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Research Article Open access CC BY 4.0

Competence as a Moderating Influence of Remuneration and Training on Employee Performance: Study at the Poltekkes Kemenkes Malang, Indonesia

Andry Prasetyo, Dwi Orbaningsih, Tri Cicik Wijayanti

Asian Journal of Economics, Business and Accounting · pp. 142–157 · Published 1 Aug 2024

10.9734/ajeba/2024/v24i81447

Abstract

Employee performance problems in higher education can be influenced by several factors such as lack of motivation caused by inappropriate remuneration practices, competency mismatch, and lack of development opportunities. This study aims to find empirical evidence for the concept of competence as a moderator, providing insight for organizational leaders in designing more effective remuneration and human resource development strategies to achieve good performance for employees. This research method is quantitative, the sample in this study was 100 respondents who met the criteria, with a total population of 621 education personnel at Polkesma. Data analysis was carried out using the Partial Least Square (PLS) method using SmartPLS software version 3. Hypothesis testing uses the statistical value then for alpha 5% by comparing t count with t table. The results showed that there was an influence between remuneration on employee performance with at statistics value of 3.076, there was an influence between training on employee performance with at statistics value of 3.981. Then in the third hypothesis shows there is an effect of remuneration on employee performance which is strengthened by competence with a t statistics value of 2.715. And there is no significant effect on training on employee performance which is weakened by competence with at statistics value of 1.645. This study contributes significantly to the field of human resource management by demonstrating the critical role of remuneration  and training in enhancing employee performance. The findings underscore the necessity for organizations to invest in appropriate remuneration strategies and effective training programs to optimize employee output. Additionally, the moderating role of competence provides  valuable insights into how individual capabilities can influence the efficacy of these interventions, offering a nuanced understanding of performance improvement mechanisms in educational institutions.

Competence employee performance training remuneration quantitative research

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