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All Journal Kompartemen : Jurnal Ilmiah Akuntansi
R. Augia Putrie
Universitas Buana Perjuangan Karawang
Economics, Econometrics & Finance

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Compensation! Is It the Key to Improving Employee Performance and Commitment in the VUCA Era? Muhammad Adhimawan Wijaya; Dewi Hudiyah; R. Augia Putrie; A. Falahhuddin
Kompartemen : Jurnal Ilmiah Akuntansi Vol. 23 No. 1 (2025): KOMPARTEMEN, Vol 23 No 1, Maret 2025
Publisher : Universitas Muhammadiyah Purwokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30595/kompartemen.v23i1.24968

Abstract

The era of volatility, uncertainty, complexity, and ambiguity (VUCA) and the post-COVID-19 pandemic impact have posed significant challenges for organizations in managing human resources. This research aims to explore how compensation systems, employee well-being, organizational commitment, and individual performance in the manufacturing sector in West Java are affected by a quantitative study using a cross-sectional survey design with 303 respondents out of 500 manufacturing industry employees. Data collection was conducted through questionnaires using a Likert scale and analyzed using Structural Equation Modeling (SEM). The unique finding of this study is that the direct impact of compensation on individual performance is relatively small, but the mediating effect through employee well-being becomes more significant. This research provides empirical contributions that compensation is not merely a mechanism of financial transactions, but a strategic instrument in building a sustainable work ecosystem, in line with the SDGs goals. The main conclusion underscores the importance for organizations to integrate fair compensation strategies with efforts to enhance employee well-being and commitment for sustainable competitiveness.
Co-Authors A. Falahhuddin Dewi Hudiyah Muhammad Adhimawan Wijaya