THE INFLUENCE OF SALARY AND INCENTIVE TOWARD EMPLOYEE PRODUCTIVITY AT PT BANK RAKYAT INDONESIA (PERSERO) TBK MANADO BRANCH

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1 THE INFLUENCE OF SALARY AND INCENTIVE TOWARD EMPLOYEE PRODUCTIVITY AT PT BANK RAKYAT INDONESIA (PERSERO) TBK MANADO BRANCH Andre Horman, Franki M. Paath, Loureine P. Sumual ABSTRAK Kondisi ekonomi di Indonesia dapat dipengaruhi oleh pertumbuhan perbankan yang sangat pesat. Produktivitas karyawan penting bagi PT Bank Rakyat Indonesia (Persero) Tbk untuk bersaing dengan bank lain. Tujuan dari penelitian ini untuk mengetahui seberapa besar pengaruh gaji dan insentif terhadap produktivitas karyawan di PT Bank Rakyat Indonesia (Persero) Tbk Cabang Manado. Metode analisis yang digunakan adalah Regresi Linier Berganda, dan uji hipotesis menggunakan Simultaneous Test (F-test) dan Partial Test (T-test). Hasil dari analisis Regresi Linier Berganda adalah gaji dan insentif berpengaruh positif terhadap produktivitas karyawan. Gaji dan insentif berpengaruh sebesar 0,462 atau 46.2% terhadap produktivitas karyawan. Hasil dari F-test yaitu gaji dan insentif secara bersama-sama (simultan) berpengaruh terhadap produktivitas karyawan di PT Bank Rakyat Indonesia (Persero) Tbk Cabang Manado. Dan hasil dari T-Test yaitu gaji berpengaruh secara signifikan terhadap produktivitas karyawan di PT Bank Rakyat Indonesia (Persero) Tbk Cabang Manado. Jadi, gaji harus lebih di prioritaskan dari insentif, karena gaji berpengaruh secara signifikan terhadap produktivitas karyawan. Kata kunci: Gaji, Insentif, dan Produktivitas Karyawan INTRODUCTION Human Resource give the contribution in the form of energy, mind, experience, and membership ( Ardana, 2008). PT. Bank Rakyat Indonesia (Persero) Tbk have Human Resource (HR) Department. Based on data from Human Resources Department at BRI Manado Branch, total employees in BRI Manado Branch up to May 2013 is 542 employees. Based on interview data from Human Resources Department at BRI Manado Branch, productivity of work to the last year in 2012 is increasing from the last year in Productivity is efficiency from used resources to get output (Simamora,2000:126). Salary and incentive play important role in improving productivity of work. Salary is defined as the total number of services provided to replace workers ( Harsono,1998:28). Incentive is any system compensation, in which the amount relates to depend on the results achieved, which means it offers an incentive to employees to achieve better results (Harsono,1998:36). Salary and incentives are some of the factors determinant of the success or failure of an organization in achieving its objectives. Because when the salary and incentive are applied in the organization of the company is not in accordance with situation and condition the organization's internal, such as skill level and maturity of its employees it will affect the behavior of employees in carrying out tasks that bad that productivity will decrease. Because the salary and incentive are applied with skill and maturity level of the employees is not relevant so that the effectiveness of salary and incentive are applied not meet the expectations. Awarding salary and incentive are effective ways the company could provide a boost to the employees in order to achieve the desired level of productivity. Based on data obtained from interviews with HR staff BRI, BRI's employees earned salaries every month, while the provision of incentives for all employees BRI conducted every once in a year. Employees absent from work without explanation or late will get salary deduction, while the employees are obey by the rules will receive a salary without deductions. This ways conducted so that BRI employees can follow the service

