How to cite:
Yohanes Susanto and Astri Riance. (2021). The Effect of
Competence, Compensation and Discipline on Partners
Employees Performance at Central Statistics Agency. Journal
Eduvest. 1(10): 1096-1107
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2775-3727
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Eduvest – Journal of Universal Studies
Volume 1 Number 10, October 2021
p- ISSN 2775-3735 e-ISSN 2775-3727
THE EFFECT OF COMPETENCE, COMPENSATION AND
DISCIPLINE ON PARTNERS EMPLOYEES PERFORMANCE AT
CENTRAL STATISTICS AGENCY
Yohanes Susanto and Astri Riance
Bina Insan University Lubuklinggau
E-mail: [email protected], [email protected]
ARTICLE INFO ABSTRACT
Received:
September, 26
th
2021
Revised:
October, 14
th
2021
Approved:
October, 15
th
2021
The purpose of this research is to analyze the effect of
competence, compensation and discipline variables on the
performance of partners employees at Central Statistics
Agency (BPS) of Lubuklinggau City. The population of this
work were 163 respondents and a survey based
quantitative method was used in this work. The Structure
Equation Modell (SEM) statistical tool then utilized for
data analysis purposes. The results showed that the sub-
structure of the employee discipline variable was
influenced by the level of competence and compensation.
Structurally, the performance of the partners employees
of BPS of Lubuklinggau City was influenced by
competence, compensation and discipline. However,
compensation had the most dominant influence compared
to the other two variables. This illustrates that the higher
the compensation provided by the organization to its
employees, will have an impact on improving the
performance of its employees.
KEYWORDS
Competence, Compensation, Dicipline, Performance
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
Yohanes Susanto and Astri Riance
The Effect of Competence, Compensation and Discipline on Partners Employees
Performance at Central Statistics Agency 1097
INTRODUCTION
Every nation and state aim to achieve good governance, clean and free from
corruption, collusion and nepotism which are known as the concept of good governance
(Mukartono, 2021). The aim of good governance is to accelerate national economic
growth and to improve the quality of public services to be more efficient and effective.
This can also be achieved by carrying out the duties and obligations of employees
properly in accordance with applicable regulations. In general, every organization has at
least three resources needed to achieve the predetermined goals, namely human resources,
financial resources and physical resources.
Human resources include all people who contribute to doing the work of the
organization and a strong foundation is needed in realizing reliable human resources. One
of which is competence which is very important to achieve successful organizational
goals. Meanwhile, another factor that can affect performance is employee discipline
(Musa, Tumbel, & Wullur, 2021). Obedience to applicable laws and regulations is part of
employee discipline.
The main task of BPS is to provide basic statistical data both for the government
and for the public which are either nationally or regionally as explained in presidential
regulation Number 86 of 2007 and regulation of the Head of BPS Number 7 of 2008
concerning work procedures. Another task of BPS in the regions is to coordinate with
local governments in the context of compiling regional statistics. Currently, BPS
activities are very dense in order to meet data needs that allow each activity to involve
field officers who are recruited from various circles called statistical partners. The
achievement of organizational goals does not only depend on the latest technology and
adequate infrastructure, but also on the human resource factors that carry out the goals or
work of the organization.
BPS agencies that involve employee as field officers must pay more attention to
the quality of employee. A quality employee is an employee who is able to do their job
and can provide maximum output of work performance. There are problems and
challenges found by field observations at BPS employee in Lubuklinggau City. It was
found that the level of compensation received by employees was still not as optimal as
expected by employees and the level of competence possessed by BPS partners was also
not optimal as illustrated in Table 1.
It can be seen from Table 1 that there are several factors which result in the lack
of work motivation possessed by employees of BPJ at Lubuklinggau City. It can clearly
be seen that the overall need for compensation has not been fulfilled for the employees.
Thre are no health insurance, pension and religious holiday allowance. Only salary,
reimbursement of transportation costs and training incentives that can be provided. This
condition definitely greatly affects the employee performance of this agency.
Table 1. Types of compensation given to the employees at BPS of Lubuklinggau
City in the year of 2019
No
Compensation
1
Health insurance (BPJS)
2
Work accident insurance (JKK)
3
Pension
4
Religious holiday allowance (THR)
5
Salary
6
Transportation costs
7
Training Incentives
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There is also a relationship between employee competence and employee
performance (Gachuru, 2020). The educational backgrounds possessed by employees at
BPS of Lubuklinggau City are shown in Table 2. It can be seen that educational level of
employees at BPS of Lubuklinggau City is still below the expected targets. There is only
1 person (0.75%) with Master’s Degree and the majority of employees consisting of 71
people (53.39%) have Bachelor’s Degree or Diploma 4 Degree. The main problem is the
fact that there are 55 people having only high school education (41.35%). This will affect
the competence levels of the employees at BPS of Lubuklinggau City.
