How to cite:
Rina Wijayanti, Gancar Candra Premananto. (2022). The Effect of
Remuneration, Work Environment, and Employee Welfare Programs
on Work Productivity at PT Petrokimia Kayaku. Journal Eduvest. Vol
2(8): 1.469-1.478
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Eduvest –Journal of Universal Studies
Volume 2 Number 8, August, 2022
p-ISSN 2775-3735-e-ISSN 2775-3727
THE EFFECT OF REMUNERATION, WORK ENVIRONMENT,
AND EMPLOYEE WELFARE PROGRAMS ON WORK
PRODUCTIVITY AT PT PETROKIMIA KAYAKU
Rina Wijayanti, Gancar Candra Premananto
Universitas Airlangga, Indonesia
Email: [email protected], gancar-c-p@feb.unair.ac.id
ABSTRACT
The purpose of this study was to determine the effect of
remuneration on work productivity, the effect of the work
environment on work productivity, the effect of employee
welfare programs on work productivity, the effect of the three
factors mentioned above on work productivity and to find out
which variables have the most influence on work productivity.
The research approach used in this study is a quantitative
approach. In this study, data and information were obtained
from respondents using a questionnaire. Types of data sources
used in this study, namely quantitative data. The data analysis
technique in this study used basic statistics, namely descriptive
analysis. Based on the results of the calculation of the t-test
table (table 18) it can be seen that the confidence level is 0.05
and the t-table value is 2.05, the calculated remuneration
value is 8.042 and the probability value of t-value is 0.000
means that Ho is rejected and Ha is accepted, then this means
that remuneration has a significant effect on employee
productivity. From the results of the analysis, it is known that
the remuneration variable consisting of elements of work
standards, working time, number of products, product quality
and increasing work ability, each has a significant effect on
work productivity variables.
KEYWORDS
Remuneration, Work Environment, Employee Welfare
Programs, Work Productivity
Rina Wijayanti, Gancar Candra Premananto
The Effect of Remuneration, Work Environment, and Employee Welfare Programs on
Work Productivity at PT Petrokimia Kayaku 1.470
This work is licensed under a Creative Commons
Attribution-ShareAlike 4.0 International
INTRODUCTION
In an effort to increase employee work productivity, not only relying on the quality
of the goods produced, but companies also need to pay attention to factors that can affect
employee productivity, such as the effect of remuneration satisfaction, work environment
and welfare programs for employees (Kabir & Parvin, 2011; Muguongo et al., 2015). By
paying attention to the factors that can affect the level of employee productivity, the
company can better know and understand the needs and desires of its employees so that
employees can feel more satisfied or feel more cared for by the company and can carry out
their work activities optimally (Jean et al., 2017; Raziq & Maulabakhsh, 2015).
Employee work productivity according to the National Productivity Council
(Indriyani, 2014) has an understanding as a mental attitude that always holds the view that
the quality of work life of employees today must be better than yesterday and the quality
of work life of employees tomorrow must be better than today. Meanwhile, in general, as
stated by (Nofriyanti & Kuswantoro, 2019) employee productivity is a comparison between
the sources of results that can be achieved by the company and the overall resources used
(Berliana et al., 2018; Zhu et al., 2014). In other words, employee work productivity has
two dimensions of understanding, the understanding of the first dimension is the level of
effectiveness that leads to optimal work results, namely achieving target results related to
quality, quantity and working time. While the understanding of the second dimension is the
level of efficiency related to efforts to compare inputs with the realization of their use or
work activities (Sunarsi, 2018).
In order to increase employee work productivity, the most influential factor is
remuneration for employees, because the size of the remuneration received by employees
is very decisive in motivating employees to be able to work harder, so every company is
expected to pay attention to aspects of remuneration for employees. in accordance with the
ability of employees to produce higher quality products (Purwanto, 2016).
