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All Journal Jurnal Minds: Manajemen Ide dan Inspirasi
Rohayati, Teti
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

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How Regional Human Resource Capabilities and Compensation Governance Shape Labor Productivity across Indonesian Provinces Rohayati, Teti; Subagio, Subagio; Arrianie, Lely
Jurnal Minds: Manajemen Ide dan Inspirasi Vol 13 No 1 (2026): June
Publisher : Management Department, Universitas Islam Negeri Alauddin Makassar, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24252/minds.v13i1.63710

Abstract

Regional disparities in labor productivity across Indonesia reflect differences in how provincial systems build, mobilize, reward, and retain workforce capacity. This study examines labor productivity as an outcome of regional human resource architecture shaped by two managerial levers: capability formation and compensation design. Using publicly available 2024 data from Badan Pusat Statistik and the Ministry of Manpower for 38 Indonesian provinces, the study uses the Human Development Index as a proxy for workforce capability and the Provincial Minimum Wage as a proxy for compensation governance. Two ordinary least squares models, linear and log-linear, estimate their association with labor productivity. The indicators jointly explain 55.2% of cross-provincial variation, with both effects significant at p < 0.001. Robustness checks confirm that the findings are not driven by extreme cases. The study contributes a managerial typology of provincial productivity systems: dual deficit, untapped potential, compensation without depth, and integrated systems.
Co-Authors Arrianie, Lely M. Imam Sundarta Rachmatullaily Tinakartika Rinda Subagio Subagio, Subagio Subakti, Djani