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THE EFFECT OF HR QUALITY ON THE COMPENSATION
SYSTEM AND EMPLOYEE PERFORMANCE AT PT PRIMISSIMA
IN SLEMAN REGENCY
Wahyu Satrio Nugroho, Alldila Nadhira Ayu Setyaning, Handrio Adhi Pradana
Universitas Islam Indonesia, Indonesia
Email: 19311230@students.ac.uii.id, [email protected]c.id, handrio.pradana@uii.ac.id
Abstract
The lack of quality human resources at work is the main problem highlighted by PT
Primissima located in Sleman Regency, Yogyakarta. In order to have superior, resilient
human resources, and be able to maintain the existence of competitiveness and brand
equity in the market, the company must be able to guarantee the performance of its
human resources while working in the company. With appropriate compensation, HR
will be able to work optimally and company goals will be achieved efficiently and
effectively. The purpose of this internship is to determine the effect of HR quality on the
employee salary payment compensation system and find out the improvement of
employee performance through the provision of compensation systems that have been
implemented by the company at PT Primissima. PT Primissima which was formed on
June 22, 1971 is a joint venture between the Indonesian Batik Cooperative Association
(GKBI) and the Government of the Republic of Indonesia which aims to be able to
produce fine batik raw materials, namely Primissima cloth (mori) to meet national needs,
which were previously taken through production or imports from China, Japan, and
India. The research approach carried out by the author is a qualitative approach. The
author's achievement while undergoing an internship was working in the personnel
division of PT Primissima. In addition, the author had the opportunity to observe and
participate in employee coaching at PT Primissima, and follow a series of batik fabric
making processes at PT Primissima. In the midst of uncertain HR quality, it is necessary
to conduct careful and strict recruitment. Prospective workers or employees must meet
the requirements of the PT Primissima company. One of the concerns when accepting
prospective employees is in terms of soft skills and hard skills. Because it is an obstacle
of the company PT Primissima at this time. Researchers in carrying out internships feel
comfortable and smooth in carrying out work activities in the company where
researchers do internships. Researchers received a good response and treatment from PT
Primissima. A comfortable work environment makes researchers comfortable when
undergoing the internship research process. The obstacles that researchers encounter in
this internship activity include the busy staff of the company, so researchers find it
difficult if they want to ask questions or discuss.
Keywords
: Performance, Compensation, Quality of Human Resources
INTRODUCTION
Injuruty: Interdiciplinary Journal and Humanity
Volume 2, Number 9, September 2023
e-ISSN: 2963-4113 and p-ISSN: 2963-3397
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According to Panggabean (2020), Human Resources are resources in organizations
to obtain and achieve goals and targets and realize their vision and mission. Human
Resources are living workers involved in the company. Although human resource
management is a process aimed at recruiting, training, evaluating, and rewarding
employees, attention must be paid to their working relationships, including the health,
safety, and legal issues faced by these human resources departments.
Employees are human resources who work to complete a number of predetermined
goals and targets. The duties of employees in the field of service must be based on the
competence and professional insight of the employee concerned. Similarly, the quantity
of work charged to employees must be in accordance with their work capacity, in order
to complete the work meet expectations in terms of quality, quantity, time and cost.
Today, companies often face problems due to the lack of qualified human resources
(employees) in the workplace (Renwick et al., 2013). After being traced, the problem lies
in the absence of adequate remuneration for workers, which leads to a lack of morale
which negatively affects the organization. With superior and persistent human resources,
companies must be able to ensure the performance of their human resources serving the
company to maintain quality in an increasingly fast market. With the right remuneration,
HR can function optimally and organizational goals can be achieved effectively and
efficiently.
Business can exist and be able to compete, therefore it requires strong human
resources that can be a power and maintain stability for the progress of the company.
Employee discipline is a problem faced by PT Primissima today and this can have an
impact on its performance to be less than optimal. This indiscipline includes that there
are still many employees who are absent from work for various reasons and there are still
some employees who are late in coming to work. This illustrates that the lack of quality
of employee human resources can be caused by various things, one of which is the lack
of appropriate compensation system carried out by the company.
Efforts to improve employee performance are by giving awards. Compensation is
an overall agreement on financial and non-financial compensation of the employer and
worker. According to Swasto (2011), Compensation is something received by employees
in the form of rewards from the energy and thoughts they give to the company. Kurniawan
et al (2020) states compensation has a real and positive impact on employee performance.
