Employee Competencies and Compensation Strategies as Company’s Strategic Effort to Escalate Employee Performance
Rusdin Tahir1, Rudiyanto2, Arief Prayitno3, Dadang Amiruddin4, Tita Rosita5
1Rusdin Tahir, Business Administration, Universitas Padjadjaran, Bandung, Indonesia.
2Rudiyanto, Business Administration, Universitas Padjadjaran, Bandung, Indonesia.
3Arief Prayitno, Business Administration, Universitas Padjadjaran, Bandung, Indonesia.
4Dadang Amiruddin , Business Administration, Universitas Padjadjaran, Bandung, Indonesia.
5Tita Rosita, Education Management, Univeristas Terbuka, Indonesia.
Manuscript received on 12 August 2019. | Revised Manuscript received on 16 August 2019. | Manuscript published on 30 September 2019. | PP: 7200-7208 | Volume-8 Issue-3 September 2019 | Retrieval Number: C6220098319/2019©BEIESP | DOI: 10.35940/ijrte.C6220.098319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The purpose of this study is to reveal employee competencies and compensation received by employees, as well as their implications for employee performance. This study was analyzed descriptively and verificatively through a survey method of 329 marketing managers in retail companies in Indonesia. The technique of data collection is done by indirect communication, through instruments in the form of questionnaires. Data were analyzed by weighted means score (WMS) and Structural Equation Modeling (SEM). The results showed that employee competency was good, but not optimal, indicated by the indicator of the employee’s need for the company and the employee’s priority scale in the work was still weak. Furthermore, the compensation strategy is relatively good, indicated by indicators of salary/wages, incentives and cooperative facilities that are still weak. On the other hand, competencies and compensation strategies partially and simultaneously have positive and significant impact for employee performance which requires serious handling.
Keywords: Employee Competencies, Compensation Strategies, Employee Performance, Weighted Means Score, Path Analysis.
Scope of the Article: High Performance Concrete