THE INFLUENCE OF COMPENSATION AND JOB PROMOTION ON EMPLOYEE PERFORMANCE AT PT KARTIKA CIPTA INDONESIA

Siti Musthafiah

doi:10.59639/asik.v3i2.104

Authors

Siti Musthafiah STIE Ganesha

DOI:

https://doi.org/10.59639/asik.v3i2.104

Keywords:

compensation, job promotion, employee performance

Abstract

This study aims to determine the effect of compensation and job promotions on employee performance at PT Kartika Cipta Indonesia. The underlying problem is the importance of effective human resource management through fair compensation and a transparent, merit-based promotion system to improve employee performance. The method used in this study was quantitative. Data were collected through questionnaires distributed to 50 respondents, who were permanent employees of the company. Data analysis techniques included simple and multiple linear regression analysis, t-tests, F-tests, and coefficients of determination using SPSS.

The results showed that compensation had a partial positive and significant effect on employee performance, with a calculated t-value of 9.073 > t-table 2.012 and a significance level of 0.000. Similarly, job promotions also had a positive and significant effect on performance, with a calculated t-value of 10.492 > t-table 2.012 and a significance level of 0.000. Simultaneously, compensation and job promotions significantly influence employee performance, as indicated by the calculated F-value of 69.673 > F-table 3.20, with a significance level of 0.000. The R-square value of 0.748 indicates that 74.8% of the variation in employee performance can be explained by compensation and job promotions.

Based on these results, it can be concluded that improving the quality of compensation and a sound promotion system will drive improved employee performance. Therefore, company management is advised to implement fair, objective, and merit-based compensation and promotion policies as a strategy to increase work productivity

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