Appreciation to employees by the company becomes an interesting thing and
motivates them in their efforts to improve their performance, discipline and have high
commitment which has an impact on employees to have even better achievements.
Whether higher rewards lead to better performance.
By paying them wages done right, rewards can help organizations solve problems
and achieve their goals and attract, retain, and develop good employees. On the other
hand, without adequate compensation, current employees are very likely to leave the
company, and relocation is not easy, since retraining must be selected and implemented
which takes a lot of time. In addition, the consequences of salary dissatisfaction lead to
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decreased performance, increased complaints, strikes, and physical and psychological
measures such as increased absenteeism and employee exchanges (Rivai dan Ella, 2011).
Compensation is a way for companies to improve work performance, work
motivation and other things related to labor needs is compensation. Compensation or
remuneration is the provision of direct or indirect, financial and non-financial rewards
that are fair and appropriate for employees for their contributions in achieving the
company's organizational goals (Matloob et al., 2021). Compensation is a reward for
services or remuneration provided by the company to the workers, because these workers
have contributed energy and thoughts for the progress of the company to achieve the goals
that have been set (Asmayana, 2018). Compensation provided by PT Primissima can be
in the form of financial and non-financial compensation. Direct financial compensation
includes salaries or wages and incentive payments, and then indirect financial
compensation such as social security, health care assistance, vacations, national holidays
and THR, maternity leave, annual leave, and others. Furthermore, non-financial
compensation can be in the form of job rewards and work environment.
Organizations are important to create rewards that motivate employees to do a better
job. The efforts made by PT Primissima in improving employee performance are by
giving awards. Awarding creates a two-way relationship between the organization and
employees. Salary is the remuneration received by employees for the work they do in the
organization. PT Primissima as a company engaged in textile export-import requires the
right human resources in every task and responsibility. Employees are company assets
that determine the success of the company through employee performance, so it is
necessary to know about the employee compensation system of PT Primissima in Sleman
Regency in an effort to improve employee and company performance. This is supported
by research Silalahi (2022) Stating a share in education is a way to improve the quality
of human resources in formal organizations in order to obtain new knowledge that
employees bring into the organization. Employee education provides new information
and insights about the world of work, which has a good impact on job satisfaction. In
addition to education, training programs are elements that can be used in improving the
quality of the workforce. Research Andriani (2022) Stating rewards affects employee
performance because rewards are an indication that employees are motivated to maintain
their performance. Although efficiency is the result of employees performing their duties
as determined by the company to achieve company goals, after employees perform their
duties well, the company is also obliged to pay reasonable compensation to employees.
This compensation can be in the form of salary, social insurance, benefits and others.
Then there is a continuity between employees and the organization that is mutually
beneficial. Arifudin (2019) said that the salary level describes the status, appreciation,
and fulfillment of employee needs. If a worker's salary is higher, it means that his
position is higher, his position is better, and his needs are also increasing. Thus, higher
job satisfaction also affects the improvement of employee work results . Nitisemito
(2016) explained that salary is not only important because of the main motivation of
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employees, but the issue of salary is also important because the salary given has a major
impact on employee morale and motivation. Therefore, companies should determine the
right salary to support the achievement desired by the organization effectively and
efficiently. Related to the description above, this study aims to determine the effect of HR
quality on the compensation system and the impact of providing an employee
compensation system on PT Primissima in Sleman Regency.
RESEARCH METHOD
The type of approach used is a qualitative type of approach, namely by providing
a clear and precise picture of the object of writing. Qualitative research is research used
to examine the condition of natural objects, where the researcher is a key instrument
(Sugiyono, 2016). The reason for using qualitative research is because it can easily help
researchers to dig deeper information related to a research topic which later the
information obtained can be used to determine research objectives. This writing gives
the influence of the quality of human resources on the compensation system and
employee performance at PT Primissima in Sleman Regency.
This research is a fieldr esearch by taking place in the personnel department at PT
Primissima Sleman Regency. This study was conducted from February 17, 2022 to May
17, 2022. Data analysis techniques are analytical activities carried out qualitatively in
an interactive and continuous way to the end, so that the data becomes saturated
(Sugiyono, 2016).
RESULT AND DISCUSSION
The results of this study were sourced from observations that had been made,
conducting interviews, and documentation carried out previously at the time of the study.
