International Journal of Management, Economic and Accounting
Vol. 3 No. 1 (2025): February 2025

The Effect Of Incentive Giving On Employee Performance Through Human Resource Development In Public Works And Spatial Planning Service Asahan Regency

Ilham Bahruddin (Unknown)
Muhammad Isa Indrawan (Unknown)



Article Info

Publish Date
08 Feb 2025

Abstract

Proper incentive provision and optimal human resource development are important factors in improving employee performance in government organizations. This study aims to determine and analyze the effect of incentive provision on employee performance mediated by human resource development at the Public Works and Spatial Planning Office of Asahan Regency. This study uses a causal associative quantitative approach. The sample used was the entire employee population of 145 people, with a saturated sampling technique. Data analysis was carried out using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results showed that incentive provision had a positive and significant effect on employee performance, with a T-statistic value of 20.605> 1.96 and a P-value of 0.000 <0.05, indicating that increasing incentives can improve employee performance. In addition, incentive provision had a positive and significant effect on HR development, with a T-statistic value of 55.921> 1.96 and a P-value of 0.000 <0.05, indicating that incentives encourage employee involvement in skill development. Human resource development also has a positive and significant effect on employee performance, with a T-statistic value of 8.826 > 1.96 and a P-value of 0.000 < 0.05, indicating that increasing human resource development can improve employee performance. In addition, human resource development is able to mediate the effect between incentive provision on employee performance, indicated by a T-statistic value of 8.385 > 1.96 and a P-value of 0.000 < 0.05. These results provide insight that incentive provision and human resource development are effective strategies in improving employee performance at the Public Works and Spatial Planning Office of Asahan Regency

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Journal Info

Abbrev

IJMEA

Publisher

Subject

Economics, Econometrics & Finance

Description

The International Journal of Management, Economic and Accounting is an academic journal published bimonthly. This journal features the latest research in the fields of management, economics, and accounting, covering topics such as strategic management, micro and macroeconomics, corporate finance, ...