Islamic Rural Bank Employee Performance: Role of Motivation, Compensation, and Work Environment

Authors

  • Hizbul Khootimah Az-zaakiyyah UIN Sunan Kalijaga Yogyakarta
  • Farid Hidayat UIN Sunan Kalijaga Yogyakarta
  • Abu Muna Almaududi Ausat Universitas Subang
  • Suherlan Suherlan Universitas Subang

DOI:

https://doi.org/10.14421/EkBis.2022.6.1.1551

Keywords:

Motivation, Compensation, Work environment, employee performance, SEM-PLS

Abstract

Rural banks in Indonesia have been experiencing a significant growth. Each company has diverse workforce. Excellent employees will contribute significantly to achieve the company's goals. However, some companies disregard any factors that can lead to optimal employee performance. The purpose of this study was to determine the effect of motivation, compensation, and work environment on the employee performance. This was a case study conducted at PT. BPRS Madina Mandiri Sejahtera Yogyakarta. A quantitative technique based on variance Structural Equation Modeling (SEM) and Partial Least Square (PLS) was used to acquire a better understanding of the relationship between variables. Questionnaires were used to collect 28 responses from the company’s employees. The finding revealed that compensation was a deterrent for companies that have not received awards in the previous five years. As a result, the company’s management must pay more attention to work compensation related to more efficient and effective use of human resources. The higher the employees’ salary, the more achievements achieved by the employees. The higher the number of high-performing employees, the lower the cost of non-essential work.

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Author Biographies

Hizbul Khootimah Az-zaakiyyah, UIN Sunan Kalijaga Yogyakarta

Mahasiswa Program Studi Perbankan Syari'ah

Farid Hidayat, UIN Sunan Kalijaga Yogyakarta

Dosen Fakultas Ekonomi dan Bisnis Islam

Abu Muna Almaududi Ausat, Universitas Subang

Dosen Fakultas Ilmu Administrasi Universitas Subang

Suherlan Suherlan, Universitas Subang

Dosen Fakultas Ilmu Administrasi Universitas Subang
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Published

2022-06-30

How to Cite

Az-zaakiyyah, H. K., Hidayat, F., Almaududi Ausat, A. M., & Suherlan, S. (2022). Islamic Rural Bank Employee Performance: Role of Motivation, Compensation, and Work Environment. EkBis: Jurnal Ekonomi Dan Bisnis, 6(1), 44–58. https://doi.org/10.14421/EkBis.2022.6.1.1551