This discussion was carried out based on data obtained from the research location with
interviews with informants needed in the discussion of this research and also discussions
were carried out on the problems studied. In this chapter, we will describe the answers to
problems and the results of discussions, explaining a number of things and components
about the research at PT Primissima in Sleman Regency in the period from February 17,
2022 to May 17, 2022. Related to the employee compensation system for improving
employee performance at PT Primissima in Sleman Regency.
At this stage of the analysis, researchers compile interview items, collect data and
then conduct their own analysis. The interviews were conducted in stages with a time
period of 17/2/2022 - 17/5/2022. The results of the study were obtained using informant
interview techniques extensively for information search and observation at the location
which was then analyzed.
To get maximal, more objective and accurate research results, researchers
interview additional informants to obtain more detailed information from reliable
sources, and researchers also interview supporting informants who are still related to
the research focus to obtain more information.
After that, conduct an analysis using the observation stage to deepen the material,
the observation steps are:
1. Visited and entered PT Primissima in Sleman Regency as a research student for 5
months.
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2. Visit and enter the part of the personnel division of PT Primissima.
3. Observe and participate in employee coaching at PT Primissima.
4. Observing the series of batik fabric manufacturing process at PT Primissima.
Furthermore, the data obtained are tested to determine the validity or absence of a
finding obtained by researchers from the field. In this validity test, researchers use data
validity tests by using triangulation as data checking through various sources.
In the interview, researchers carried out observations to find out the actual
conditions at the research site, after which the results of these observations were
documented. The observation was conducted at PT Primissima Sleman Regency. The
informant of this research is the head of HRD personnel of PT Primissima. Extensive
interviews were conducted with the aim of sharpening and solidifying the information
obtained from the research site. Informants are obtained through purposive sampling to
obtain informant criteria that are in accordance with the research objectives.
The selection of informants was based on the fact that a head of HRD personnel
knew and understood correctly the compensation system given to employees at PT
Primissima Kabupaten Sleman. The initials of this research informant are FY who has
the age of 53 years with the last education is S2, the interview time is carried out
according to the schedule given by the informant with a random time, and then the
interview place is carried out at the home and office of PT Primissima Sleman Regency.
Here are some results of interviews with research informants that can be
summarized into two parts, namely as follows:
The existence of employee indiscipline in entering work makes the company have
provisions in the regulations for providing salaries to employees working at PT
Primissima. This is as stated by FY in a research interview who said:
"There are provisions in company regulations that are almost the same as overtime
or if it is almost the same as rewards when we have excess hours. If the excess hours are
one per 173 times the wage meets the hourly wage of the excess hours, well for the
deduction from the delay it is also like that. One per 173 of the wages is found nominal
hours, well it's just a matter of how many minutes later he will be late so convert it like
that. So maybe in a month after three times three times this is found later The total is half
an hour, just multiply by the multiplication earlier. This is for the basis of deducting
wages. On the other hand, influencing the condition or performance appraisal also affects
the later promotion of his class and rank, so mas"
Based on the above, the end of employee discipline in entering work is to have an
impact on the amount of compensation they receive. In relation to this compensation, it
is known that PT Primissima in Sleman Regency provides compensation in two forms,
namely financial compensation in the form of salaries or wages and non-conventional
compensation in the form of other than salaries such as employees are included in
trainings. This is as stated by FY in a research interview who said:
“For non-financial ones, he can also be included in the training training later, right,
the knowledge he gets for up skills is also profitable for himself too, that's one. Then in
terms of other than material or money, there may be facilities such as rest hours, worship
hours, there are other facilities, canteens are provided, the existence of cooperatives is a
form of compensation as well, besides that there are uniforms. In the past, there was
recreation”
The company in providing compensation pays attention to the quality of human
resources of its employees Anjanarko & Jahroni,(2022), this shows that the company pays
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attention to the development of the quality of human resources it has. This is done so that
HR can become an asset that is expected to be able to encourage organizational growth
and performance so that it can generate maximum profit for the company. This makes the
role of the HRD (human resource development) division at PT Primissima very
important. The company's HRD carries out various functions, one of which is quite
crucial is the compensation function. Attractive compensation will certainly be a special
attraction for workers to determine where they want to have a career. Attractive
compensation makes PT Primissima in recruiting the best human resources because it is
expected that the entry of the best human resources will have a positive impact on the
performance of these employees so as to make a positive contribution to the company's
performance.
