Pengaruh Indirect Compensation dan Work Environment terhadap Employee Performance (Studi pada PKS Aek Torop di Labuhanbatu Selatan)

Abstract

In a company, the key factor determining the long-term success and health of the company is employee performance. High-quality employees not only complete their tasks well but also contribute to the overall growth and progress of the company. If the company provides indirect compensation and work environment to employees well, the quality of performance produced by employees will also be good. This study aims to analyze how indirect compensation and work environment affect employee performance (study at PKS Aek Torop in South Labuhanbatu). The influence between indirect compensation and work environment will be analyzed partially and simultaneously on employee performance. The form of research used for this research is quantitative with an associative approach. Sampling was carried out through probability sampling techniques and used 60 respondents as samples. Primary data used in this study were obtained by distributing questionnaires directly while secondary data were obtained through literature studies. The data analysis methods used are validity test, reliability test, classical assumption test, multiple linear regression analysis, and hypothesis testing. The results showed that the variables of indirect compensation (X1) and work environment (X2) had a significant effect on employee performance (Y). The coefficient of determination test shows that there is a very close relationship between indirect compensation and work environment, to employee performance with an R value of 0.442 through the R square value, it is known that the indirect compensation and work environment variables contribute 19.5% to employee performance while the remaining 80.5% is influenced by other variables not discussed in this study.