The Effectiveness of Selection and Financial Incentive Systems in Enhancing Employee Performance

Abstract

Nowadays, Human Resource play important role in the organization success because Employees’ performance is the key aspects that support the company’s operation. The management needs to select the employees that suitable for the jobs and also apply some strategies to enhance the employees’ productivity. Some of the strategies are by giving incentives to increase the employees’ work motivation. High employees’ motivation will also increase employees’ performance while the selection process will also help the company to choose the qualified employees which will have high performance. In this research, the writer used descriptive research and causal research. The writer also gave questionnaires to the employees which are 30 employees. In this research study, the writer proposes 3 variables which are Selection (Variable X1), Financial Incentive System (Variable X2) and Employees performance (Variable Y). Since the data collected from the research is reliable and valid, thus the writer applies the collected data for the process of this study research. The result of this research is Selection has influence to the employees’ performance. We can see from the T test result which T count > T table, which is 10.6 >2.042.We can also see from the determination test that 16.81% of employees’ performance is affected by selection. Financial incentive system has influence to the employees’ performance. We can see from the T test result which T count > T table, which is 5.72 >2.042. We can also see from the determination test that 43.56% of employees’ performance is affected by financial incentive system. Selection and Financial incentive system have influences to the employees’ performance. We can see from the F test result which F count > F table is 16.3 > 1.84 We can also see from the determination test that 54.76% of employees’ performance is affected by selection.