In relation to the quality of human resources, the company in its assessment is based
on promotion and demotion This is as stated by FY in a research interview who said:
"Isn't there such a thing as promotion and the opponent is demoted, now what is the
point to be able to promote and demotion what? We talked about demotion first, yes, the
scope of which is only a few. For demotion itself, it is indeed for employees who cannot
meet their work targets. On the other hand, there may also be violations of applicable
regulations such as PKB, Collective Labor Agreement. For example, someone is caught
or caught smoking red-handed, now that automatically he immediately gets a warning as
well as emotion."
Based on the results of the interview above, the company will demotion or demotion
for employees who work cannot meet the work targets set by the company. In addition,
demotion is also carried out if employees commit violations of applicable regulations
such as PKB, Collective Labor Agreement. For example, someone caught or caught
smoking then automatically the employee will get a warning and at the same time
demotion at the same time. This demotion is given immediately without prior warning,
as conveyed by FY in a research interview who said:
“Immediately, because smoking is a hard offense. For example, if stealing is no
longer demoted, maybe it can be immediately expelled. For promotion, well this is talking
about promotion very, very vulnerable because here there is language that maybe if
someone who is not professional it will like and dislike. Or who I like I will raise it first.
Incidentally, this employment has the authority to both demotion and promotion. Now
for this promotion itself, promotion level, promotion, promotion of this group there are
several factors mas Wahyu. The first is about performance, about loyalty about integrity
about the most important thing is absenteeism. This is for level 1-2 levels. For level 3 and
above, one of the assessment criteria is innovation. How far someone innovates so that
they can occupy the levels at the 3rd level, mas Wahyu"
The above shows that in maintaining the quality of employee human resources, the
company provides strict rules and discipline to all employees to work well and obey all
existing regulations. By having good quality human resources, it is believed that
employees will have good quality work, so they will also get compensation or salaries
provided by the company in accordance with the quality of work owned by employees.
Proof of compensation for qualified employees is that the company in this case
always provides compensation both salary and non-salary for all employees who work,
even before the Covid 19 outbreak which caused the company's condition to be not good
PT Primissima in Sleman Regency also provides compensation such as tourist holidays
and also long leave for its employees. This is as stated by FY in a research interview who
said:
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“There is recreation once a year, because currently the company's condition is not
good, especially after you are fit so that the activity is temporarily stopped. Even in the
past, I was new, there was a compensation that was indeed very pleasant, namely a long
leave. every employee who has a service period of 12 years he gets a sabbatical and
Periodic will get it again within six years. The first sabbatical income after a 12-year
service period after which six years and six years can be again. The length of the
sabbatical is three months. Now when getting the sabbatical, the three months do not run
out, the rest can be cashed”.
Even the existence of long leave for employees who are not taken can be cashed
out. So employees who do not want to take their leave continue to work and the leave
compensation can be disbursed by employees in the form of money. This is as stated by
FY in a research interview who said:
"It can be cashed, how much is not taken on leave can be cashed, that's first. If the
rules are due to conditions, conditions that may have changed and labor regulations have
indeed changed, so now it has been abolished."
In addition to the basic salary, leave money and even vacation for employees, the
company PT Primissima in Sleman Regency provides bonuses beyond the basic salary.
This bonus is given when the company's production target is achieved, this income in the
company is called IPP or production achievement incentive. This is as stated by FY in a
research interview who said:
"That's the company's condition, at that time it was good again, there was even a
mas bonus. In addition to our monthly salary, there are other incomes besides salary. For
example, there is an IPP, IPP is an incentive to achieve production”
Looking at the description above, PT Primissima in Sleman Regency in terms of
compensation is very concerned about its employees, the company has a great
responsibility for the welfare of its employees. So that in providing compensation is not
limited to the amount of basic salary that will be received by employees. Companies in
addition to basic salaries include providing vacation or recreation, leave for employees,
training for employees who perform well and then the company also provides bonuses to
all employees when the company's production targets can be achieved. With the
achievement of production targets, it can illustrate that the company has good work
productivity and also the company's financial condition is also improving.
PT Primissima in Sleman Regency provides compensation to all its employees by
referring to several factors, including the number of work entries, factors of late entry to
work and also employee discipline at work. This shows that PT Primissima in Sleman
Regency provides compensation to all its employees by referring to company regulations
relating to labor, wages and obligations that must be fulfilled by the company towards its
employees.
The compensation given is determined by those affected by attendance, lateness,
discipline, non-financial compensation cashed and the company also pays attention to or
adjusts to the minimum wage of cities in Sleman Regency and Yogyakarta Special Region
Province. The nominal basic salary given by PT Primissima in Sleman Regency to
employees is determined and known by the company only. Information regarding
guidelines as a basis for determining basic salary is never given to all company employees
so that only those who know the basis or criteria used to determine the nominal basic
salary received including the nominal increase in the value of the basic salary given each
year.
