Title: THE EFFECT OF FINANCIAL AND NON-FINANCIAL COMPENSATION ON EMPLOYEE PERFORMANCE AT DJOMBANG BARU PG.

Authors : MUFIDATUL MILA

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

Companies are required to provide optimal performance by paying attention to both internal and external conditions of the company. PG. Djombang Baru in early 2000-2004 experienced losses. In 2005-2006, it was able to recover from the downturn with good factory performance, achieving profits that increased to Rp. 16.08 billion. Until now, PG. Djombang Baru has made a leap in employee performance achievements. From a Human Resources (HR) perspective, employee performance achievement depends on the success of HR management within the organization. In improving employee performance, PG. Djombang Baru provides financial and non-financial compensation. The purpose of this study is to analyze the influence of financial and non-financial compensation simultaneously, partially and determine the dominant influence on employee performance at PG. Djombang Baru. This study uses a quantitative approach. The sample of all employees is 115 people. The independent variable is financial compensation (X1) consisting of salary, allowances, incentives, insurance and bonuses and non-financial compensation (X2) consisting of promotions, training and awards while the dependent variable (Y) is performance. The analysis technique used is multiple linear regression. The results of the study are multiple linear equations Y = 13.401 +0.505 X1 + 0.166 X2 + e. Based on simultaneous testing, the F value is 60.256 with a probability value of 0.00 <0.05, so there is a significant simultaneous influence of financial and non-financial compensation variables on performance. Based on partial testing, the t value is t X1 of 6.062 and t X2 of 1.98397, there is a significant partial influence of financial and non-financial compensation variables on performance. To determine the dominant influence, use the largest beta value, namely the beta value of financial compensation of 0.505, so compensation has a dominant influence on the performance of employees in the plant section at PG. Djombang Baru

Keywords: financial compensation, non-financial compensation, performance

Sources: http://repository.unair.ac.id/64987/