PENGARUH KOMPENSASI FINANSIAL TERHADAP KINERJA PEGAWAI DI KANTOR UNIT PELAKSANA TEKNIS (UPT) PENGELOLAAN SUMBER DAYA AIR (PSDA) BATANG ANGKOLA PADANGSIDIMPUAN

Abstract

Abstract

The purpose of this study was to determine the effect of financial compensation on employee performance in the Water Resources Management (PSDA) Batang Angkola Padangsidimpuan Technical Service Unit Office. The method used in this research is multiple linear regression which is then partially tested and hypothesized. The results of this study indicate that financial compensation (X) has a strong relationship to performance (Y). This is indicated by R of 0.749. In the table the results of multiple linear regression analysis show that employee performance will increase by 0.746 units for each additional unit of X1 (direct financial compensation). So if direct financial compensation has increased by 1 unit, the employee's performance will increase by 0.746 units, assuming the other variables are considered constant. Employee performance will increase by 0.420 units for each additional unit of X2 (indirect financial compensation), so if indirect financial compensation increases by 1 unit, employee performance will increase by 0.420 units, assuming the other variables are considered constant. Based on the simultaneous hypothesis testing, it is carried out through the F test. Significance of F or sig. amounting to 0,000 is smaller than α of 0.05 so that H0 is rejected and H1 is accepted. Financial compensation (X) as the independent variable contributes to performance (Y) as the dependent variable with an R Square value of 56.2% and the remaining 43.8% is influenced by other variables. From the results of partial hypothesis testing, direct financial compensation (X1) has a dominant influence on performance (Y).