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PT Primissima di Kabupaten Sleman menjalankan proses job analysis dan job
evaluation dengan melalui beberapa kepala bagian untuk karyawan, dengan memperoleh
sejumlah informasi dari tiap departemen maka pimpinan dapat langsung melakukan
penilaian pada kinerja bahkan mengenali setiap individu karyawan lalu menentukan nilai
gaji pokok yang sesuai dan kenaikan gaji pokok yang tepat untuk individu tersebut.
Law number 13 of 2003 concerning manpower article 91 paragraph 1 states that
employers arrange the structure and scale of wages by taking into account class, position,
length of service, education and competence. PT Primissima in Sleman Regency in
compiling the structure and scale of wages by classifying positions in the organizational
structure and length of service, based on education and competencies that must be met
for all positions. The compensation given is adjusted to the educational background
required for a particular position.
The compensation system run at PT Primissima in Sleman Regency has the
advantage of meeting attractive criteria in providing compensation systems, namely
meeting attractive criteria in providing compensation because it considers the value of
compensation in the labor market. The nominal determined directly by also meets the
criteria of easy administration because it does not require too complicated calculations.
Direct compensation in an agency is very important to improve employee
performance for the progress of the agency in providing direct compensation can be
realized in various forms adjusted to the accuracy that exists in an organization.
Compensation benefits for employees include rewarding employee performance,
ensuring fairness in employee salaries, retaining employees or reducing employee
turnover, in order to obtain quality employees. The benefits of direct compensation are to
assist employees in meeting needs and spurring employees to excel so that employees
work even harder so that the cooperative gets quality employees, employee performance
increases and achieves targets.
This compensation can be in the form of financial compensation in the form of:
basic payments (salaries and wages), achievement payments, incentive payments
(bonuses) and non-financial compensation such as leave that can make an employee feel
comfortable working in the organization and can show optimal performance. From the
research data, various forms of compensation received by employees at PT Primissima
in Sleman Regency were obtained. The following is an analysis of the forms of
compensation received by employees, including:
1. Salary
All employees at PT Primissima in Sleman Regency get different basic salaries
received by employees. Conversely, a new employee whose employee status is still
low, the basic salary is also low. The provision of basic salary differences that take
into account this aspect of employees creates a sense of fairness for employees.
2. Incentive
Forms of compensation given to employees in addition to salary there are also
incentives. This incentive is a form of compensation in the form of money given to
employees based on adding quality / work performance in the series of basic tasks.
The forms of compensation received in the form of incentives are:
1. Bonus
2. Commission
3. Additional overtime work
a. Other forms related to the addition of work quality / performance
In addition, employees also get indirect compensation from the company. The
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benefit of providing indirect compensation is that in order to spur employees to excel and
work even harder, it is important for cooperatives to provide compensation in accordance
with applicable provisions, feasibility and human sense, the existence of compensation is
expected to make an attraction or binding for employees to stay in the company. Because
of the view that the compensation provided by the company is high, only qualified people
are selected, this will automatically strengthen the company in managing its employees.
Thus the company will get employees who are competitive in accordance with
expectations and able to increase company productivity. Indirect compensation is the
sharing of benefits for workers beyond fixed salaries and wages. This compensation can
be in the form of money or goods.
Indirect compensation is the sharing of profits and remuneration of complementary
services or benefits provided in the form of services to employees. The benefits of indirect
compensation are to provide benefits for employees and trigger employees to work hard
because there are targets to be achieved. Indirect compensation provided by PT
Primissima company in Sleman Regency includes leave. Leave is provided for non-
working time for all employees of the company without exception.
The determination of good giving is expected to have an impact on improving
employee performance at work. Compensation is one of the factors that influence
everyone to achieve prosperity in life. People work enthusiastically to achieve a
prosperous life. Conversely, if people who are not prosperous will work with less passion.
The results of the interview above show that compensation in the form of salaries,
incentives, and bonuses is an important factor to influence the improvement of employee
performance. Because the greater the company gives to its employees, the higher the
efforts of employees to improve their performance. Employees feel the positive impact
of the implementation of the compensation system. All provisions regarding employee
rules and forms of compensation provided by employees feel comfortable and happy
because they are satisfied working as employees at PT Primissima in Sleman Regency,
this is a motivation for employees in improving their performance.
