Revista de Economía y Negocios

The Effect of Wages and Services on Employee Performance at PT. Aerofood Indonesia Kualanamu International Airport Branch, Medan

Abstract

Amir Makhmud Zain NST and Dian Pernama Sari

This study aims to determine whether wages and benefits for working period both partially and simultaneously have a significant effect on employee performance at PT. Aerofood Indonesia Kualanamu International Airport Medan Branch and what is the percentage. The method used in this study is a quantitative method with several tests, namely reliability analysis, classical assumption deviation test and linear regression. Based on the results of the primary data regression which was processed using SPSS 20, the following multiple linear regression equation was obtained: Y=8,358+0,059 X1+0,747 X2. Partially, the wage variable (X1) has no significant effect on employee performance, as evidenced by the value of t count t table (7.085>1.994). Simultaneously, the variable wages (X1) and benefits (X2) have a significant effect on employee performance. This means that the hypothesis in this study is accepted, as evidenced by the calculated F-value >F-table (26,299>3,13). Wage variable (X1) and long service allowance (X2) were able to contribute to the influence of the performance variable by 43.3% while the remaining 56.7% was influenced by other variables not examined in this study. From the conclusions above, the authors suggest seeing the low percentage of the influence of the variable wages and benefits on employee performance, the company and employees must work together to support the professionalism of employees so that the goal of increasing professionalism can be achieved. It is hoped that there will be in-depth research. In the future, other researchers have conducted research regarding the variable of wages and long service benefits on performance.