The Influence of Compensation and Work Discipline on Employee Performance at PT Sygma Exa Grafika

Abstract

In today's fiercely competitive business environment, a company's success in the competition is closely tied to its human resources. Companies must enhance the quality of their human resources to emerge victorious in this competition. Effective management and development of human resources within an organization are essential to improve the performance of individuals, enabling them to contribute to the company's goals. Numerous factors influence human resource performance, either enhancing or hindering it. Compensation and work discipline are two factors that can significantly impact human resource performance. This study aims to understand the implementation of compensation and work discipline at PT Sygma Exa Grafika, as well as the performance of human resources in the company. The research also seeks to determine the extent of the influence of compensation and work discipline on human resource performance at PT Sygma Exa Grafika, both simultaneously and individually. Data for the study were collected using a questionnaire distributed to 100 individuals, employing a saturation technique covering the entire population. The data analysis utilized Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results reveal that employee compensation at PT Sygma Exa Grafika is rated at an average of 375.6 or 75%, falling into the "good" category. Work discipline at the company averages 314.8 or 74%, also categorized as "good." Hypothesis testing indicates that compensation has a moderate impact of 0.225 on employee performance, while work discipline has a significant impact of 0.470. In summary, both compensation and work discipline, individually and collectively, have a positive and significant influence on human resource performance. This research provides insights into the conditions at PT Sygma Exa Grafika, offering a basis for improvement and system development within the company.