This is because the compensation given by the company to employees is an
attraction and driving tool for employees to improve performance, discipline and
responsibility so that employee achievements can achieve higher values. Compensation
is a way for companies to improve work performance, work motivation and other things
related to labor needs is compensation. According to Asmayana (2018) Compensation is
a reward for services or remuneration provided by the company to the workers, because
these workers have contributed energy and thoughts for the progress of the company to
achieve the goals that have been set. According to Kasmir (2015), The company provides
compensation with the aim of obtaining qualified employees. The purpose of
compensation is as a bond of cooperation, job satisfaction, effective procurement,
motivation, employee stability, and discipline (Kurniawan et al, 2020).
Compensation is a remuneration received by employees from the company, both
financial and non-financial (Kasmir, 2015). Compensation has a considerable influence
in improving employee performance, because one of the main goals of a person to work
is to want to earn income. Compensation is very important in fulfilling the rights of
employees to the services provided. Proper compensation will provide strong work
motivation from within employees and can improve the performance of the employees
themselves (Kasmir, 2015). This is also in line with research conducted by Kurniawan et
al (2020) which shows that compensation has a real and good impact on employee
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performance.
Based on the results of the research above, it can be stated that the effective
implementation of work will affect employee performance which will ultimately improve
company performance. Therefore, every company always makes efforts to improve the
quality of its human resources. Improving the quality of human resources is expected to
increase the effectiveness of work implementation, where work that can be done
effectively will improve employee performance. The influence of HR quality on company
performance is very large because with high quality human resources, understanding of
human resources on the production process, strategies to deal with the dynamics of the
production process and especially if there are obstacles they can easily find solutions so
that the production process becomes smooth. With smooth production, both the quality
and quantity of production can be according to the expected target so that market needs
can be met and have an impact on the company's better revenue or profit. With a profitable
company, the welfare of human resources increases, their rights are fulfilled, including
the company will provide satisfactory compensation for workers and even rewards will
be given. There are 3 important aspects in a company, namely:
a. Production machinery
b. Raw materials
c. Human Resources
These three aspects are an inseparable unity for increased productivity. One of the
three elements is HR. It is necessary to increase human resource capacity so that human
resources can compete in the current era of globalization. If human resources are good
and able to compete in this era of globalization, the sustainability of the company will be
maintained, and even production will increase in the midst of global competition. When
the income results from the company increase, compensation that is the right of workers,
both normative and reward or bonus, will be given by the company as a form of
appreciation for good HR performance. Good performance will certainly have a good
impact on the company's production. So that the income from the company will increase
and get more profits. Therefore, the company is committed to continuing to provide good
compensation to increase the enthusiasm of human resources.
Furthermore, employees who get appropriate compensation will work with high
enthusiasm and motivation at work, for that the importance of the company fostering
employee morale which can be done by improving compensation to employees. Because
the better the compensation received by employees, the higher the morale of employees
so that with the emergence of employee morale can make a company meet the targets that
have been set and employee productivity will increase. Providing adequate, fair, balanced
compensation between the work done with the pay received by employees and can be
received by employees, the assessment of this compensation system is good and with this
can provide encouragement to employees so that enthusiasm at work will have an impact,
namely increased employee performance, persistence, cooperation and discipline at work.
The greater the compensation given by the company to its employees, the higher the
efforts of employees to improve their performance.
Compensation for PT Primissima employees provides good feedback for
production. With compensation that can improve the welfare of workers, workers in
general will try to increase production. This is because workers want to get sustainable
results to meet their needs. The better the compensation, the more productivity will
increase.
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CONCLUSION
The quality of human resources is very influential on the production and income of
PT Primissima. If the quality of human resources is good, production increases and
income increases. Vice versa, if the quality of human resources is poor, production
decreases and income decreases. If the production target has been achieved as expected,
the company will experience profits, so the company will provide satisfactory
compensation for workers and rewards will be given. The compensation provided by PT
Primissima in Sleman Regency is in the form of financial compensation in the form of
basic payments (salaries and wages), achievement payments, incentive payments
(bonuses) and non-financial compensation such as leave that can make an employee feel
comfortable working so that he has good performance. The compensation provided by
PT Primissima in Sleman Regency has an impact on improving employee performance at
work, with compensation making employees more passionate and enthusiastic at work so
that their performance increases.
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Mulyadi, Tri Widyastuti, Zulkifli (2023)
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