THE INFLUENCE OF COMPETENCE AND INCENTIVES ON EMPLOYEE PERFORMANCE MEDIATED BY JOB SATISFACTION AT THE TRANSPORTATION AGENCY OF NORTH PENAJAM PASER REGENCY, EAST KALIMANTAN
DOI:
https://doi.org/10.61912/jeinsa.v5i2.512Keywords:
Competence, Incentives, Job Satisfaction, PerformanceAbstract
This Study aims to analyze the effect of competence and incentives on employee performance through job satisfaction at the Department of Transportation Transportation Agency of North Penajam Paser Regency, East Kalimantan. The research approach uses a quantitative method with an explanatory approach involving 99 respondents taken from the research population. Data analysis uses Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPls 3.0. This analysis consists of evaluating the measurement model (Outer Model) which includes Convergent Validity test, Determinant Validity test, Composite Reliability test, AVE values, and continues with assessing the structural model (Inner Model) with explanations of R Square test, Q Square, Direct and Indirect Effect tests, as well as hypothesis testing with t and P values. The analysis results show the hypothesis that Competence has a positive and significant effect on employee performance, Competence has a positive and significant effect on job satisfaction, Incentives do not have a significant effect on employee performance, Incentives have a positive and significant effect on job satisfaction, Competence has a positive and significant effect on performance through job satisfaction, Incentives have a positive and significant effect on performance through job satisfaction, incentives affect employee performance through job satisfaction. These findings show that improving employee performance is influenced not only by competence but also by job satisfaction, which acts as a mediating mechanism in that relationship.
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