The Importance of Employee Performance in the Era of Globalization

Oct 13, 2025 by thesweetdesigns.com 79 views

Effect of Giving Incentives and Job Satisfaction on Employee Performance of Balai Yasa Pulo Brayan PT. Medan Train

In today's highly competitive business landscape, companies are constantly seeking ways to improve their performance and stay ahead of the competition. One key aspect of achieving this goal is to optimize the performance of their human resources. Human resources are considered one of the most valuable assets of any organization, and their performance plays a crucial role in determining the overall success of the company. Effective management of human resources is essential to achieve company goals.

The Importance of Employee Performance in the Era of Globalization

In an increasingly developed era, companies are required to continue to improve their performance in order to survive in tight competition. The era of globalization has brought about a significant increase in competition among companies, making it essential for them to optimize their performance. Employee performance is a critical factor in determining the success of a company. It is the key to achieving company goals and staying ahead of the competition.

The Role of Incentives and Job Satisfaction in Employee Performance

One strategy that can be applied by the company to improve employee performance is to provide incentives and meet employee job satisfaction. Incentives and job satisfaction are two important factors that can influence employee performance. Incentives are not only in the form of money, but can also be recognition, promotion, or facilities that support work. On the other hand, high job satisfaction will create a positive work environment, which ultimately contributes to employee productivity.

Research Background

This study aims to determine the extent to which incentives and job satisfaction affect employee work performance at Balai Yasa Pulo Brayan PT. Medan Train. In this study, the authors refer to the theory of justice put forward by Schermerhorn (2002) and the incentive theory by Terry (2001). Through this approach, it is hoped that a significant relationship can be found between the incentives given and job satisfaction with employee work performance.

Research Methodology

Data collection techniques are carried out through interviews, the distribution of questionnaires to 65 employees as samples, as well as documentation studies. To test the hypothesis, the authors use multiple regression and process data using the SPSS version 12.00 program.

Research Result

The overall test results (test f) show that the provision of incentives and job satisfaction simultaneously has a significant influence on employee work performance at Balai Yasa Pulo Brayan PT. Medan Train. In addition, the results of partial tests (T test) show that each factor, namely the provision of incentives and job satisfaction, significantly affects employee performance.

From the results of the determination test, the adjusted R square value was 0.552, which means the variation of the provision of incentives and job satisfaction can explain employee performance of 55.2%. This shows that there is a strong relationship between the two variables and employee work performance in the company.

Analysis

Providing appropriate incentives and increasing job satisfaction can trigger employee motivation to work better. Incentives and job satisfaction are two important factors that can influence employee performance. Incentives are not only in the form of money, but can also be recognition, promotion, or facilities that support work. On the other hand, high job satisfaction will create a positive work environment, which ultimately contributes to employee productivity.

Companies that understand and implement these two aspects well will not only improve employee performance but will also build employee loyalty and commitment to the company. This is very important for the sustainability of the company in the midst of increasingly fierce competition.

Conclusion

Giving incentives and job satisfaction are two important factors that can influence employee work performance at Balai Yasa Pulo Brayan PT. Medan Train. This study shows that good management of these two aspects can provide positive results for the company. Therefore, management needs to continue to evaluate and improve incentive strategies and job satisfaction in order to achieve common goals in improving company performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

Provide incentives that are relevant to employee needs: Incentives should be provided that are relevant to employee needs and can motivate them to work better.
Increase job satisfaction: Job satisfaction should be increased by creating a positive work environment and providing opportunities for employee growth and development.
Continuously evaluate and improve incentive strategies and job satisfaction: Management should continuously evaluate and improve incentive strategies and job satisfaction to ensure that they are effective in improving employee performance.

Limitations of the Study

This study has several limitations that should be noted. The study was conducted in a single company: The study was conducted in a single company, which may limit the generalizability of the findings. The sample size was small: The sample size was small, which may not be representative of the entire population.

