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Islamic Rural Bank Employee Performance: Role of Motivation, Compensation, and Work Environment

Author

Listed:
  • Az-zaakiyyah, Hizbul Khootimah

    (Universitas Islam Negeri Sunan Kalijaga Yogyakarta)

  • Hidayat, Farid

    (Universitas Islam Negeri Sunan Kalijaga Yogyakarta)

  • Almaududi Ausat, Abu Muna

    (Universitas Subang Jawa Barat)

  • Suherlan, Suherlan

    (Universitas Subang Jawa Barat)

Abstract

Rural banksin Indonesia have beenexperiencing a significant growth. Each company has diverse workforce. Excellent employees will contribute significantly toachievethe company's goals. However,some companies disregard any factors that can lead to optimal employee performance.The purpose of this study wasto determine the effect of motivation, compensation, and work environment on the employee performance. This wasa case study conducted at PT. BPRS MadinaMandiriSejahtera Yogyakarta. A quantitative technique based on variance Structural Equation Modeling (SEM) and Partial Least Square (PLS) was used to acquire a better understanding of the relationship between variables. Questionnaires were used to collect28responses from the company’semployees. The findingrevealed that compensation wasa deterrent for companies that have not received awards in the previous five years. As a result, the company’s management must pay more attention to work compensation related to more efficient and effective use of human resources. The higher the employees’ salary, the more achievements achieved by the employees. The higherthe number ofhigh-performingemployees,the lower the cost of non-essential work.

Suggested Citation

  • Az-zaakiyyah, Hizbul Khootimah & Hidayat, Farid & Almaududi Ausat, Abu Muna & Suherlan, Suherlan, 2022. "Islamic Rural Bank Employee Performance: Role of Motivation, Compensation, and Work Environment," EkBis: Jurnal Ekonomi dan Bisnis, UIN Sunan Kalijaga Yogyakarta, vol. 6(1), pages 44-58, June.
    • Handle: RePEc:ris:ekbisj:1551
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    More about this item

    Keywords

    Motivation; Compensation; Work environment; employee performance; SEM-PLS;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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