The Influences of Competency and Compensation on Employee Performance at PT Balai Pustaka (Persero) as Mediated by Work Engagement

Abstract

This study aims to analyze the influences of competency and compensation on employee performance as mediated by work engagement. The population of this study is permanent employees at PT Balai Pustaka (Persero) with a total sample of 69 (sixty-nine) employees. The data analysis method uses Structural Equation Model-Partial Least Square (SEM-PLS) using SmartPLS 3.2.8. The results found that competency has positive and significant impact on employee performance and work engagement; compensation has positive but insignificant impact on employee performance, on the other hand compensation has positive and significant impact on work engagement; work engagement has negative and insignificant impact on employee engagement. Meanwhile, work engagement does not mediate both competency and compensation on employee performance. The company leadership is suggested to increase employee’s competency to increase employee performance.