Wage Policy Impact on Employee Performance in Industry Areas Bekasi District

Sabil Sabil,Widarto Rachbini,Mohamad Syamsul Maarif,Edie Toet Hendratno

doi:10.38035/jafm.v1i2.32

Sabil Sabil, Widarto Rachbini + Show 2 more

Open Access

https://doi.org/10.38035/jafm.v1i2.32

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Abstract

In the last few years, employee performance has decreased because the wages received are considered insufficient to meet the needs of a decent life. The purpose of this study was to examine and analyze those influencing wage policies and employee performance in companies in the Bekasi Regency industrial area. The study population was employees of companies in the industrial area of Bekasi Regency. In accordance with structural equition modeling (SEM), a sample of 285 respondents was selected through a purposive sampling technique. Data analysis was applied by applying government regulation theory, trade union theory, labor productivity theory, wage policy theory and employee performance theory. Hypothesis testing was carried out using SEM with the Lisrel Version 8.80 application. The results showed that the direct effect of government regulations, labor unions, work productivity and living costs has a significant effect on wage policies and government regulations, labor unions, wage policies have a significant effect on employee performance and indirect effects. government regulations, labor unions, work productivity, cost of living, have a significant effect on employee performance through wage policies.

Highlights

Wage policy issues are important for both employees and organizations
The role of trade unions in fighting for their members to get a decent wage, research (Kurniawan & Sulistyaningrum, 2017), the results show that on average, private sector workers in Indonesia who participate as members of labor unions will have a higher wage by 17% compared to workers who are outside the labor union
Companies in the Bekasi Regency industrial area have the same role as other labor unions, namely playing a defensive role in increasing the income of their members by applying good pressure to the government, which in this case has a role in making policies in determining the level of compensation as well as trade unions to emphasize companies to always pay attention to wage levels

Summary

Introduction

Wage policy issues are important for both employees and organizations. Paying wages to employees must have a logical and rational basis. The amount of wages received by employees is a reflection or a measure of the work value of the employee itself, the size of the wages can affect employee performance, if the wages are inadequate or inappropriate, the employee's performance will decrease, according to (Noto Atmodjo, 2003) low will have an impact on decreasing the attractiveness of work and will have an impact on the decrease in karyan performance. In order for employee performance to continue to increase, it is necessary to establish policies that are acceptable to workers, employers and the government. According to (Nurhidayati, 2016) In order for employee performance to remain good and increase, it is necessary to establish a wage policy that is agreed upon between the government, trade unions and employers

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