In addition to the effect of remuneration satisfaction, other factors that can affect
employee work productivity are work environment factors, employee welfare programs,
and post-employment welfare programs. A work environment that is created properly, in
accordance with the needs of employees in carrying out work activities, will be able to
provide a separate satisfaction for employees so that the morale for employees to work
harder in producing higher quality products for the company (Muayyad & Gawi, 2016)
In improving the results of employee work productivity and for the creation of higher
quality products, companies are also required to provide work welfare programs for
employees in the form of employee welfare programs (Djuwita, 2011; Kandou, 2013). If
the welfare programs for employees provided by the company can provide individual
satisfaction for employees, then in carrying out work activities employees can feel more
secure, so that the quality of work and the quality of the products produced will also be
guaranteed. A successful company continues to improve employee productivity, but
basically it all depends on the quality of its human resources, namely as employees whether
employees can work more effectively or not. The same thing happened in the Pesticide
Company PT Petrokimia Kayaku, where this company wants to utilize human resources
more optimally, with the aim that employees can work effectively and efficiently.
PT Petrokimia Kayaku as one of the subsidiaries under the Petrokimia Gresik Group
with the highest net profit of forty-five to fifty billion rupiah per month in the last two
years, in its efforts to increase the productivity of its employees, cannot be separated from
Eduvest –Journal of Universal Studies
Volume 2 Number 8, August 2022
1.471 http://eduvest.greenvest.co.id
the factors that exists in each of its workforce or employees, and views its employees as
one of the most important resources owned by the company. The purpose of this study was
to determine the effect of remuneration on work productivity, the effect of the work
environment on work productivity, the effect of employee welfare programs on work
productivity, the effect of the three factors mentioned above on work productivity and to
find out which variables have the most influence on work productivity.
RESEARCH METHOD
The research approach used in this study is a quantitative approach. This approach
is generally implemented in inferential research (in order to test hypotheses) and puts the
conclusions on a null probability of rejecting the hypothesis. Causal research is used to
identify cause-and-effect relationships. When something causes an effect (independent
variable), it means to bring or make something happen (dependent variable) (Graue, 2015;
Johnston, 2014). In this study, data and information were obtained from respondents using
a questionnaire.
Types of data sources used in this study, namely quantitative data. Quantitative data
is data in the form of numbers or numbers. The data can be in the form of the age of the
informant, gender, age, and other information related to numbers.
In this study, the population is the entire head office of PT Petrokimia Kayaku as
many as 300 employees. The number of samples used in this study were 125 respondents
and were considered to meet the criteria and represent the desired population in the study.
The characteristics of the sample in this study are permanent employees of PT Petrokimia
Kayaku who have worked for at least 2 years. The data analysis technique in this study
used basic statistics, namely descriptive analysis.
RESULT AND DISCUSSION
Research Instrument Testing
Validity test
Validity is an index that shows the extent to which a measuring instrument measures
what it wants to measure. Testing the validity in this study using SPSS with a significant
level of 5%. The results of the validity test for the questionnaire show that all statements
are valid because they are positively correlated with a probability of <0.05. The full validity
test results can be seen in the appendix.
Remuneration Variable
Table 1 Test Results of Remuneration Variable Questionnaire Validity
Source: processed from primary data of PT Petrokimia Kayaku 2020
From the results of the validity test for the remuneration variable, it can be seen
that each question item is valid because it has a probability smaller than 0.05
Rina Wijayanti, Gancar Candra Premananto
The Effect of Remuneration, Work Environment, and Employee Welfare Programs on
Work Productivity at PT Petrokimia Kayaku 1.472
Work Environment Variables
Table 2 Validity Test Results for Work Environment Variables
Source: processed from primary data of PT Petrokimia Kayaku 2020
From the results of the validity test for the work environment variable, it can be
seen that each question item is valid because it has a probability that is smaller than 0.05.
Employee Welfare Program Variable
Table 3 Test Results of Variable Validity Program Welfare Program for Employees
Source: processed from primary data of PT Petrokimia Kayaku 2022
From the results of the validity test for the employee welfare program variable, it
can be seen that each question item is valid because it has a probability smaller than 0.05.
