Improving employee performance through compensation in savings and loans cooperatives

  • Sonny Hersona 
    Universitas Singaperbangsa Karawang
    Indonesia
  • Yamarthin Partogi Tarihoran
    Universitas Singaperbangsa Karawang
    Indonesia
  • Sari Sekarini
    Universitas Singaperbangsa Karawang
    Indonesia
  • Vicky Alvin Nugraha
    Universitas Singaperbangsa Karawang
    Indonesia
  • Hilmy Muhammad Iqbal
    Universitas Singaperbangsa Karawang
    Indonesia

Abstract

This research aims to investigate the influence of competency on employee performance at SLC Online Jaya Mandiri Karawang. A total of 32 SLC staff were used as the research population, and the entire population was interviewed using the census method (Sample Sum). Observation, questionnaire, and documentation methods were used for data collection. Data analysis involves testing validity, reliability, simple regression, and coefficient of determination. The results of the analysis show that there is a correlation between salary and bonuses and the performance of SLC Online Jaya Mandiri Karawang employees, measured through a validity test. The rcount value which is greater than the rtable value (0.349) indicates adequate validity. The reliability test shows that all variables have a confidence value greater than the reliability standard of 0.60. A simple regression test shows the relationship between salary variables and employee performance, with the formula Y = 3.076 x 0.549 and significance less than 0.05. The coefficient of determination of 43.2% shows that 43.2% of employee performance is influenced by salary variables. The remaining 56.8% was influenced by other factors not tested in this study. The research results provide the implication that increasing salaries can have a positive impact of 43.2% on the performance of SLC Online Jaya Mandiri Karawang employees. However, it should be noted that other factors not tested also played an important role at 56.8%. Therefore, further recommendations for future research could involve additional variables to understand other factors that influence employee performance in a more holistic manner.
References
  1. Abrar, A., Hasan, I., & Kabir, R. (2021). Finance-growth nexus and banking efficiency: The impact of microfinance institutions. Journal of Economics and Business, 114, 105975. https://doi.org/https://doi.org/10.1016/j.jeconbus.2020.105975
  2. Armstrong, C. S., Kepler, J. D., Larcker, D. F., & Shi, S. X. (2024). Rank-and-file accounting employee compensation and financial reporting quality. Journal of Accounting and Economics, 101672. https://doi.org/https://doi.org/10.1016/j.jacceco.2024.101672
  3. Bahari, S. (2021). Peran Budaya Kerja dan Kompensasi pada Kinerja Aparatur Sipil Negara (Asn) di Kantor Kementerian Agama Kota Baubau. Sang Pencerah, 7(3), 476–491. https://doi.org/10.35326/pencerah.v7i3.1354
  4. Castaldo, S., Ciacci, A., & Penco, L. (2023). Perceived corporate social responsibility and job satisfaction in grocery retail: A comparison between low- and high-productivity stores. Journal of Retailing and Consumer Services, 74, 103444. https://doi.org/https://doi.org/10.1016/j.jretconser.2023.103444
  5. Dhakal, D., & Mueser, P. (2023). Agricultural cooperatives and the failure to achieve commercialization of agriculture in Nepal: A case study of the Chitwan district. Research in Globalization, 7, 100165. https://doi.org/https://doi.org/10.1016/j.resglo.2023.100165
  6. Douglas, P. S., Biga, C., Burns, K. M., Chazal, R. A., Cuffe, M. S., Daniel, J. M., Garzio, C., Harrington, R. A., Patel, H. N., Walsh, M. N., & Wolk, M. J. (2019). 2019 ACC Health Policy Statement on Cardiologist Compensation and Opportunity Equity. Journal of the American College of Cardiology, 74(15), 1947–1965. https://doi.org/https://doi.org/10.1016/j.jacc.2019.07.040
  7. Dwiguspana, E., Sumari, A. D. W., & Prihantoro, M. (2016). Pengaruh Kompensasi terhadap Kedisiplinan dan Kinerja Prajurit Batalyon Kavaleri 11/serbu Kodam Iskandar Muda. Jurnal Pertahanan Dan Bela Negara, 6(1), 137–160. https://doi.org/10.33172/jpbh.v6i1.300