2 standard established by BRI. Incentives will only be awarded to employees who meet productivity of its work. Employees does not achieve the target in a year will not accept the incentive. The provision of incentives to encourage employees to be more active in working. The proof of the interview located at the appendix. Based on the above, the authors were interested in discussing the influence of salary and incentive toward employee productivities in BRI. Therefore, the authors take the title: The Influence of Salary and Incentive toward Employees Productivity at PT. Bank Rakyat Indonesia (Persero) Tbk Manado Branch. THEORETICAL FRAMEWORK Human Resource give the contribution in the form of energy, mind, experience, and membership (Ardana, 2008). Human Resources Management encompasses those activities designed to provide for and coordinate the human resources of an organization. Human Resource Management is a modern term for what has traditionally been referred to as personnel administration or personnel management (Byars and Rue,2000:3). Bank is the financial institution that focuses their business to collect funds and allocates the funds to society and other payment services and for money circulation (Kuncoro and Suhadjono,2002:68). In Indonesia Law, the government has also declared some definition about Bank it is stated in the Indonesian Republic Law No 10 in 1998 Bank is the company that collects money from society that called savings and distribute it in credit or other form to increase many human life index. Salary is defined as the total number of services provided to replace workers (Harsono,1998:28). It must be admitted that the salary are a very complex thing that really needs to be considered by every company. Payment of salaries amount usually determined on a monthly. Salary is consider higher than the payments to the workers wage, despite the fact that is often not the case. An employee be notified how to do his job, is under the command and must follow the instructions for employers on the implementation of the job. On the job, employees are rewarded called salary. Salary function not only help personnel managers in determining a fair and decent salary, but there are still other functions, namely (Harsono,1998:32) : To efficiently allocate labor resources. To use resources efficiently human labor. Encourage economic stabilization and growth. The salary structure which well tend to attract qualified employees. Employees may be dissatisfied if the wages provided by companies considered too low or not in accordance with the work that has been completed. Otherwise if the salary is given in accordance with the standard of work then it might encourage employee productivity. Several important factors in determining a fair salary, namely (Harsono,1998:37): 1. Education Salary shall be proportionate to the level of education of employees, for example, the salary of a scholar should be distinguished from non-scholars. 2. Experience Salary given to people who already have work experience must be distinguished from those who are inexperienced. 3. Amenability Salary is considered fair if the salary for dependents who have large families are distinguished by having a small family dependents. 4. The ability of companies the ability of companies to pay its employees should also be calculated. If the company should benefit employees can also come to enjoy through increased salary, wellbeing, and others. 5. Labor conditions Field work that requires precision and expertise specific to the salary level should be distinguished workers who do the work plain and simple.

3 Incentive is any system compensation, in which the amount relates to depend on the results achieved, which means it offers an incentive to employees to achieve better results (Harsono,2002:59). Incentive are to provide different salary because they are different performance (Ranupandojo,2000:63). Implementation of the company's incentive system is intended to increase the productivity of achieving employees to remain in the company. Incentive purpose are to raises the working spirit, while working spirit are an atmosphere at all times be found in every corner of the organization which can be established in the class of employees who worked together (Harsono,2002:61). Productivity is efficiency from used resources to get output (Simamora,2000:126). Further it can be said productivity is related to the ratio of the output or the output of one or more of the output. And more specifically, productivity is the volume of goods or services that are actually used to physically anyway. To determine the level of productivity is needed method of measurement. There are three ways of measurement, namely : (Dharma,2000:36) 1. Quantity, that is the amount that would have resulted. 2. Quality, that is quality of the resulting. 3. Timeliness suitability of the specified time. Relationship Salary Variable Toward Employee Productivity Salary function not only help personnel managers in determining a fair and decent salary, but there are still other functions, namely (Harsono,1998:32) : To efficiently allocate labor resources. To use resources efficiently human labor. Encourage economic stabilization and growth. Salary is income to fulfill the needs of the family, although the salary is not the only one in achievement motivation. However it can be said that salary is one of the important motivation that urges employees to achievement. So high-low salaries the given will affect the productivity and employee loyalty to the company. Relationship Incentive Variable Toward Employee Productivity One of the various important factors that influence high - low level of incentive (Ranupandojo,2000:71) there are productivity. So, can be concluded there are relationship between incentive and employee productivity. Hypothesis is the answer of the research problem, which is rationally deducted from the theory (Supomo, 2002:191). Based on the theory above, the hypothesis that can be draw of this research are: The salary has influence the employee productivity. The incentive has influence the employee productivity. The salary and incentive has influence the employee productivity. RESEARCH METHOD This research is carried out to find out the relationship among namely salary, incentive, and productivity. Type of this research for test the influence of salary and incentive toward employee productivity in PT. Bank Rakyat Indonesia (Persero) Tbk Manado Branch. Furthermore this research will explain about phenomenon in type of relations between variables or also call explanatory research. Interviews are used as a technique of collecting data which researchers will use as a preliminary study to find problems to be investigated, and if researchers want to know more about the respondents (Sugiyono, 2008:194). Interview has done with the human resources officer Mr. Ronald Tatinggulu in BRI Manado branch to know the total of BRI employees in BRI Manado Branch. A proof has been doing interview is a statement explaining that has been conducted interview listed in the appendix. The researcher distributes the questionnaire to the employees of BRI Manado in order to get the data based on their opinion. The question that related to the variable that being analyzed. The observation was done in company s workplace. From observation, the researcher can know about the power of salary and incentive of BRI Manado toward productivity of work in general. The population of this research is the employees of PT. Bank Rakyat Indonesia Manado Branch.

