30
The Influence of Training Programs; Direct and Indirect Compensation to Employee Performance at PT
Prudential Life Assurance Surabaya
Setiawan Wicaksono, Elok Damayanti
Departement of Management, Narotama University Surabaya Jl. Arief Rachman Hakim No. 51 Surabaya, Indonesia [email protected], [email protected]
Abstract
Employee Performance is a very influential thing in the company, many factors that affect the employee performance such as training programs and compensation directly or indirectly. The purpose of this research is to find out how the training program, direct and indirect compensation influence employee performance. Data collection using questionnaires. The research method used a random sample of 86 people. The analysis method uses SPSS 20. The results of this study show free variables simultaneously affect bound variables. From the result, it can be concluded training program (X1), direct and indirect compensation (X2) simultaneously has a positive and significant effect on Employee Performance (Y) at PT Prudential Life Assurance Surabaya.
Keywords :
Direct and Indirect Compensation, Employee Performance, Training Program 1. Introduction
PT Prudential Life Assurance Surabaya Company in terms of management, provision and development of employee resources in the company still faces a variety of challenges, starting from equalization of skills that are lacking, low productivity level or performance level along with other management problems. Where some clients or customers are dissatisfied with the speed of employees in the registration and claims service process and convey the complaint problems directly to the agent of PT Prudential Life Assurance Surabaya. This is underpinning researchers to conduct research on the lack of employee expertise in handling customers so that it requires a more managed training program using interview and observation methods against agents.
1.1. Literature Review 1.1.1. Training program
Training for employees is a process of teaching certain knowledge and skills and attitudes so that employees are more skilled and able to carry out their responsibilities by increasingly bnaik, in accordance with the standards of work (Nur Aini Fathmawati, 2014).
1.1.2. Direct and Indirect Compensation
According to Ambar Teguh Sulistiyani (2003) there two kinds of compensation:
f. Direct compensation (financial), i.e. basic wage/salary system plus pay based on appearance (performance).
g. Indirect (non-financial) compensation, i.e. general category of employee benefits, mandated protection programs, health insurance, non-working time wages, family recreation, employment achievement awards.
1.1.3. Employee performance
The concept of performance or work performance stands for kinetic energy work whose match in English is performance (Wirawan, 2011). The term performance is often referred to as performance, otherwise known as performance. Michael Armstrong in Wirawan (2011) defines performance management as a process aimed at improving individual employee performance, working team performance, and then improving organizational performance. Wibowo (2018) also explained that performance management is about creating relationships and ensuring effective communication. Performance management focuses on what organizations, managers, and workers need to succeed.
31
i i
2. Methodolog y
2.1. Research Concept Framework
Figure 1. Research Concept Framewo 2.2. Hypothesis
H1: Training Program; and Direct and Indirect Compensation together have a partially significant effect on Employee Performance
H2: Training Program; and Direct and Indirect Compensation together have a significant simultaneous impact on Employee Performance
2.3. Types of Research
The type of data used in this study uses primary data. Primary data is a source of research data obtained directly from the original source not through intermediary media.
2.4. Population
Sugiyono (2019) suggests that the population is a generalization area consisting of: objects /subjects that have a certain quantity and characteristics set by the researchers to be studied and then drawn conclusions. The population included in the study was 86 Employees of PT. Prudential Life Assurance Surabaya.
2.5. Types, Sources and Techniques of Data Collection
Data collection techniques are ways to obtain data and information required in research. The data collection techniques used by researchers in this study are expected to provide accurate and more specific data, while the data collection techniques used are:
2.6. Observation
Observation is a data collection technique used when research with regard to human behavior, work processes, natural symptoms and when responded observed is not very large (Sugiyono, 2017).
2.7. Questionnaire
Questionnaire is a data collection technique performed by giving a set of questions or written statements to the respondent to answer (Sugiyono, 2017).