  8. Jaya, R. S., Idris, A., & Linggi, R. K. (2018). KOORDINASI LURAH DALAM MENINGKATKAN KINERJA PEGAWAI DI KELURAHAN SIDODADI SAMARINDA.
  9. Kendo, S., & Tchakounte, J. (2022). The drivers of the financial integration of microfinance Institutions: Do financial development, agency costs and microfinance performance matter? The Quarterly Review of Economics and Finance, 84, 128–142. https://doi.org/https://doi.org/10.1016/j.qref.2022.01.016
  10. Khan, M. H., & Muktar, S. N. (2024). Green employee empowerment: The missing linchpin between green HRM and sustainable organizational performance. Journal of Cleaner Production, 434, 139812. https://doi.org/https://doi.org/10.1016/j.jclepro.2023.139812
  11. Kim, H. S., & Jang, S. (Shawn). (2020). The effect of increasing employee compensation on firm performance: Evidence from the restaurant industry. International Journal of Hospitality Management, 88, 102513. https://doi.org/https://doi.org/10.1016/j.ijhm.2020.102513
  12. Kontu, O., Mekel, P., & Moniharapon, S. (2015). Pengaruh Pendidikan, Kemampuan Kerja dan Kompensasi terhadap Kinerja Pegawai pada Kantor Dinas Sosial Kota Manado. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 3(1). https://doi.org/10.35794/emba.v3i1.7549
  13. Liaquat, M., Ahmed, G., Ismail, H., Ul Ain, Q., Irshad, S., Sadaf Izhar, S., & Tariq Mughal, M. (2024). Impact of motivational factors and green behaviors on employee environmental performance. Research in Globalization, 8, 100180. https://doi.org/https://doi.org/10.1016/j.resglo.2023.100180
  14. Lu, C., & Niu, Y. (2022). Do companies compare employees’ salaries? Evidence from stated-owned enterprise group. China Journal of Accounting Research, 15(3), 100252. https://doi.org/https://doi.org/10.1016/j.cjar.2022.100252
  15. Lukas, M., Tewal, B., & Walangitan, M. D. (2017). Pengaruh Pengawasan, Kepemimpinan dan Kompensasi terhadap Kinerja Pegawai pada Badan Pengelola Keuangan dan Barang Milik Daerah Kabupaten Minahasa Utara. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(2). https://doi.org/10.35794/emba.v5i2.16465
  16. Marrucci, L., Daddi, T., & Iraldo, F. (2024). Creating environmental performance indicators to assess corporate sustainability and reward employees. Ecological Indicators, 158, 111489. https://doi.org/https://doi.org/10.1016/j.ecolind.2023.111489
  17. Meyer, J.-H., González, E. M., & Lopez-Lomelí, M. A. (2022). Better support for supportive jobs. How to improve brand performance through better compensation and training for in-store merchandisers. Journal of Retailing and Consumer Services, 64, 102750. https://doi.org/https://doi.org/10.1016/j.jretconser.2021.102750
  18. Nofiar, N., Maswarni, M., & Susanti, N. (2022). Pengaruh Seleksi dan Pelatihan terhadap Kinerja Karyawan PT Zafens Cipta Jakarta Selatan. Jurnal Ilmiah Swara Manajemen, 2(3), 331–342. https://doi.org/10.32493/jism.v2i3.24895
  19. Nugraha, A., & Tjahjawati, S. S. (2017). Pengaruh Kompensasi terhadap Kinerja Karyawan. Jurnal Riset Bisnis Dan Investasi, 3(3), 24–32. https://doi.org/10.35697/jrbi.v3i3.942
  20. Ohunakin, F., & Olugbade, O. A. (2022). Do employees’ perceived compensation system influence turnover intentions and job performance? The role of communication satisfaction as a moderator. Tourism Management Perspectives, 42, 100970. https://doi.org/https://doi.org/10.1016/j.tmp.2022.100970
  21. Oktaviani, R., & Nainggolan, K. (2016). Analisis Pengaruh Kompensasi dan Lingkungan Kerja terhadap Kinerja Guru di SMA Negeri 1 Klaten. Jurnal Khatulistiwa Informatika, 4(2), 136–145. https://doi.org/10.31294/jeco.v4i2.445
  22. Périlleux, A., & Szafarz, A. (2015). Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal. World Development, 74, 437–452. https://doi.org/https://doi.org/10.1016/j.worlddev.2015.05.011
  23. Rahayuningsih, S., Yuliejantiningsih, Y., & Adbdullah, G. (2016). Pengaruh Kompensasi dan Lingkungan Kerja terhadap Kepuasan Kerja Guru SMP Negeri di Sub Rayon 02 Pecangaan Kabupaten Jepara. Jurnal Manajemen Pendidikan Universitas PGRI Semarang, 5(3). https://doi.org/10.26877/jmp.v5i3.1983
