Abstract
PT XYZ is foreign investment company on food and beverages manufacturer with health benefit positioning. PT XYZ is willing to consistent of safety, quality and productivity (SQP) aspect, therefore should be encouraged by high quality human resources. Employee motivation was stimulated by remuneration program in order to increase employee performance in PT XYZ. The aim of this study was to analyze remuneration effect towards employee motivation and it’s implication to employee performance at PT XYZ using employee perception. The population of this study is taken from staff level to supervisor level from 10 Departments. The numbers of sample are 132 people. The sampling technique used in the study was stratified with purposive and convenience sampling method with the analytical method using Structural Equation Modeling (SEM). The result of this study shows remuneration has significant effect towards employee motivation and employee performance, while motivation has insignificant effect towards employee performance. SEM results show each highest coefficient are wages based on needs indicator at remuneration variable, individual development indicator at variable motivation and obedience indicator at employee performance variable. Management of PT XYZ should be maintaining components of remuneration, motivation and employee performance that’s already had good score and also pay attention to component of remuneration which has low score index to enhance employee motivation and also employee performance. Keywords: employee motivation, employee performance, remuneration, SEM
Highlights
Consumer goods industry market in Indonesia is experiencing positive growth
Further Bernando suggests that the increasing population and growing middle class income communities, the projected improvement in the economy with increased purchasing power, as well as the rapid growth of modern retail outlets drive the demand for food and beverage industry
Bernando et al (2015) suggested AC Nielsen study showed 48% of total spending middle class income in Indonesia is for the Fast Moving Consumer Goods (FMCG), especially food and beverages
Summary
Consumer goods industry market in Indonesia is experiencing positive growth. According Fisamawati (2013), an increase of 9,6% in 2011 from the previous year, with the industry's market value has reached Rp 165,95 trillion. Results of research conducted Hameed et al (2014) and Rizal et al (2014) They state that the remuneration significantly affects employee motivation. Studies conducted Widyastuti (2010) shows the influence of the perception of employee remuneration, motivation and discipline of work on the performance was very strong and real. The study was conducted on foreign companies operating in FMCG food and beverage industry is facing a growing and increasingly fierce competition. The Company is committed to consistent with aspects of safety, quality and productivity (SQP) These aspects need to be encouraged by the quality of human resources; XYZ wants to improve the quality of human resources through a program of continuous improvement in competition among employees on the activities of Continuous Improvement (CI) and discordant thoughts on Idea activities for Improvement (IFI). The purpose of this research is to analyze the perception of employees against remuneration, motivation and performance of employees at PT XYZ, analyze relationships and the influence of remuneration to the employees' motivation in PT XYZ, analyze the relationship and the influence of remuneration to employee performance in PT XYZ, analyze relationships and the influence of motivation on employee performance and formulate the company's efforts to improve employee performance
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