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The Impact of Career Path and Compensation on Employee Engagement at PT. INKA Multi Solusi

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

Listed:
  • Muhammad Akbar Ramadhan

    (Hasanuddin University)

Abstract

This study aims to ascertain and examine the ways in which career path and employee salaries affect job engagement at PT. INKA Multi Solusi. This study was carried out by examining the connection between the elements of career path, compensation, and work engagement. This study used quantitative methods by applying data collection techniques and statistical analysis tools to evaluate predetermined hypotheses. The study was conducted at PT INKA Multi Solusi, Madiun Regency, with a research population consisting of 35 participants, who are organic employees from the Directorate of Finance, HR, General Affairs, and Risk Management. Saturated sampling was the method employed, whereas the sample consisted of the entire population. Questionnaires and literature reviews were used to gather data. Validity and reliability tests occurred using Cronbach’s Alpha and Pearson’s correlation test. The results showed that the variables career path (X1), compensation (X2), and work engagement (Y) met the validity and reliability criteria. The hypothesis was tested using multiple regression analysis, and the findings showed compensation and career path have a substantial impact on job engagement. Simultaneous testing (F-test) showed that these two variables together significantly impact employees’ engagement at work. According to the coefficient of determination (R2), career path and compensation may account for 54.9% of the variation in work engagement. Career path has a greater influence compared to compensation in increasing employee engagement at PT INKA Multi Solusi.

Suggested Citation

  • Muhammad Akbar Ramadhan, 2025. "The Impact of Career Path and Compensation on Employee Engagement at PT. INKA Multi Solusi," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 1031-1043, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_85
    DOI: 10.2991/978-94-6463-758-8_85
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