Employee Competencies and Compensation Strategies as Company's Strategic Effort to Escalate Employee Performance

Abstract: The results of the study indicate that employees were not satisfied with their work discipline, competence, and empowerment. Thus, job satisfaction cannot be compared to employee performance. Applying a survey method to reveal the perceptions of 376 employees of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency of the Republic of Indonesia, starting from August 2016 - August 2017, this study reveals work discipline, competence, and empowerment had implications for job satisfaction in improving employee performance. Data were analysed descriptively (weighted mean score) and inferentially (Structural Equation Modeling). The results showed that: (1) Work discipline, competence, empowerment, job satisfaction and performance of the civil servants at the Ministry of Agrarian and Spatial Planning/National Land Agency of the Republic of Indonesia were in “good” category, albeit not optimal; (2) Work discipline, competence, and empowerment simultaneously and partially had significant effect on civil servants’ job satisfaction at the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency of the Republic of Indonesia; and (3) Work discipline, competence, and empowerment both directly and indirectly (through Job Satisfaction) were simultaneously and significantly related to the performance of civil servants of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency of the Republic of Indonesia.

Keywords : Competence, employee performance, empowerment, job satisfaction, work discipline