4 The researcher use sample because the employees of BRI Branch Manado not always in office. Table 1. Variable and Indicators Salary Incentive Variable Indicators Education, experience, amenability, ability of companies, labor condition. Demand and supply of labor, labor organization, productivity, living costs, government Data quality testing is important in drawing a conclusion. Data quality test would determine that a conclusion is reliable and accurate. In line with that, these are the two concepts to be used for data quality testing in this research: validity and reliability. (Supomo,2002:180) Data were analyzed using Normality Test and Multiple Linear Regression, the data that can be described as test the influence of two or more variables independent toward dependent variable by using the interval scale or ratio. And then for the hypothesis test, in multiple analysis can be measure in partial or T-test and F-test to measure the significant influence in gathering toward the dependent variable, in gathering show by multi correlation coefficients (R) coefficient of multiple determination (R 2 ). The test for analysis data the researcher is measured by using SPSS 14.0 evaluation version. RESULT AND DISCUSSION Validity test is measure accuracy a item form scale or questionnaire. Obtained the following results: Table 2. Validity Test Result Item-Total Statistics Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Scale Mean if Item Deleted VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR

5 VAR VAR Source: Data Process From the result it can be seen that all statement (r count) in the questionnaire are valid, because the value of all statement are more than the value of r-table is ( r-table from sig with 2-tailed and number of data (N) on 84). This research used Cronbach Reliability Test because the score in this research has scale which range from 1-5 point. The reliability test is measured by using SPSS 14.0 evaluation version. Following is the result interpretation, if the coefficient alpha > 0.6 the data is reliable. From data obtained the following results: Table 3. Reliability Test Reliability Statistics Source: Data Process Cronbach's N of Alpha Items From the results obtained above, see the value of Cronbach's alpha if > 0,6 then the called reliable. For variable salary, incentive, and employees productivity overall to get the value 0,934 > 0.6, then three gauges is said reliable. It means if measure again and again tool for measures still consistent or reliable. Normality test is often done in a way that determines whether a distribution model of normal or not. Ways in which using the one sample Kolmogrov-Smirnov method, which saw the Unstandardized Residuals on Asymp. Sig. (2-tailed) when > 0,05 then the value of the residual normally destribution. Here are the results of normality test using the one sample Kolmogrov-Smirnov: Table 3. Normality Test Results One-Sample Kolmogorov-Smirnov Test VAR N 84 Normal Mean Parameters(a,b) Most Extreme Differences Std. Deviation Absolute.109 Positive.082 Negative Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed).269 a Test distribution is Normal. b Calculated from data. From table Unstandardized Residual value of the Asymp. Sig. (2 -tailed) is 0,269, where 0,269 > 0,05. So it can be concluded regression model normal distribution. From the results of multiple linear regressions, then the regression equation can be made:

6 Y = X X2 Regression equations have the following meanings: Constant is It means if the value of salary and incentive the number 0, then the employee productivity value is Regression coefficient salary is It means if salary have increasing 1% so it can influence the employee productivity with have increasing point. Regression coefficient incentive is It means if incentive have increasing 1% so it can influence the employee productivity with have increasing point. Simultaneous Test (F-Test) Analysis F test is basically used to test independent variables together or simultaneously have influence toward dependent variable. F test results between the salary and incentive toward employee productivity can be seen the results in the following table: Table 4. F-Test Result ANOVA(b) Model Sum of Squares Df Mean Square F Sig. 1 Regression (a) Residual Total a Predictors: (Constant), Incentive, Salary b Dependent Variable: Productivity Source: Data Process From the above results obtained for f-count is These results are compared with the f-table, where the f-table is The F-table can see in Appendix. So it can be concluded f-count > f-table. H0 is rejected and H1 is accepted. It means salary and incentive together or simultaneously have influence employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. Partial Test (T-Test) Analysis T-Test analysis to see have or not influence of salary variable (X1) and incentive variable (X2) toward employee productivity (Y) used t-test. The value is taken from t-table, using the value of a = 5% : 2 = 2,5% and df 2(n-k-1) or =81. With 2-tailed test (sig.0,025) the result of T table is For T-table can see in appendix. The result can see in table 4.5 Table 5. Result T-Test Model t Sig. 1 (Constant) Salary Incentive Can be seen t column on the item Salary that is Compared with the t-table value 1.990, the results t-count > t-table. It means salary have significant influence toward employee productivity. It means H0 is rejected and H1 is accepted. 2. Can be seen t column on the item Incentive that is Compared with the t-table value 1.990, the results t-count < t-table. It means incentive not significant influence towards the employee productivity, or in other words incentive has less influence on employee productivity. It means H0 accepted and H1 rejected. After seeing analysis above, the result is the salary give significant influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. But, the incentive has not significant influence toward employee productivity at PT Bank

