OPTIMIZATION OF EMPLOYEE PERFORMANCE THROUGH A COMPENSATION SYSTEM
Abstract
This study was conducted with the aim of describing the compensation system in improving employee performance. It is a library research study. Data were obtained based on a literature review from various sources. The data analysis technique was conducted through content analysis or in-depth analysis related to the focus of the study, which includes the definition, types, objectives, factors affecting compensation, as well as the principles and methods of compensation provision. The research instrument was the researcher them self. The data obtained were then interpreted using a descriptive qualitative method. This study found that an organization's performance is determined by how well its leadership can create and encourage employee performance to achieve established goals. Compensation provision is one of the efforts to improve employee performance. The level of satisfaction derived from the compensation provided can influence employee motivation to work harder to achieve organizational goals. By understanding the importance of a good compensation system, organizations can create an environment that supports employee growth, improves overall performance, and achieves long-term success within the organization.
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