Progress Conference Volume 2 Number 2, August 2019| 296
The Effect Of Compensation And Competence On Employee Performance
(Case Study Of PT. Serbuk Jaya Abadi In Kebon Arang District, Lumajang District)
Eva Yulianti1, M. Taufiki2, Hesti Budiwati3 STIE Widya Gama Lumajang
Abstract
The purpose of this study was to determine compensation and competency strategies for employee performance (case studies of employees of PT. Serbuk Jaya Abadi in KebonArang Village), both partially and simultaneously. The type of research used is descriptive with associative causal approaches. This research was conducted with the number of respondents as many as 30 employees.
The sampling technique used was simple random sampling technique. Hypothesis testing is done by multiple linear regression tests. through the SPSS 21 program for Windows. The results showed partially that compensation had a significant effect on employee performance (a case study of employees of PT. Serbuk Jaya Abadi in KebonArang Village), while the competency variable had a significant effect on employee performance (a case study of PT. Serbuk Jaya Abadi employees in Kebon Village Charcoal). And simultaneously compensation and competence have a significant effect on employee performance (a case study of PT. Serbuk Jaya Abadi employees in KebonArang Village), with a coefficient of determination (R Square) obtained value of 0.911 which shows that 91.1% performance can be explained by compensation and competence while the remaining 8.9 performance is influenced by other variables not examined in this study.
Keywords: Compensation, competence, employee performance.
INTRODUCTION
Human resource management must be a determinant of the success of an organization. Competitive advantage will succeed if policy makers can manage the potential of human resources appropriately.
Basically, employees are an important component for a company in realizing what are the goals set out in the company's vision and mission, meaning that the success of a company can achieve what the company wants depends on the quality of employees owned by the company concerned.
Resources also have an active role in decision making, in the sense that good decisions are produced by qualified human resources to reflect the ability to analyze a problem faced by the company. Employees have a certain skill that can be placed on certain jobs that will bring the organization with maximum performance results.
Performance is a process that refers and is measured in a certain time period based on policies or agreements that have been set previously (Edison, et al, 2017: 188). in managing performance so that it processes well, it must pay attention to an important aspect, namely managerial competence.
For mistakes that often occur is to position someone in a strategic position that does not have
Progress Conference Volume 2 Number 2, August 2019| 297 managerial competence as conceptual. Where, conceptual is a major part of strategic planning. A manager must be able to design planning well by placing strategic positions with the right people.
According to Edison, et al, (2017: 152) states that compensation is something that is received by employees in the form of rewards for the business that it generates. Compensation is the main cost of work and loyalty in a company's business. Compensation is the most important reason for most people to find work. If the company manages compensation well it will help a company to achieve its goals well. But on the contrary if the compensation is lacking, there will be many employees leaving the company.
Competence is defined as work ability for each individual that covers various aspects, namely aspects of knowledge, skills, and level of work that are in accordance with established standards (Administrative Law No. 13 of 2003 in Edison's theory, et al, 2017: 141). Competencies are used to develop competency-based standards that are tailored to the needs of existing industries. In addition, competence will be successful when there is a true balance between what is achieved and how it is achieved. To achieve this goal, existing employees must have the ability to understand what they should be doing.
The purpose of this study was to determine Compensation and Competence significant influence both partially and simultaneously on employee performance (case study at PT. Serbuk Jaya Abadi in Desa Kebon Arang Lumajang Regency)
METHOD
This type of research includes quantitative research by looking for causal relationships. Causal relationships are causal relationships. So here there are independent variables (which influence) and dependent variables (which are influenced) (Sugiyono, 2014: 37).
The sampling technique used in this study is simple random sampling technique. Simple random sampling is sampling with the technique of taking members of the population carried out randomly without regard to status or strata in the population. However, random sampling is carried out on the employees of PT. Jaya Abadi Powder encountered. The population in this research study was 50 employees who were all employees of PT. Jaya Abadi Powder in the Village of Kebon Arang.
The data analysis step in this study consisted of the Instrument Test, Basic Assumption Test for Multiple Linear Regression, Multiple Linear Regression Analysis, Hypothesis Testing, and Determination Coefficient. The steps of analyzing the data of this study consisted of the Instrument Test, Classical Assumption Test, Multiple Linear Analysis, Hypothesis Test, and Determination Coefficient.