Table 2. Employees educational level at BPS of Lubuklinggau City in the year of 2019
No
Educational Level
Frequency
Percentage
1
Master’s Degree
1
0,75
2
Bachelor’s Degree/Diploma 4
71
53,39
3
Diploma 3
6
4,51
4
High School
55
41,35
5
Junior High School
0
0
Total
133
100
Table 3 shows that there is a gap between the time target that has been set and the
target realization time related to the activities of BPS partners activities in Lubuklinggau
City where all activities carried out are not in accordance with the predetermined plan.
This will certainly affect the BPS partners' performance.
Table 3. Partners Activities of BPS of Lubuklinggau City in the year of 2019
No
Routine Survey
Time Target
Realization
Target
Target
achievement
1
2
3
4
Susenas
Wilkerstat
KSA
Sakernas
21 Days
30 Days
7 Days
21 Days
30 Days
35 Days
7 Days
21 Days
No
No
Yes
Yes
There are common indicators which are usually used in measuring individual
employee performance, namely quality of work, quantity of work, timeliness in
completing a job and effectiveness in utilizing organizational resources. According to the
results of (Akhter, Raza, Ashraf, Ahmad, & Aslam, 2016), the impact of performance
appraisals greatly affects employee job satisfaction. The increase of employee job
satisfaction will improve ultimately increase the employee's work results (Salisu,
Chinyio, & Suresh, 2015). Performance has also been stated to be affected by competence
of employees (Silaban, Handaru, & Saptono, 2021). Similarly, there are also claims
stating that compensation (Dahlila & Frinaldi, 2021) and discipline (Maryani, Entang, &
Tukiran, 2021) have effects on employee performance.
Competence has been found to affects employee performance (Kartika &
Sugiarto, 2014; Soetrisno & Gilang, 2018). Similarly, there is an influence between
competence and employee work motivation based on the path analysis (Satria &
Kuswara, 2013). The simultaneous influence of competence on employee performance
is determined by motives, traits, self-concepts, knowledge, and skills (Rande, 2016).
Furthermore, it was found that employee competence greatly affects the performance of
the company or organization (Astuti, 2015). According (Amrulah & DS, 2018), there is a
positive and significant influence between competence and compensation on employee
work motivation. They declared that the greater the compensation given to employees,
Yohanes Susanto and Astri Riance
The Effect of Competence, Compensation and Discipline on Partners Employees
Performance at Central Statistics Agency 1099
there will be a positive impact on work motivation.
A good quality performance can be obtained with hard work and high discipline.
Performance is claimed to be the result of work that has a strong relationship with
organizational strategic objectives (Al-Qudah, Obeidat, & Shrouf, 2020). Performance
was found to be influenced by financial compensation (Iptian, Zamroni, & Efendi, 2020).
According to the results of (Atika & Prasetio, 2017; Dwianto, Purnamasari, & Tukini,
2019; Puspita & Pradhanawati, 2018), compensation has a positive effect on
performance, the higher the compensation given to employees, the better the employees
performance and work motivation. It was also found that compensation in the form of
salary and allowances have a positive effect on performance, while bonus compensation
has no effect on performance and the variables of salary and allowances which are
moderated by motivation have a positive effect on performance (Firmandari, 2014).
Discipline is a person's awareness and willingness to obey organizational
regulations and applicable social norms (Sitopu, Sitinjak, & Marpaung, 2021).
Meanwhile, discipline has been defined as a management action to encourage members of
the organization to meet the demands as a provision (Saputri, Qomariah, & Herlambang,
2020). Discipline indicators include punctuality, utilization of facilities, high
responsibility and obedience to office rules (Permatasari, 2015). According to the results
of (Sofyan, Rahman, Bima, & Nujum, 2016), the higher the level of employee work
discipline, the higher the level of employee performance. This finding is also in alignment
with the results in previous studies (Harahap, Batubara, & Amran, 2020; Tentama, Dewi,
& Meilani, 2020).
RESEARCH METHOD
This study used a survey based quantitative method. The population in this study
were 163 employees and partners of BPS of Lubuklinggau City with educational
background levels as shown in Table 4. SEM with AMOS application was used for
analysis purposes in testing the hypotheses in this study.
Table 4. Educational background levels of the respondents in the year of 2019
Level of education
Frequency
Percentage
Diploma 3
41
25
Bachelor’s Degree
39
23
Master’s Degree
10
6
Senior High School
73
46
Total
163
100
Based on 163 respondents who have filled out the questionnaire in this study, it is
dominated by respondents with education levels of Diploma 3 (25% of respondents),
Bachelor’s Degree (23%), Master’s Degree (6%) and high school education (46%). Table
5 then shows the percentages of respondents’ job positions. The majority of the
respondents have staff positions of 75% of respondents followed by section chief
positions with 23% of the respondents and division head positions with 6% of the
respondents.