Work Productivity Variables
Table 4 Validity Test Results of Work Productivity Variables
Source: processed from primary data of PT Petrokimia Kayaku 2022
From the results of the validity test for the work productivity variable, it can be
seen that each question item for the work productivity variable has a probability that is
smaller than 0.05.
Reliability Test
Reliability test shows the extent to which the measuring instrument can be trusted
or relied on. The measurement results can be trusted if in several times the measurement of
the same subject group obtained relatively the same results. Reliability calculation is done
by SPSS computer program assistance.
Table 5 Reliability Test Results
Source: processed from primary data of PT Petrokimia Kayaku 2022
The reliability value between 0.4 to 0.7 is categorized as acceptable reliability
(Sekaran, 2000: 312), so that in this study the reliability is acceptable.
Frequency Distribution
Lingkungan Kerja
Pasca Kerja
Remunerasi
Produktivitas
Kesejahteraa
Lingkungan Kerja
Eduvest –Journal of Universal Studies
Volume 2 Number 8, August 2022
1.473 http://eduvest.greenvest.co.id
In this analysis, information will be presented in the form of tables and descriptions
of the answer categories, frequencies, and percentages. The following is the frequency
distribution of the answers for each variable.
Remuneration Variable
The remuneration in this study includes elements of work standards, the suitability
of remuneration with the number of products created, the suitability of remuneration with
product quality and work ability. Answers from respondents can be seen in the following
table:
Table 6 Frequency Distribution of Remuneration Variables
Source: processed from primary data of PT Petrokimia Kayaku 2022
Based on the table, as many as 13 employees (43%) think that the remuneration
received is in accordance with work standards. As many as 22 employees (73%) stated that
the remuneration received was in accordance with the time of remuneration, while 17
employees (57%) stated that the amount of remuneration received was in accordance with
the work agreement. As many as 15 employees (50%) think that the remuneration received
is in accordance with the maximum quality of work. Meanwhile, in terms of remuneration,
16 employees (52%) stated that remuneration can improve employee work finances.
Work Environment Variables
The work environment in this study includes elements of standard work, working
time, number of products, product quality and capacity building. Answers from
respondents can be seen in the following table:
Table 7 Frequency Distribution of Work Environment Variables
Source: processed from primary data of PT Petrokimia Kayaku 2022
Based on the table, as many as 14 employees (48%) think that the work environment
is in accordance with employee work standards. As many as 23 employees (73%) stated
that the work environment was in accordance with the employee's working time while 18
employees (60%) stated that the work environment was in accordance with the number of
products that must be achieved by employees at work. As many as 18 employees (60%)
think that the work environment is in accordance with the quality of the products that can
be achieved by employees, while as many as 16 employees (52%) state that the work
environment can improve employee work abilities.
Variable welfare program program for employees
The welfare program for employees in this study includes elements of work
standards, working time, number of products, product quality, and improvement of work
ability. Answers from respondents can be seen in the following table:
Table 8 Frequency Distribution of Employee Welfare Program Variables
Rina Wijayanti, Gancar Candra Premananto
The Effect of Remuneration, Work Environment, and Employee Welfare Programs on
Work Productivity at PT Petrokimia Kayaku 1.474
Source: processed from 2022 primary data
Based on the table, as many as 19 employees (66%) think that the work welfare
program is in accordance with the welfare program standards, as many as 14 employees
(48%) state that the work welfare program is in accordance with working hours, while as
many as 17 employees (57%) think that the work welfare program is in accordance with
the number of products that must be achieved by employees. As many as 14 employees
(49%) think that the work welfare program is in accordance with the product quality that
must be achieved. 23 employees (77%) state that the work welfare program can improve
work ability.
Work Productivity Variables
Work productivity in this study includes elements of work standards, working time,
number of products, product quality and improvement of work ability. Answers from
respondents can be seen in the following table:
Table 9 Frequency Distribution of Work Productivity Variables
Source: processed from primary data of PT Petrokimia Kayaku 2022
Based on the table, as many as 17 employees (58%) feel that they can work according
to the standard with the work standard. As many as 19 employees (66%) stated that they
could work according to their working hours, while 15 employees (12%) stated that they
could make products according to the company's product targets.
