unstructured manner and can be done face to face or using a telephone.
Interviews were conducted with business owners and employees of Toko Tanaman My Carnivlora Surabaya to reveal the variables. The type of interview is unstructured, that is, the interview guidelines are only the outline that is asked.
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6. Results of Research and Discussion
6.1. Research Results (Calculation and Data Processing) 6.1.1. Instrument Trials
Tabel 1.Validity Test
Variabel Pertanyaan Sig. 2-tailed Keterangan
Motivasi Kerja MK1 ,001 Valid
(MK) MK2 ,018 Valid
MK3 ,000 Valid
MK4 ,000 Valid
MK5 ,005 Valid
MK6 ,000 Valid
MK7 ,000 Valid
Kompensasi KP1 ,000 Valid
(KP) KP2 ,000 Valid
KP3 ,000 Valid
KP4 ,000 Valid
KP5 ,001 Valid
KP6 ,001 Valid
Kinerja
Karyawan KK1 ,001 Valid
(KK) KK2 ,000 Valid
KK3 ,002 Valid
KK4 ,000 Valid
KK5 ,000 Valid
KK6 ,001 Valid
KK7 ,000 Valid
KK8 ,000 Valid
KK9 ,044 Valid
KK10 ,008 Valid
Source : Processed data
Based on table , it can be concluded that all statement items of the entire vaiabel consisting of job motivation vaiabels, compensation variables and employee performance variables of 23 statements, have a significance value (2 tailed) smaller than 0.05 which means that all statement items can be said to be valid and can be used in research.
Tabel 2. Reliability Variabel Hasil Perhitungan Cronbach's
Alpha Keterangan
Motiasi
Kerja 0,616 Reliable
Kompensasi 0,623 Reliable
Kinerja
Karyawan 0,697 Reliable
Source : Processed data
Table above shows that the statements in this questionnaire are reliable because they have a cronbach alpha value of > 0.60. This indicates that each statement item used will be able to obtain consistent data which means that when the statement is resubmitted, an answer will be obtained relatively the same as the previous answer.
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6.1.2. Classical Assumption Test
Tabel 3. Normality Test
Unstandardized
Residual
Standardized Residual
N 37 37
Normal Parametersᵃ˒ᵇ Mean 0E-7 0E-7
Std. Deviation ,15841532 ,97182532
Most Extreme Differences
Absolute ,105 ,105
Positive ,105 ,105
Negative -,064 -,064
Kolmogorov-Smirnov Z ,638 ,638
Asymp. Sig. (2-tailed) ,811 ,811
Source : Processed data a. Test distribution is Normal.
b. Calculated from data.
Based on table above, it can be seen that the magnitude of the Asymp value. Sig. (2-tailed) of 0.811 >
0.05, this is in accordance with the established provisions, it can be concluded that the pad model data is normally distributed and can be used in research.
Tabel 4. Multicholinearity Test
Variabel Tolerance VIF Keterangan
Motivasi Kerja 0,354 2,821 Bebas Multikolinearitas Kompensasi 0,354 2,821 Bebas Multikolinearitas Source : Processed data
Based on table above, it can be seen that all free variables used as research models have a tolerance value greater than 0.10 and a Variance Influance Factor (VIF) smaller than 10. This is in accordance with the provisions that have been set.
Figure 1. Heteroskedasticity Test Source : Processed data
In figure above, it can be seen that the distribution of points does not form a certain pattern and the points are above or below the zero point of the Y axis, it can be concluded that in this study there was no heteroskedasticity problem.
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6.1.3. Hypothesis Test
Tabel 5. T Test
Model Standardized
Coefficients
t Sig.
Beta
1
(Constant) 4,380 ,000
Motivasi Kerja ,506 3,058 ,004
Kompensasi ,354 2,135 ,040
Source : Processed data
From Table above, it can be known the results of testing the research hypothesis shown and can be explained as follows:
1) Hypothesis Testing 1:
Work Motivation has a significant effect on the performance of employees of Toko Tanaman My Carnivlora Surabaya.
Based on the results from Table 4.13, it shows that the Work Motivation variable has a significance value of 0.004. If the sig value < 0.05 then H0 is rejected and H1 is accepted. The conclusion of the t-test states that the Work Motivation variable has a significant effect on employee performance.
2) Hypothesis Testing 2:
Compensation has a significant effect on the performance of employees of Toko Tanaman My Carnivlora Surabaya.
Based on the results from Table 4.13 shows that the Compensation variable has a significance value of 0.040. If the sig value < 0.05 then H0 is rejected and H2 is accepted. The conclusion of the t-test states that the Compensation variable has a significant effect on employee performance.
Tabel 6. Test F ANOVAᵃ
Model Sum Of Squares df Mean Square F Sig.
1
Regression 1,829 2 ,914 34,416 ,000ᵇ
Residual ,903 34 ,027
Total 2,732 36
Source : Processed data
a. Dependent Variable : Kinerja Karyawan
b. Predictors : (Constant), Kompensasi, Motivasi Kerja
From table above, the sig value in the model feasibility test was obtained, which was as high as 0.000<
0.05, this can show that research on the variables of Work Motivation and Compensation is simultaneously able to affect Employee Performance at the My Carnivlora Plant Shop Surabaya.
Tabel 7. Coefficient of Determination (R²)
Model R R Square Adjusted R
Square Std. Error of the Estimate
1 ,818ᵃ 0,669 0,65 0,16301
Source : Processed data
a. Predictors: (Constant), Kompensasi, Motivasi Kerja b. Dependent Variable: Kinerja Karyawan
Table above, shows the value of R2 (R Square) of 0.669 or 66.9%, this shows that the variables of Work Motivation and Compensation are simultaneously able to affect Employee Performance by 66.9% while the remaining 33.1% is explained by other factors that are not included in this research model.