2.8. Multiple Linear Regression Analysis
According to Sugiyono (2019) the need to distinguish between valid and reliable research results. The results of the study are valid if there are similarities between the data collected and the actual data occurring in the objects studied. Valid means the instrument can be used to measure what should be measured.
xi yi r =
N X i Yi X i Yi N X 2
=
X i 2 N Y 2
Yi 2
Figure 2. Multiple Linear Regression Analysis Description:
r : Product Moment correlation coefficient
N : the size of the sample / number of respondents Xi : Total Score
Yi : Score each question/ item
32 3. Result and Discussion
3.1. Validity Test
Table 1. Validity Test Results No.
Indicators/Variables
Correlation r Table Description Training Program
(X1)
1. X1.1 0.930 0,2120 Valid
2. X1.2 0.928 0,2120 Valid
3. X1.3 0.913 0,2120 Valid
Direct and Indirect Compensation(X2)
1. X2.1 0.867 0,2120 Valid
2. X2.2 0.885 0,2120 Valid
3. X2.3 0.935 0,2120 Valid
4. X2.4 0.899 0,2120 Valid
5. X2.5 0,890 0,2120 Valid
6. X2.6 0,907 0,2120 Valid
Employee Performance (Y)
1. X3.1 0.684 0,2120 Valid
2. X3.2 0.718 0,2120 Valid
3. X3.3 0.671 0,2120 Valid
4. X3.4 0.572 0,2120 Valid
5. X3.5 0.570 0,2120 Valid
6 X3.6 0,537 0,2120 Valid
Source : Processed SPSS Output Data (2020)
Based on table 1 shows that all indicators used in measuring The Training Program variable (X1) of Direct and Indirect Compensation (X2) , and Employee Performance (Y) used in this study have a correlation or greater than = 0.2120 (value for n = 86) so all of these indicators are valid.
3.2. Reality Test
Table 2. Reliability Test Result Reliability Statistics
Cronbach’s Alpha N of Items
,927 15
Based on table 2 above, the data of this study has cronboach'salpha 0.980 and is above 0.60, then the data from this study can be declared reliable and trustworthy.
3.3. Classic Assumptions 3.3.1 Normality Test
Figure 2. Normality Test Results
33
In figure 2 it can be seen that the normal probability plot of regression standardized chart shows a normal chart pattern. This is seen from the dots that spread around the diagonal line and the diagonal line from the bottom left to the top right. Then it can be concluded that the regression model is worth using because it meets the assumption of normality.
Table 3. Multicholinearity Test Results Conficienstardize
Model Unstandardized Coefficients
Std.
B Erro
r
d Coeff icient s Beta
t Sig
Collinearity Statistics
Toler ance VIF 1
(Constant )
14,7 07
1,49 84
9,91 ,00
1 0
Training ,555 ,241
,431 2,30
024 231 1,33
Program 8 2
Direct
and 3,26 0,0 1,33
Indirect ,708 ,126 ,660
0 9 231
2 Compens
ation
h. Dependent Variable : Employee Performance
Based on table 3 it can be seen that the regression model does not experience multicholinearity disorders. This appears at the tolerance value of each free variable greater than 0.1. The results of the VIF calculation also show that the VIF value of each independent variable is less than 10. So it can be concluded that there is no multicholinearity between free variables in the regression model.
3.3.2 Heteroskedastisity Test
Figure 3. Heteroskedastisity Test Results Source: SPSS Output Data (2020)
Based on Figure 3 above the scatter plot point is spread evenly so that there is no heteroscedasticity.
34 3.3.3 Simultaneous Hypothesis (Test t)
Table 4. T Test Results (Partial) Cofficients Stand
ardize Model Unstandardized Coefficients
Std.
B Erro
r
d Coeff icient s Beta
t Sig
Collinearity Statistics
Toler ance VIF 1
(Constant )
14,7 07
1,49 84
9,91 ,00
1 0
Training ,555 ,241
,431 2,30
024 231 1,33
Program 8 2
Direct
and 3,26 0,0 1,33
Indirect ,708 ,126 ,660
0 9 231
2 Compens
ation
Source: SPSS Output Data (2020) a. Dependent Variable : Employee Performance
Based on table 4 data above in the T test (partial) above known significant value in the Training Program variable (X1) of 0.024 < 0.05 so on the result of the training program variable (X1) has a significant effect on the Employee Performance Variable (Y). In Direct and Indirect Compensation Variables (X2) of 0.009
< 0.05 so on the result this variable affects the Employee Performance variable (Y). Therefore on the variables of the Training Program; and Direct and Indirect Compensation significantly affect employee performance variables (Y).