As many as 15 employees (50%) think that they can work with quality in accordance
with company regulations and as many as 13 employees (44%) state that they can improve
their work abilities.
Descriptive Analysis
The distribution of questionnaires as many as 30 copies of the questionnaire given
to the respondents. And of the 30 questionnaires all can be used as material for analysis
because all questionnaires meet the criteria that have been determined by the author.
From the results of data processing from 30 collected questionnaires, the results of
the mean value of each variable are as listed in table 10 below:
Table 10 Results of Descriptive Analysis
Source: processed from primary data of PT Petrokimia Kayaku 2022
Remuneras
Lingkungan
Eduvest –Journal of Universal Studies
Volume 2 Number 8, August 2022
1.475 http://eduvest.greenvest.co.id
For the remuneration variable, the mean value is 29.13 with a standard deviation of
2.12. Work environment variable, the mean value is 30.25 with a standard deviation of
2.14. The variable of the welfare program program for employees has a mean value of
25.22 with a standard deviation of 2.38. Mean value of work productivity variable is 44.20
with a standard deviation of 4.53. From the data processing, it can also be seen that the
correlation between variables is as follows:
Table 11
Source: processed from primary data of PT Petrokimia Kayaku 2022
Sig level of significant 0.05
From the table above, it can be seen the correlation between the independent
variable and the dependent variable, and the lowest is the variable. Work environment
(0.065) and the highest variable is employee welfare program (0.698).
Quantitative Analysis
Multiple Linear Regression Analysis
Used to determine the effect of remuneration, work environment and employee
welfare programs on employee productivity.
The equation is as follows:
Y = + 1X1 + 2X2 + 3X3 + e
Information:
Y = the magnitude of the productivity position
= constant
X1 = remuneration
X2 = work environment
X3 = welfare program for employees
n = regression coefficient
e = error (confounding variable)
Table 12 Multiple Linear Regression
Source: processed from primary data of PT Petrokimia Kayaku 2022
From the results of data processing with the help of the SPSS program, the following
multiple linear regression equations were obtained:
Y = -27.037 + 1.135X1 + 0.666X2 + 0.284X3 + e
The equation means:
The constant value with a negative sign indicates that if there is no remuneration,
work environment and employee welfare program variables, there will be job
dissatisfaction, or the employee's work productivity is relatively small. The value of the
Remunerasi
Kesejahteraan
Lingkungan Kerja
Rina Wijayanti, Gancar Candra Premananto
The Effect of Remuneration, Work Environment, and Employee Welfare Programs on
Work Productivity at PT Petrokimia Kayaku 1.476
regression coefficient for the remuneration variable is positive, indicating a unidirectional
relationship. This means that if the remuneration given by the company is increased, the
work productivity of employees will also increase, and vice versa. The regression
coefficient value for the work environment variable is positive, indicating a unidirectional
relationship. This means that if the work environment is getting better, the work
productivity of employees will also increase.
The regression coefficient value for the employee welfare program variable is
positive, indicating a unidirectional relationship. This means that if the employee welfare
program provided by the company is increased, the employee's work productivity will also
increase, and vice versa.
The regression coefficient of each variable which is positive means that the four
independent variables each have an influence in the direction of the dependent variable,
namely work productivity.
F Uji test
Used to determine whether the independent variables, namely remuneration, work
environment and employee welfare programs together have a significant effect on the
dependent variable, namely the work productivity variable.
The test begins with the null hypothesis (Ho), which states that there is no significant
effect jointly on the independent variable on the dependent variable. Then proceed with the
hypothesis that is not equal to zero (Ha), which states that there is a significant effect
together the independent variables on the dependent variable; test steps as follows:
Table 13 Multiple Linear Regression
Source: processed from primary data of PT Petrokimia Kayaku 2022
Based on the results of the calculation table above, it can be seen that the calculated
F value is 50,324 which is greater than the F table of 2.96 or the probability value of F is
0.000 which is smaller than 0.05. From these results, it is found that Ho is rejected and Ha
is accepted.
