The Impact of Competence and Motivation on Employees Performance of Tower Infrastructure Company in Indonesia

Abstract

This research aims to determine the influence of competence and work motivation on employee performance at one of the largest Telecommunication Tower Infrastructure Companies in Indonesia. This research uses Structural Equation Modeling (SEM) methodology with Partial Least Squares (PLS) technique using SmartPLS version 3.2.9 software with 204 permanent employees of the company as respondents. The survey results show that employee performance is included in the “very good” category with an average score of 87.37%. This is in line with employee competence and employee work motivation, which are classified as “very high” with scores of 85.85% and 89.90%, respectively. The hypothesis results show that competence and motivation have a significant effect on employee performance, with an influence of competence of 0.321 and motivation of 0.587. This highlights the importance of good competence enhancement strategies and effective motivation and suggests that companies must improve both aspects to improve employee performance. This study also provides insights to company leaders that are important in responding to the dynamics that occur in managing employee performance at Telecommunication Tower Infrastructure Companies.