The Effect of Financial and Non-Financial Compensation on Employee Productivity at the Regional Disaster Management Agency (BPBD) of Indragiri Hilir Regency

Firdaus Firdaus; Syafrinadina Syafrinadina; Widyawati Widyawati

doi:10.55927/fjsr.v5i2.14

Authors

Firdaus Firdaus Universitas Islam Indragiri
Syafrinadina Syafrinadina Universitas Islam Indragiri
Widyawati Widyawati Universitas Islam Indragiri

DOI:

https://doi.org/10.55927/fjsr.v5i2.14

Keywords:

Financial Compensation, Non-Financial Compensation, Employee Productivity, Rapid Reaction Team, BPBD

Abstract

This study aims to analyze the effect of financial and non-financial compensation on the productivity of employees of the Rapid Reaction Team (TRC) of BPBD Indragiri Hilir Regency. The study used a quantitative approach with a survey method through a Likert scale questionnaire. The research population is all members of the TRC BPBD of Indragiri Hilir Regency, with a census sampling technique of 52 respondents. Data analysis was carried out using PLS-SEM. The results of the study show that financial and non-financial compensation have a positive and significant effect on employee productivity, with the influence of financial compensation being more dominant. These findings imply the need to strengthen a fair and proportionate compensation system to increase employee productivity in high-risk work environments.

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