Test steps:
Determine the formulation of null and alternative hypotheses
Ho : 0 = 0 (the independent variables together do not affect the dependent variable, namely
work productivity).
Ha : a 0 (independent variables jointly affect the dependent variable, namely work
productivity).
Level of significant (α) = 0.05
Test criteria:
Ho is accepted and Ha is rejected if F count < F table (probability of F value > 0.05).
Ho is rejected and Ha is accepted if F count > F table (probability of F value < 0.05).
The probability is 0.000 0.05 then Ho is rejected. This means that the work
environment remuneration variable and employee welfare program together have a
significant effect on the work productivity variable. Thus, the first hypothesis which states
that the remuneration, work environment, and welfare program variables together have a
significant effect on work productivity is proven.
T-test
Eduvest –Journal of Universal Studies
Volume 2 Number 8, August 2022
1.477 http://eduvest.greenvest.co.id
The t-test is used to test whether the variable remuneration, work environment and
welfare programs for work employees each have an influence on the work productivity
variable. The test starts from the null hypothesis (Ho) which is that there is no separate
significant effect between the independent variables on the dependent variable, then
continues with the non-zero hypothesis (Ha) which states that there is a separate significant
effect between the independent variables on the dependent variable.
Table 14 t test results
Source: processed from primary data of PT Petrokimia Kayaku 2022
CONCLUSION
Based on the results of the calculation of the t-test table (table 14) it can be seen that
the confidence level is 0.05 and the t-table value is 2.05, the calculated remuneration value
is 8.042 and the probability value of t-value is 0.000 means that Ho is rejected and Ha is
accepted, then this means that remuneration has a significant effect on employee
productivity. From the results of the analysis, it is known that the remuneration variable
consisting of elements of work standards, working time, number of products, product
quality and increasing work ability, each has a significant effect on work productivity
variables.
Based on the results of the calculation of the t-test table (table 14) it can be seen that
the confidence level is 0.05 and the t-table value is 2.05, the calculated value of the work
environment is 2.129 and the probability value of t-value is 0.038 which means that Ho is
rejected and Ha is accepted, then this means that the work environment has a significant
effect on employee productivity. From the results of the analysis, it can be seen that the
work environment variables consisting of elements of work standards, working time,
number of products, product quality and increasing work ability have a significant effect
on work productivity variables.
Based on the results of the calculation of the t-test table (table 14) it can be seen that
the confidence level is 0.05 and the t-table value is 2.05 the calculated value of the
employee welfare program is 3.985 and the probability value of t-value is 0.000 means that
Ho is rejected and Ha is accepted, then this is means that the employee welfare program
variable has a significant effect on employee work productivity. From the results of the
analysis, it is known that the employee welfare program variables consisting of elements
of work standards, working time, number of products, product quality and increasing work
ability, each have a significant effect on work productivity variables.
Seeing the t value of each independent variable separately has a significant effect on
employee productivity. By looking at the t-value of each independent variable, it will be
seen that the remuneration variable has the highest t-count value among the other
independent variables, which is 8.042. This shows that the remuneration variable is the
most influential factor on work productivity. Thus, the second hypothesis which states that
the independent variable with the strongest influence on the independent variable is the
remuneration variable can be proven.
Test the coefficient of determination (R2) to see what proportion of variations of
Remunerasi
Kesejahteraan
Lingkungan Kerja
Rina Wijayanti, Gancar Candra Premananto
The Effect of Remuneration, Work Environment, and Employee Welfare Programs on
Work Productivity at PT Petrokimia Kayaku 1.478
the independent variables together in influencing the dependent variable, if the value of R2
is close to 1 then the contribution to the dependent variable is getting bigger, meaning that
the R2 used is getting stronger to explain the variation of the dependent variable. On the
other hand, if the value of R2 is close to zero, it means that the independent variable has
absolutely no effect on the dependent variable so that the R2 model is not appropriate to
use.
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