Analysis of Performance Management and Compensation in Improving Employee Productivity at PT Si Cepat Ekspress Indonesia Panggungharjo Sewon Bantul Branch

Abstract

This study aims to analyze the relationship between performance management and compensation in increasing employee productivity at PT Si Cepat Ekspres Indonesia Panggungharjo Sewon Bantul Branch. Good performance management and a fair compensation system play an important role in increasing employee motivation and productivity. This study uses a quantitative approach with the Full Sampling method, where all 31 employees of this branch are sampled. The data was collected through surveys that measured employees' perceptions of performance management, compensation, and work productivity. The results showed that performance management had a significant positive influence on employee productivity (r = 0.712), while compensation also had a significant effect with a correlation coefficient of 0.658. Multiple linear regression analysis shows that performance management and compensation can explain 62% of the variability in employee productivity. These findings confirm that effective management of performance management and appropriate compensation can improve employee performance and productivity, which in turn supports the achievement of company goals. Therefore, PT Si Cepat Ekspres Indonesia is advised to strengthen performance management policies and compensation management to increase overall employee productivity.