7 Rakyat Indonesia (Persero) Tbk Manado Branch. It means we must give priority to salary compare incentive because the salary can more increase employee productivity. Multiple Correlation Coefficient (R) To measure the strength of the relationship between independent variable and dependent variable in the same time. Table 6. Result Multiple Correlation Coefficient and Determinant Coefficient Model Summary Adjusted Std. Error of Model R R Square R Square the Estimate 1.679(a) a Predictors: (Constant), Incentive, Salary Source: Data Process Based on the table, R value is 0,679. That means salary and incentive have a relationship 67,9% on employee productivity is high correlation between variables. It means salary and incentive have high relation between employee productivity at PT Bank Rakyat Indonesia Manado Branch. Determination Coefficient (R 2 ) The determination coefficient aims to see the how much influence independent variable toward dependent variable. The results of determination coefficient between salary and incentive toward employee productivity can be seen table 4.5. The R Square value is 0,462. Thus salary and incentive variables have an influence toward employee productivity is 46,2%, while the remaining 53,8% is influenced by other variables that not input in this research. Interpretation of Analysis Based on the result of this analysis and calculation data using SPSS 14, it is realized that 2 independent variables which is Salary (X1) and Incentive (X2) influence Employee Productivity (Y). To find out about the influence between salary and incentive toward employee productivity, writers decides to use multiple regression method. Consider there are two variables, so it is appropriate to use multiple regression method. Since the data analysis result is : Y = X X2 Multiple linear regression equation indicates that the variable salary and incentive have a positive influence on employee productivity. Where increase of 1% for the salary there will be additions to the employee productivity totaled 0,370 (If the incentive variable fixed). And if there is an increase of 1% for the incentive there will be additions to the employee productivity totaled 0,223 (If the salary variable fixed). Other partially or individual influence, have simultaneously or together is f-test. F- test value is compare with F-table F-count > f-table, so be concluded salary and incentive together or simultaneously have positive influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. T-Test analysis to see have or not influence of salary variable (X1) and incentive variable (X2) toward employee productivity (Y) used t-test. The value is taken from t-table, using the value of a = 5% : 2 = 2,5% and df 2(n-k-1) or =82. With 2-tailed test (sig.0,025) the result of T table is Can be seen t column on the item salary that is Compared with the t-table value 1.990, the results t-count > t-table. It means salary have significant influence toward employee productivity. T column on the item incentive that is Compared with the t- table value 1.990, the results t-count < t-table. It means incentive not significant influence

8 towards the employee productivity, or in other words incentive has less influence on employee productivity. After seeing analysis above, we can see that salary give significant influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. But, the incentive has not significant influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. To measure the strength of the relationship between independent variable and dependent variable in the same time used multiple correlation coefficient (R). R value is That means salary and incentive have a relationship 67,9% on employee productivity is high correlation between variables. It means salary and incentive have high relation between employee productivity at PT Bank Rakyat Indonesia Manado Branch. The determination coefficient aims to see the how much influence independent variable toward dependent variable. The R Square value is 0,462. Thus salary and incentive variables have an influence toward employee productivity is 46,2%, while the remaining 53,8% is influenced by other variables that not input in this research. So, can be concluded influence other factor more compare with salary and incentive toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. CONCLUSION AND RECOMMENDATION The result of data calculation and data analysis, shows that the salary and incentive can affect and have a relations with the employee productivity at PT. Bank Rakyat Indonesia (Persero) Tbk Manado Branch. The result of this analysis is obtained through a multiple linear regression analysis. The result of multiple linear regression is the salary and incentive have positive influence toward employee productivity. Where increase of 1% for the salary there will be additions to the employee productivity totaled 0,370 (If the incentive variable fixed). And if there is an increase of 1% for the incentive there will be additions to the employee productivity totaled 0,223 (If the salary variable fixed). The result of Multiple Correlation Coefficient (R) is high correlation be tween variables. It means salary and incentive have high relation between employee productivity at PT Bank Rakyat Indonesia Manado Branch. The result of coefficient determination (R 2 ) is salary and incentive have influence 46,2% toward employee productivity. The result of F test is the salary and incentives together or simultaneously have influence employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. Because f-count > f-table. Result of T-Test is salary hav9e significant influence toward employee productivity. And incentive not significant influence towards the employee productivity, or in other words incentive has less influence on employee productivity. So, we can see that salary give significant influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. But, the incentive has not significant influence toward employee productivity at PT Bank Rakyat Indonesia (Persero) Tbk Manado Branch. So, salary must be the priority, because the salary has significant influence. Recommendation The result of Multiple Correlation Coefficient (R) is high correlation between variables. It means salary and incentive have high relation between employee productivity at PT Bank Rakyat Indonesia Manado Branch. The researcher advices to company for giving attention to salary and incentive because it have high relation between productivity of employees. Based on T-test result the company must be more attention to salary of employee because the result of T-test show the salary has significant influence toward employee productivity. The researcher advices to company for give priority the salary to increase the employee productivity.

