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

Hizbul Khootimah Az-zaakiyyah (), Farid Hidayat, Abu Muna Almaududi Ausat and Suherlan Suherlan
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Hizbul Khootimah Az-zaakiyyah: Universitas Islam Negeri Sunan Kalijaga Yogyakarta
Farid Hidayat: Universitas Islam Negeri Sunan Kalijaga Yogyakarta
Abu Muna Almaududi Ausat: Universitas Subang Jawa Barat
Suherlan Suherlan: Universitas Subang Jawa Barat

EkBis: Jurnal Ekonomi dan Bisnis, 2022, vol. 6, issue 1, 44-58

Abstract: Rural banksin Indonesia have beenexperiencing a significant growth. Each company has diverse workforce. Excellent employees will contribute significantly toachievethe company's goals. However,some companies disregard any factors that can lead to optimal employee performance.The purpose of this study wasto determine the effect of motivation, compensation, and work environment on the employee performance. This wasa case study conducted at PT. BPRS MadinaMandiriSejahtera 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 collect28responses from the company’semployees. The findingrevealed that compensation wasa 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 higherthe number ofhigh-performingemployees,the lower the cost of non-essential work.

Keywords: Motivation; Compensation; Work environment; employee performance; SEM-PLS (search for similar items in EconPapers)
JEL-codes: J33 J53 (search for similar items in EconPapers)
Date: 2022
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