RESULT AND CONCLUSION
Research Instrument Testing Results. Based on the data recapitulation of the validity test results can be found out the magnitude of the correlation coefficient of all statements consisting of 10 (ten) statements for the Compensation variable, 8 (eight) statements for competence, and 8 (eight) questions for employee performance. From the calculation of the correlation coefficient, the validity test results are said to be valid if the r count is at least 0.3 or r count is more than r table. The validity test results of compensation variable (X1) obtained r count for the first question (X1.1) of
Progress Conference Volume 2 Number 2, August 2019| 298 0.414, for the second question (X1.2) of 0.742, for the third question (X1.3) of 0.838, for the fourth question (X1. 4) in the amount of 0.719, for the fifth question (X1.5) of 0.755, for the sixth question (X1.6) of 0.862, for the seventh question (X1.7) of 0.935, for the eighth question (X1.8) of 0.941, for the ninth question (X1.9) is 0.915, and for the tenth question (X1.10) is 0.333. The validity test results of the competency variable (X2) obtained r count for the first question (X2.1) of 0.956, for the second question (X2.2) of 0.413, for the third question (X2.3) of 0.978, for the fourth question (X2. 4) amounting to 0.966, for the fifth question (X2.5) amounting to 0.958, for the sixth question (X2.6) amounting to 0.990, for the seventh question (X2.7) amounting to 0.973. The validity test results of the performance variable (Y) obtained r count for the first question (Y1) of 0.983, for the second question (Y2) of 0.921, for the third question (Y3) of 0.972, for the fourth question (Y4) of 0.949, for the fifth question (Y5) is 0,977, for the sixth question (Y6) is 0,967, for the seventh question (Y7) is 0,889, and for the eighth question (Y8) is 0,898, all of which have a significance level of 0,000 or below 5%.
Therefore, all statements are declared valid. In conclusion, all the statements in the research instrument can be declared as suitable as research instruments because they can explore the data or information needed.
From the reliability test results for the compensation variable (X1) obtained Cronbach's Alpha value for the compensation coefficient of 0.812, the competency variable (X2) obtained the Cronbach's Alpha value for the competency coefficient of 0.801, the performance variable (Y) obtained the Cronbach’s Alpha value for the performance coefficient of 0.903. Of all the variants in this study have the highest reliability with the opinion of Nunnaly in Jogiyanto (2014: 55), the acceptable value of Cronban's Alpha (ALPHA) depends on the purpose of the study. In the initial stages of research, a reliability value of 0.50 to 0.60 is considered sufficient, and for basic research, it is argued that increasing reliability beyond 0.80 is often considered too high. Generally the reliability scores received in many studies range from 0.70 to 0.80.
Classic Assumption Test Results. The classic assumption test is a statistical requirement that must be obtained in the analysis of multiple linear regression based on Ordinary Least Square (OLS).
Normality testing is performed to determine whether the dependent variable, independent, or both are normally distributed, approaching normal or not. A good regression model should have a normal or near normal distribution. Detect whether the data distribution is normal or not can be known by describing the spread of data through a P-P plot graph. If the Variance Inflation Factor (VIF) value is not more than 10 and the Tolerance value is not less than 0.1, then the model can be said to be free of multicollinearity. The higher the VIF, the lower the Tolerance (Kurniawan, 2014: 157) So, all the independent variables in this study are mutually independent variables, so that it can be continued in multiple linear regression testing.
Heteroscedasticity test aims to see whether the difference in variance from the residuals of one observation to another. Heteroscedasticity testing is done using Scatter Plot. Based on the results of heteroscedasticity testing in this study, there was no clear pattern of these points. This shows that the regression model has no symptoms of heteroscedasticity, which means there is no significant interference in this regression model
Results of Multiple Linear Regression Analysis. The results of the regression analysis can be arranged a multiple regression equation as follows:
Y = (-1,683) + 0,298 compensation + 0,617 competencies
Progress Conference Volume 2 Number 2, August 2019| 299 Hypothesis Testing Results. T test results for the compensation variable (X1) obtained t value of 2.364 with a significance level of 0.026. By using a 0.05 significance level, it is obtained t table of ± 1.701. This means that tcount (2,364)> ttable (1,701) and sig (0,026)> α (0,05) then H0 is rejected and Ha is accepted. This means that compensation has a significant effect on employee performance at PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang.
T test results for the competency variable (X2) obtained t value of 4.284 with a significance level of 0.000. By using a 0.05 significance level, it is obtained t table of ± 1.701. This means that tcount (4,284)> ttable (1,701) and sig (0,000) <α (0,05) then H0 is rejected and Ha is accepted. This means that competence has a significant effect on employee performance at PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang.
Discussion
Compensation has a significant effect on the performance of employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang. From the results of t test prove that the compensation variable significantly influence the performance of employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang.