Table 5. Percentages of respondents’ job positions in the year of 2018
Position
Frequency
Percentage
Staff
122
75
Section chief
24
15
Head of division
12
7
Head of unit
5
3
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Total
163
100
Overall, the research instruments consist of 42 variable items which include 12
competency items (X1), 10 compensation items (X2), 10 Discipline items (Y1) and 10
Performance variable items (Y2). Each variable is adjusted to the indicator which as a
whole can be seen in the Table 6.
Table 6. Research instruments
No
Variable
Types of Variables
Number of items
1
2
3
4
X1
X2
Y1
Y2
Competence
Compensation
Discipline
Partners’ performance
12
10
10
10
TOTAL
42
Hypotheses
Hypotheses in this work are explained as follows:
1. Competence has an influence on the discipline of BPS partners in
Lubulinggau City.
2. Competence has an influence on the performance of BPS partners in
Lubuklinggau City.
3. Compensation has an influence on the discipline of BPS partners in
Lubuklingau City.
4. Compensation has an influence on the performance of BPS partners in
Lubuklinggau City.
5. Competence and compensation have an influence on the discipline of BPS
partners in Lubuklinggau City.
6. Discipline has an influence on the performance of BPS partners in
Lubuklinggau City.
7. Competence, compensation and discipline have an influence on the
performance of BPS partners in Lubuklingau City.
RESULT AND DISCUSSION
A. CFA Models
Confirmatory factor analysis (CFA) full model of this work will determine the
effect of competence, compensation and discipline on the performance of the partners
employees at BPS of Lubuklinggau City. However, before testing the CFA model, it is
necessary to do a CFA of the exogenous and endogenous variables.
CFA aims to test the un-dimensionality of the forming dimensions of each latent
variable. The exogenous construct consists of the competence variable with nine
indicators (X1.1-X1.9), compensation variable with nine indicators (X2.1-X2.9) and
discipline variables with nine indicators (Y1.01-Y1.09). Figure 1 shows that all indicators
of the exogenous construct of competence variables have a loading factor value of > 0.5.
The standard loading factor value of ≥ 0.5 is considered as very significant (Mustafa,
Nordin, Razzaq, & bin Ibrahim, 2020). It also indicates a good level of convergent
validity (Baistaman, Awang, Afthanorhan, & Rahim, 2020).
Yohanes Susanto and Astri Riance
The Effect of Competence, Compensation and Discipline on Partners Employees
Performance at Central Statistics Agency 1101
Figure 1. CFA estimation model of competence exogenous variables
Figure 2 shows that all indicators of the exogenous construct of the compensation
variable also have a loading factor value of > 0.5 which is very significant and indicates a
good level of convergent validity.
Figure 2. CFA estimation model of compensation exogenous variables
Discipline exogenous variables are then shown in Figure 3. It is known that all
indicators Y1.01 to Y1.09 have a significant value of > 0.5 showing their significances
and indicating good level of convergent validity.
Figure 3. CFA estimation model of discipline exogenous variables
Eduvest – Journal of Universal Studies
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1102 http://eduvest.greenvest.co.id
Figure 4 shows that all indicators of performance variables Y2.1 to Y2.9 have a
significant value of > 0.5 and it is considered very significant and indicates the level of
convergent validity.
Figure 4. CFA of endogenous construct performance variables
SEM Full Model analysis of the four variables (compensation, competence,
discipline and performance) of BPS partners employees in Lubuklinggau City is depicted
in Figure 5.
Figure 5. CFA Full Model
Based on the Figure 5 above, it is known that all indicators in the full model have a
significant value of > than 0.5. It is considered as very significant and indicates a good
level of convergent validity. Thus, the dimensions and indicators in the CFA model of the
Yohanes Susanto and Astri Riance
The Effect of Competence, Compensation and Discipline on Partners Employees
Performance at Central Statistics Agency 1103
exogenous construct and endogenous construct variables are declared valid and
significant. Furthermore, the full model estimation test was carried out simultaneously.
The goodness of fit (GoF) index of exogenous variables and endogenous variables are
shown in Table 7.
Table 7. Goodness of fit index full model
Indicator
Cut-off Value
Result
Conclusion
X
2
– Chi-square (df = 5,
p = 0.0000)
< 41.40
291.09
Marginal fit
Sign. Probability
≥ 0.05
0.0000
fit
Df
≥ 0
146
fit
GFI
≥ 0.80
0.84
fit
AGFI
≥ 0.80
0.77
Marginal fit
CFI
≥ 0.85
0.96
fit
TLI/NNFI
≥ 0.85
0.96
fit
NFI
≥ 0.85
0.92
fit
IFI
≥ 0.80
0.96
fit
RMSE
≤ 0.08
0.095
fit
RMR
≤ 0.05
0.031
fit
The results of GoF in Table 7 above show a fit GoF value and accepted because of
a good structural equation and at the critical ratio (CR) value, the model shown as
significant at the level > 1.96. The following structural equation is then obtained.