Future Research Directions

Future research should focus on the following areas:

Investigate the relationship between incentives and job satisfaction with employee performance in different companies: Future research should investigate the relationship between incentives and job satisfaction with employee performance in different companies to determine if the findings of this study are generalizable.
Examine the impact of incentives and job satisfaction on employee performance in different industries: Future research should examine the impact of incentives and job satisfaction on employee performance in different industries to determine if the findings of this study are applicable to different industries.
Investigate the role of other factors in influencing employee performance: Future research should investigate the role of other factors in influencing employee performance, such as employee engagement, motivation, and job satisfaction.

Conclusion

In conclusion, this study found that incentives and job satisfaction have a significant influence on employee work performance at Balai Yasa Pulo Brayan PT. Medan Train. Providing appropriate incentives and increasing job satisfaction can trigger employee motivation to work better. Companies that understand and implement these two aspects well will not only improve employee performance but will also build employee loyalty and commitment to the company.
Frequently Asked Questions (FAQs) about the Effect of Giving Incentives and Job Satisfaction on Employee Performance

In our previous article, we discussed the importance of incentives and job satisfaction in improving employee performance. In this article, we will answer some frequently asked questions (FAQs) about the effect of giving incentives and job satisfaction on employee performance.

Q: What are incentives and how do they affect employee performance?

A: Incentives are rewards or benefits that are given to employees to motivate them to work better. Incentives can be in the form of money, recognition, promotion, or facilities that support work. Incentives can affect employee performance by increasing motivation, productivity, and job satisfaction.

Q: What is job satisfaction and how does it affect employee performance?

A: Job satisfaction is a measure of how happy or content an employee is with their job. Job satisfaction can affect employee performance by increasing motivation, productivity, and job engagement. When employees are satisfied with their job, they are more likely to be motivated to work better and provide high-quality performance.

Q: How can companies provide incentives and increase job satisfaction?

A: Companies can provide incentives and increase job satisfaction by:

Providing competitive salaries and benefits: Companies can provide competitive salaries and benefits to attract and retain top talent.
Offering recognition and rewards: Companies can offer recognition and rewards to employees who perform well or achieve specific goals.
Providing opportunities for growth and development: Companies can provide opportunities for growth and development to employees, such as training and education programs.
Creating a positive work environment: Companies can create a positive work environment by promoting a culture of respect, open communication, and teamwork.

Q: What are the benefits of providing incentives and increasing job satisfaction?

A: The benefits of providing incentives and increasing job satisfaction include:

Improved employee performance: Providing incentives and increasing job satisfaction can improve employee performance by increasing motivation, productivity, and job satisfaction.
Increased employee retention: Providing incentives and increasing job satisfaction can increase employee retention by making employees feel valued and appreciated.
Improved employee engagement: Providing incentives and increasing job satisfaction can improve employee engagement by creating a positive work environment and promoting a culture of respect and open communication.

Q: What are some common mistakes that companies make when providing incentives and increasing job satisfaction?

A: Some common mistakes that companies make when providing incentives and increasing job satisfaction include:

Not providing incentives that are relevant to employee needs: Companies should provide incentives that are relevant to employee needs and can motivate them to work better.
Not increasing job satisfaction: Companies should increase job satisfaction by creating a positive work environment and promoting a culture of respect and open communication.
Not continuously evaluating and improving incentive strategies and job satisfaction: Companies should continuously evaluate and improve incentive strategies and job satisfaction to ensure that they are effective in improving employee performance.

Q: How can companies measure the effectiveness of their incentive strategies and job satisfaction initiatives?

A: Companies can measure the effectiveness of their incentive strategies and job satisfaction initiatives by:

Conducting regular employee surveys: Companies can conduct regular employee surveys to measure employee satisfaction and engagement.
Tracking employee performance metrics: Companies can track employee performance metrics, such as productivity and quality, to measure the effectiveness of their incentive strategies.
Conducting regular reviews and evaluations: Companies can conduct regular reviews and evaluations to assess the effectiveness of their incentive strategies and job satisfaction initiatives.

Conclusion

In conclusion, providing incentives and increasing job satisfaction are critical components of a successful employee performance management strategy. By understanding the importance of incentives and job satisfaction, companies can create a positive work environment that motivates and engages employees, leading to improved performance and increased employee retention.