3.3.4 Test F
Table 5. F (Simultaneous) Test Result Anova
Model Sum of
Squares df Mean
Square F Sig
1
Regression 393,063 2 196,531 20,675 ,000a
Residual 788,996 83 9,506
Total 1182,058 85
a. Predicors: (Constant), Direct and Indirect Compensation b. Depedent Variable: Employee Performance
Based on table 5 data above it is known that fcount = 20,675 while ftabel value is obtained at 3.96. Thus F count 20,675 > F table 3.96. And a significant value of 0.000< 0.05 so that it can be concluded Training Program (X1), Direct and Indirect Compensation (X2) simultaneously has a positive and significant effect on Employee Performance (Y) at PT Prudential Life Assurance Surabaya.
a. When Fcount > Ftable or significant level < 0.05 then the independent variable simultaneously affects the dependent variable.
b. When Fcount < Ftable or significant level > 0.05 then the independent variable simultaneously has no effect on dependent variables.
36 3.4. Discussion
1. Effect of Training Program on Employee Performance
The significant value of the Training Program variable (X1) of 0.024 < 0.05 so on the result of the Training Program variable (X1) has a significant effect on the Employee Performance Variable (Y). So that the diverse Training Program, experimental, research adjustment with what employees need, effective training facilities and principles greatly affect the performance of employees.
2. Effect of Direct and Indirect Compensation on Employee Performance
In Direct and Indirect Compensation Variables (X2) of 0.009 < 0.05 so on the result this variable affects the Employee Performance variable (Y). So direct and indirect compensation such as income derived from salary, target achievement commission, health insurance, leave is very influential on employee performance at PT Prudential Life Assurance Surabaya because it can trigger improved Employee Performance.
4. Conclussion and Suggestion 4.1. Conclussion
1. Training Program (X1) has a significant effect on Employee Performance (Y). Where the value of thitung = 0.024 < from ttabel 1,291 with significance 0.024 < 0.05 means it has a significant effect on employee performance at PT Prudential Life Assurance Surabaya.
2. Direct and Indirect Compensation (X2) has a significant impact on Employee Performance (Y). Where showing the value of thitung = 0.009 > of ttabel 1,291 with significance 0,000 < 0.05 which means significant to employee performance at PT Prudential Life Assurance Surabaya.
3. Training Program Variables (X1); and Direct and Indirect Compensation Variables (X2) have simultaneous effect on Employee Performance (Y) with a significant value smaller than 0.05 which is 0.000 at PT Prudential Life Assurance Surabaya.
4.2. Suggestion 1. For Researchers
For researchers can replace dependent variables or bound variables, because those variables are already widely used in research.
2. For The Company
It is expected to improve and improve the training program system because by conducting training programs periodically, diverse, and in accordance with the needs of employees so as to spur every employee to be better in employee performance. It is also expected that the Company will be able to impose fixed income such as salaries and increased compensation such as commissions, more leave allowances because according to the results of the study it will further improve employee performance.
Referencess
Ambar Teguh Sulistiyani, R. (2003). Manajemen sumber daya manusia : konsep, teori dan pengembangan dalam konteks organisasi publik (1st ed.). Graha Ilmu.
Nur Aini Fathmawati. (2014). Kontribusi Pelatihan Dalam Mendukung Kinerja Sales Representative Merchant (Srm) Di Perbankan. Journal of Business and Banking, 4(2), 189–200.
Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta, CV. Wibowo. (2018).
Manajemen Kinerja. Raja Grafindo Persada.
Wirawan. (2011). Evaluasi Teori, Model, Standar, Aplikasi. Raja Grafindo Persada.