Structural equation:
Performance=-0.020 Competence + 0.830 Compemsation - 0.31 Diciplin + e…………(1)
Sub-structure equation:
Disiplin=0.032 Compensation + 0.672 Competence + e ………………………………(2)
The results of the full model estimation in Figure 5 are a reference to test the three
hypotheses which are previously set. Then the results of the hypotheses test will
determine the final conclusion. The results of the Amos program calculations each
parameter is shown in Table 8.
Table 8. Regression Weights Parameters Test Results (Group number 1 - Default model)
Label
Estimate
S.E.
C.R.
P
Discipline
<---
Competence
.672
.213
3.158
.002
Discipline
<---
Compensation
.032
.037
.862
.389
Performance
<---
Competence
-.020
.070
-.281
.778
Performance
<---
Compensation
.830
.083
9.969
***
Performance
<---
Discipline
-.031
.044
-.711
.477
Hypotheses tests
Based on the results of Amos software calculations above, the estimated influence
of the competence of human resources of BPS partners in Lubuklinggau City on
performance is -0.020 or (20%) and CR is -0.281 where the t-table criterion is > 1.96.
This reflects the influence as negative and insignificant. The estimated effect of
compensation on human resources performance of BPS partners in Lubuklinggau City is
0.830 and the CR value is 9.969. The criteria for t table found as > 1.96 which shows that
there is an influence between compensation on performance. The predicted effect of
compensation on employee performance of BPS partners in Lubuklinggau City is 0.830
and the CR value is 9.969 and the criteria for t table obtained as > 1.96 which indicates
Eduvest – Journal of Universal Studies
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that there is an influence between compensation on performance.
Estimating the effect of competence and compensation together on the performance
of BPS partners in Lubuklinggau City was done by GoF criteria in relation to hypothesis
4 meeting the criteria for a good fit as shown in Table 7 above. This reflects the positive
and significant influence between competence and compensation together on the
performance of BPS partners in Lubuklinggau City. Predicting the effect of competence
and discipline together on the performance of BPS partners in Lubuklinggau City was
conducted by referring to the criteria for GoF index which were obtained in relation to
hypothesis 4 achieving the criteria for good fit as indicated in Table 7. This shows that
there is a positive and significant influence between competence and discipline together
on the performance of BPS partners in Lubuklinggau City.
The effect of compensation and discipline together on the performance of BPS
Partners in Lubuklinggau City was predicted by referring to the criteria for GoF index
which are obtained in relation to hypothesis 4 matching the criteria for good fit as shown
in Table 7. This indicates the positive and significant influence between compensation
and discipline together on the performance of BPS partners in Lubuklinggau City.
Predicting the impact of competence, compensation and discipline together on the
performance of BPS partners in Lubuklinggau City was done by referring to the criteria
for GoF index as obtained in relation to hypothesis 4 which meets the criteria for good fit
as illustrated in Table 7. This shows that there is a positive and significant influence
between competence, compensation and discipline together on the performance of BPS
Partners in Lubuklinggau City.
Human resource competence has been shown of having a negative effect on the
performance of BPS partners in Lubuklinggau City. This condition is supported by
effective and efficient working conditions by employees as shown in Figure 5 with
loading factor indicator (X1.4) of 2.63 or 26.3%. On the other hand, compensation has a
positive effect on the performance of BPS partners in Lubuklinggau City. This influence
is supported by the need for a reward or a bonus from superiors if the work meets the set
targets. This is seen in the loading factor indicator in Figure 5 where X2.3 found to be
1.23 or 12.3%. Nevertheless, discipline has a negative effect on the performance of BPS
partners in Lubuklinggau City. This influence is supported by the need for strict sanctions
from agency leaders for violations of employee discipline as shown in Figure 5 where
Y1.06 observed to be 1.21 or 12.1%
.
CONCLUSION
Each variable partially affects the performance of BPS partners employees of
Lubuklinggau City. However, the compensation variable has the most dominant
influence. It is also necessary to have support from each variable in order to realize a
performance which is able to meet the targets that have been set and to meet national
standards. In particular, it is mandatory for regional statistical data managers to have
competence in the field of data management. Performance of the BPS partners employees
of Lubuklinggau City is simultaneously influenced by competence, compensation and
discipline. Nevertheless, compensation only partially affects performance.
Yohanes Susanto and Astri Riance
The Effect of Competence, Compensation and Discipline on Partners Employees
Performance at Central Statistics Agency 1105
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