9 The result of R 2 is or 46.2%. It means salary and incentive have influence 46.2% toward employee productivity at PT. Bank Rakyat Indonesia (Persero) Tbk Manado Branch. The recommendation to next researcher for using other variables because salary and incentive variable just 46.2% influencing the employee productivity. Used other variable for increasing the influence. BIBLIOGRAPHY Ardana, I Manajemen Sumber Daya Manusia. Graha Ilmu, Yogyakarta. Byars, L., Rue, S Human Resources Management. Sixth Edition. The McGraw Hill Companies, USA. Dharma Manajemen Sumber Daya Manusia, Ghalia Indonesia, Jakarta. Hana, L Pengaruh Kompensasi terhadap Produktivitas Kerja pada PT. Carsurindo Superintendent Medan. Medan: Jurusan Manajemen, Fakultas Ekonomi, Universitas Diponegoro. Harsono Manajemen Pabrik. Balai Aksara, Jakarta. Kanzunnudin, M Pengaruh Upah dan Pengawasan terhadap Produktivitas Karyawan PT. Tonga Tiur Putra Kragan. Semarang: STIEPARI. Kotler, P., Armstrong, G Marketing an Introduction, Fifth Edition,Prentice-Hall, Inc. Kuncoro, M., Suhadjono Manajemen Perbankan Teori dan Aplikasi, Edisi Pertama. BPFE, Yogyakarta. Martono Bank dan Lembaga Keuangan lain, Edisi Pertama. Ekonisis. Yogyakarta. Mayangsari, L Pengaruh Pemberian Insentif terhadap Kinerja Karyawan di Departemen Penjualan PT Pusri. Palembang: Jurusan Manajemen,Fakultas Ekonomi, Universitas Sriwijaya. Milton, J.S., Corbert, J.J Teaching probability and statisthics. Matchchr. UK. Pranata, S Pengaruh Biaya Insentif Terhadap Produktivtas Tenaga Kerja. Tasikmalaya: Jurusan Akuntansi, Fakultas Ekonomi, Universitas Siliwangi. Priyanto, D Buku Saku SPSS. Yogjakarta: Mediakom. Ranupandojo, H Manajemen Personalia, Edisi Keempat. BPFE, Yogyakarta. Riduwan Metode dan Teknik Menyusun Tesis. Alfabeta, Bandung. Indonesia. Sekaran, U Metodologi Penelitian, Edisi Keempat. Salemba Empat, Jakarta. Simamora, H Manajemen Sumber Daya Manusia, Edisi Pertama. BPFE, Yogyakarta. Sugiyono Metode Penelitian Bisnis. Alfabeta, CV., Bandung Supomo, B., Indriartono, N Metodologi Penelitian Bisnis, Edisi Pertama. BPFE, Yogyakarta. Umar, H Metode Penelitian, Cetakan keenam. Raja Grafindo Perkasa. Jakarta Yazid, A Pengaruh gaji terhadap produktivitas kerja karyawan pada CV. Indo Perkasa Computindo Situbondo. Malang : Jurusan Pendidikan IPS, Fakultas Ekonomi, Universitas Negeri Malang. BRI, 2013, Sejarah BRI, accessed on March 18, 2013 <