The Role of Human Resource Competence and Compensation Systems on Organizational Loyalty and Commitment
Keywords:
Job Competency, Compensation, Organizational Commitment, Human Resources.Abstract
This study aims to analyze the effect of Job Competence and Compensation on Organizational Commitment. The main focus is to evaluate how much these two variables contribute in increasing the level of employee commitment to the organization. This study uses a quantitative approach with multiple regression analysis to test the relationship between the independent variables (Job Competence and Compensation) and the dependent variable (Organizational Commitment). Data was collected from 100 respondents working in various organizations.The results of the analysis show that Compensation has a significant influence on Organizational Commitment with a coefficient value of 0.335 and a significance of 0.000, indicating that an increase in compensation received by employees significantly increases their commitment to the organization. In contrast, Job Competency does not show a significant influence with a coefficient value of 0.152 and a significance of 0.117, indicating that an increase in employees' job competency does not statistically increase their commitment to the organization. The regression model has an R Square of 0.321, which means that 32.1% of the variability in Organizational Commitment can be explained by the variables in the model.
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