Compensation and working conditions at PT. Cahaya Unggul Prima with a fixed-term employment agreement and its impact on employee performance

Abstract

This study aims to ascertain the potential impact of salary and work facilities on employees' performance indicators. The study employs a quantitative correlation approach as the most suitable methodology to ensure precise outcomes. A research investigation was carried out in PT. Cahaya Unggul Prima, located in Sintang Regency, involves 30 employees from the PKWT. The researchers will employ the non-probability purposive sampling technique to collect samples in this study. The data collection was conducted by administering a questionnaire to all employees. The data processing methodology involves utilizing classical assumption testing, reliability testing, validity testing, multiple linear regression analysis, and calculating the coefficient of determination. According to the results of the T-test, it can be concluded that the variable X1 (compensation) does not have a significant impact on employee performance, as indicated by a p-value of 0.216, which is greater than the predetermined significance level of 0.05 (t count = 1.267 t table = 2.052). In contrast, the performance of employees is found to be influenced by work facilities, as indicated by a statistically significant value of 0.015 (p < 0.05) and a computed t-value of 2.606, which exceeds the critical t-value of 2.052. Subsequently, the combined impact of compensation and work facilities on employee performance was examined using the F test, yielding a statistically significant result of 0.000 < 0.05. The computed f value of 10.926 exceeds the critical t value of 3.35