The results of this study are in line with research conducted by Indarti (2018), Ratnasari (2016) and Suwati (2013), with the results showing that compensation has a significant effect on performance.
Compensation is a form of costs that must be incurred by a company in the hope that a company will get a reward from the form of employee performance. The compensation policy, generally only refers to the amount that will be paid to employees. If compensation is deemed sufficient, it means that the compensation is reasonable and good enough given to employees. The higher the compensation given to employees, the greater the level of employee performance quality that will be obtained by the employee himself, which later the employee's performance will have a positive impact on PT. Jaya Abadi Powder.
Compensation provided by PT. Serbuk Jaya Abadi does not consider the educational background and experience of its employees. When PT. Serbuk Jaya Abadi is wise in providing compensation to employees, then employees at the company will further improve the quality of their performance which will later have an impact on the loyalty of the employees themselves.
Compensation provided by PT. Serbuk Jaya Abadi is wise, especially in especially its clarity in compensation given to each of its employees. While salaries are one form of compensation. That is, with the policy in the form of salary given by the company to employees, the employees will feel satisfied so that they will increase productivity in work. Where, job satisfaction is reflected by the work environment. A conducive work environment will make every employee comfortable while working and will have an impact on the quality of work of employees at PT. Jaya Abadi Powder itself.
Based on the results of research conducted, then what can be done by PT. Serbuk Jaya Abadi in granting compensation to its employees, PT. Serbuk Jaya Abadi must be clear in providing the amount of compensation, certainty and openness in determining fair compensation so that employees feel given appropriate compensation and will compete in contributing to PT. Jaya Fine Powder.
Progress Conference Volume 2 Number 2, August 2019| 300 Competence has a significant effect on the performance of employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang. From the results of the t test prove that the competency variable has a significant effect on the performance of the employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang.
The results of this study are also in line with Supriyadi, et al (2018) and Ratnasari (2016), with the results showing that competence has a significant effect on performance.
Competence is a combination of knowledge and other personal characteristic skills to achieve success in a job that can be measured using agreed standards through training and development.
Competence is a person's ability to do a good job and has advantages based on aspects related to knowledge, abilities and behavior (Edison et al, 2017: 140).
Thus, a superior implementer are those who show competence on a high scale, high frequency and and with better results than the implementer. If an employee has competencies that make them work better, then the employee's performance will increase, which in turn will affect the increase in the company's performance.
Competence affects employee performance, because competence is a very important element for the progress of employees and the company. Therefore, the higher the level of competency possessed by employees, the better the ability of employees to complete work. So the company's productivity will increase. Employees who have high competence will have good confidence not to make mistakes at work and be able to finish well.
This discussion is related to the results of the third hypothesis testing which states that compensation and competence affect employee performance at PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang. From the results of the F test proves that the variable compensation and competence affect employee performance at PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang, meaning that the two independent variables jointly affect performance.
The results of this study are in line with research conducted by Indarti (2018), and Posuma (2013), which states that compensation and competence affect employee performance at PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang. Performance is a real behavior that is shown by everyone as work performance created by employees in accordance with their fields in the company (Rivai and Sagala, 2011: 549). So, performance can be influenced by compensation and competence simultaneously and simultaneously.
So, compensation and competence are related to performance. Because with these two variables, it can create an efficient and effective employee in achieving optimal work results. So, it can achieve the results of work in accordance with the wishes and goals of the company.
CONCLUSION
This research was conducted on the employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang. about the effect of compensation and competence on employee performance.
From the results of testing the first hypothesis, compensation has a partially significant effect on the performance of employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang, from the results of the second hypothesis testing, competency has a partially significant effect on
Progress Conference Volume 2 Number 2, August 2019| 301 the performance of the employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang, from the results of testing the third hypothesis, the two independent variables namely compensation and competence have a significant effect simultaneously on the performance of the employees of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang.
From the results of calculations using the SPSS version 21 program it can be seen that the coefficient of determination (RSquare) obtained is 0.831. This means that 83.1% of performance can be explained by compensation and competence variables, while the remaining 16.9% of performance is influenced by other variables
Management of PT. Serbuk Jaya Abadi in the village of Kebon Arang Lumajang district must always conduct periodic transfer of knowledge to maintain high employee performance consistency and need to conduct studies by deepening or developing research variables, so that other findings that are useful for scientific development can be obtained. And or this research can be used as a similar reference and can be replicated in studies on other objects or by changing the research model.
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