  24. Ranta, M., & Ylinen, M. (2023). Employee benefits and company performance: Evidence from a high-dimensional machine learning model. Management Accounting Research, 100876. https://doi.org/https://doi.org/10.1016/j.mar.2023.100876
  25. Rofianti, M., & Dewi, I. G. A. M. (2021). Pengaruh Komunikasi, Disiplin Kerja, dan Kompensasi terhadap Kinerja Karyawan Warung Mak Beng Cabang Ubud. E-Jurnal Manajemen Universitas Udayana, 10(1). https://doi.org/10.24843/EJMUNUD.2021.v10.i01.p01
  26. Sebhatu, K. T., Gezahegn, T. W., Berhanu, T., Maertens, M., Van Passel, S., & D’Haese, M. (2020). Conflict, fraud, and distrust in Ethiopian agricultural cooperatives. Journal of Co-Operative Organization and Management, 8(1), 100106. https://doi.org/https://doi.org/10.1016/j.jcom.2020.100106
  27. Sentime, I. (2019). Co-operatives in the Democratic Republic of Congo: A literature review. Journal of Co-Operative Organization and Management, 7(1), 1–9. https://doi.org/https://doi.org/10.1016/j.jcom.2018.11.002
  28. Smulowitz, S. J., & Almandoz, J. (“John”). (2021). Reprint of “Predicting employee wrongdoing: The complementary effect of CEO option pay and the pay gap.” Organizational Behavior and Human Decision Processes, 166, 104–116. https://doi.org/https://doi.org/10.1016/j.obhdp.2021.02.007
  29. Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
  30. Sutopo, & Sugiyono. (2021). Metode penelitian kuantitatif kualitatif dan R dan D. Bandung : Afabeta.
  31. Syahyuni, D. (2020). Hubungan antara Disiplin, Kompensasi dengan Kinerja Karyawan pada Pusat Pemanfaatan Penginderaan Jauh Lapan, JakartaTimur. Jurnal Khatulistiwa Informatika, 18(1), 16–22. https://doi.org/10.31294/jp.v18i1.7175
  32. Tian, Y., Pan, X., Pang, B., & Wu, Y. (2023). Political career concerns and bank lending in China. Emerging Markets Review, 54, 101000. https://doi.org/https://doi.org/10.1016/j.ememar.2023.101000
  33. Twesigye, P. (2023). Understanding structural, governance and regulatory incentives for improved utility performance: Learning from Umeme Ltd in Uganda. Energy Research & Social Science, 95, 102900. https://doi.org/https://doi.org/10.1016/j.erss.2022.102900
  34. Watto, W. A., Fahlevi, M., Mehmood, S., Asdullah, M. A., & Juhandi, N. (2023). Executive compensation: A justified reward or a mis-fortune, an empirical analysis of banks in Pakistan. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100092. https://doi.org/https://doi.org/10.1016/j.joitmc.2023.100092
  35. Winaryo, S., Nabila, N. A., & Nugroho, P. J. (2021). Pengaruh Kompensasi Non Finansial terhadap Kinerja Pegawai (Asn) Dinas Provinsi Kalimantan Tengah. Equity in Education Journal, 3(1), 16–21. https://doi.org/10.37304/eej.v3i1.2472
  36. Wright, C. G. (2023). Chapter 22 - Energy democracy cooperatives: Opportunities and challenges (M. Nadesan, M. J. Pasqualetti, & J. B. T.-E. D. for S. F. Keahey (eds.); pp. 195–204). Academic Press. https://doi.org/https://doi.org/10.1016/B978-0-12-822796-1.00022-X
  37. Yamagishi, K., Sañosa, A. R., de Ocampo, M., & Ocampo, L. (2021). Strategic marketing initiatives for small co-operative enterprises generated from SWOT-TOWS analysis and evaluated with PROMETHEE-GAIA. Journal of Co-Operative Organization and Management, 9(2), 100149. https://doi.org/https://doi.org/10.1016/j.jcom.2021.100149
  38. Yuan, S., Zhou, R., Li, M., & Lv, C. (2023). Investigating the influence of digital technology application on employee compensation. Technological Forecasting and Social Change, 195, 122787. https://doi.org/https://doi.org/10.1016/j.techfore.2023.122787
  39. Zhu, R., Hu, X., Wei, A., Yang, W., & Ji, F. (2023). Measuring safety performance of construction employees using data envelopment analysis: A case in Australia. Journal of Safety Research. https://doi.org/https://doi.org/10.1016/j.jsr.2023.11.016.

Downloads

PDF

Statistic

Abstract Views
: 382 times
PDF
: 2 times