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Tabel 8. Multiple Linear Regression Analysis
Model Unstandardized Coefficients Standardized
Coefficients
B Std. Error Beta
1
(Constant) 1,234 0,282
Motivasi Kerja 0,407 0,133 0,506
Kompensasi 0,289 0,135 0,354
Source : Processed data
a. Dependent Variable: Kinerja Karyawan KK = 1.234 + 0.407MO + 0.289KP + e
From the regression equation above, it can be described, as follows:
1. The constant (a) is the interception of the regression line with the KK if MO and KP = 0, which indicates that the magnitude of the independent variable used in the research model is as large as that constant. The magnitude of the value of the constant (a) is 1.234 indicating that if the free variable consisting of work motivation and compensation = 0, then the employee's performance amounts to 1.234.
2. The regression coefficient of work motivation (b1) = 0.407 indicates the direction of a positive relationship between work motivation variables and employee performance. This shows that the better the work motivation provided by the superior of Toko Tanaman My Carnivlora Surabaya, the better it can increase employee performance.
3. The compensation regression coefficient (b2) = 0.289 indicates the direction of a positive relationship between the compensation variable and employee performance. This shows that the more worthy of compensation provided by Toko Tanaman My Carnivlora Surabaya, the more it will make employee performance will improve as well.
6.1.4. Analysis and Discussion of Research Results
1. The Effect of Work Motivation on Employee Performance
Based on the results of this study, it shows that the Work Motivation variable is in a positive direction and a significance value of 0.004 < 0.05, it can be concluded that the work motivation variable has a positive and significant effect on employee performance. With this, the hypothesis proposed is that work motivation has a significant effect on employee performance, which is proven to be correct.
In this study, the variable of work motivation had a positive and significant influence on the performance of employees of the My Carnivlora Plant Store. Positive means that the better the work motivation given by the superior, the employee's performance will increase, on the contrary, the less work motivation given by the superior, the employee's performance will decrease. Significant means that the suitability of work motivation given to employees will have an impact on employee performance because work motivation may be used as an expectation for employees to get company appreciation in the form of meeting the needs of what they have done. Work motivation will arise if the needs are met by the company.
The results of this study support a previous study conducted by (Maylinda & Sari, 2021) which analyzed the effect of compensation and motivation on employee performance at PT Arta Boga Cemerlang Palembang.
This study showed that there was a partial significant influence of work motivation variables on employee performance at PT Arta Boga Cemerlang.
2. Effect of Compensation on Employee Performance
Based on the results of this study, it shows that the Compensation variable is in a positive direction and a significance value of 0.040 <0.05, it can be concluded that the compensation variable has a positive and significant effect on employee performance. With this, the hypothesis proposed is that compensation has a significant effect on employee performance, is proven to be correct.
In this study, the compensation variable had a positive and significant influence on the performance of employees of Toko Tanaman My Carnivlora Surabaya. Positive means that the more worthy of compensation given by the company, the employee's performance will also increase, on the contrary, the more incompatible with the compensation received by employees, it will reduce employee performance. Significant means that compensation is an encouragement made by company leaders to their employees to be more enthusiastic in working and make employees feel valued so that it will improve employee performance. Because compensation is urgently needed by employees.
The results of this study support previous research conducted by Margareth Sylvia Sabarofek (2020) which analyzed the effect of compensation and work motivation on the performance of PT Sinar Suri Toyota
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employees. In this study, it is stated that the compensation variable affects employee performance significantly.
The more worthy of compensation given, the better the employee's performance will be.
3. Effect of Work Motivation and Compensation Together on Employee Performance
Based on testing the hypothesis of the simultaneous influence (together) of the variables Work Motivation and Compensation on Employee Performance has a significance value of 0.000 < 0.05, it can be concluded that the variables work motivation and compensation together have a significant effect on employee performance. In this study, the variables of Work Motivation and Compensation together had a significant influence on the Performance of Employees of The My Carnivlora Plant Shop Surabaya. This means that these variables together can be used as a reference for factors that affect employee performance.
The results of this study support previous research conducted by Wiwik Apriliana & Ety Dwi Susanti, (2020) which analyzed the effect of motivation and compensation on the performance of employees of PT Telekomunikasi Indonesi Unit (CEPU). In this study, it is stated that the variables of work notivation and compensation have a significant effect on employee performance. Good employee work motivation and good compensation will create good employee performance.
7. Conclusions and Suggestions 7.1. Conclusion
Based on data analysis and discussion of work motivation and compensation variables that affect employee performance at the My Carnivlora Plant Store Surabaya, the following conclusions can be drawn:
1. Partially, the variable of work motivation has a significant and positive effect on employee performance at the My Carnivlora Plant Store Surabaya.
2. Partially, the compensation variable has a significant and positive effect on employee performance at the My Carnivloran Plant Store Surabaya.
3. Simultaneously, the variables of work motivation and compensation have a significant and positive effect 7on the performance of employees of the My Carnivlora Surabaya plant shop.
7.2. Suggestion
Based on the results of the research, discussion and conclusions obtained, the advice that can be given is for the company to continue to review and evaluate other possible variables that are considered to be able to improve employee performance in a better direction. Thus the My Carnivlora plant store is expected to increase work motivation and compensation together. The relationship between employees and leaders must be well established. Supported by providing work motivation to employees and providing good compensation to employees, it is expected to be able to improve the performance of employees of the My Carnivlora Surabaya plant shop. Employees are also expected to be able to build good relationships with leaders and colleagues so that the work situation is more conducive and employee performance is better.
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