The Influence of Financial Compensation and Non-Financial Compensation on Employee Performance
Article Sidebar
Non-Financial Compensation,
Employee Performance
Main Article Content
Abstract
Based on a literature review from a number of previous studies, this research aims to study how financial compensation and non-financial compensation affect employee performance. Financial compensation, which includes salary, bonuses and incentives, is considered to play a significant role in improving employee performance, while non-financial compensation, such as recognition, awards and career development, is proven to provide intrinsic satisfaction for employees. To provide a comprehensive picture, this literature review includes research that has been conducted over the last five years by examining various industrial sectors to gain a comprehensive understanding. The results of the literature analysis show that both financial and non-financial compensation have a positive effect on employee performance, although the influence of each factor can vary depending on the characteristics of the organization and type of work. This article provides guidance for management in designing effective compensation strategies to improve performance and retain quality employees.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Adiyanti, S. A., & Nugraha, E. (2023). Pengaruh kompensasi finansial dan kompensasi non-finansial terhadap kinerja karyawan. Remik, 7(1), 166–176. https://doi.org/10.33395/remik.v7i1.11997
Aliyya, A., Frima, R., & Oliyan, F. (n.d.). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan dengan motivasi kerja sebagai variabel intervening (Studi empiris pada BPR di Kota Payakumbuh). https://akuntansi.pnp.ac.id/jabei
Alzahrani, A., & Shaddady, A. (2021). Influences of financial and non-financial compensation on employees’ turnover intention in the energy sector: The case of Aramco IPO. International Business Research, 14(6), 108. https://doi.org/10.5539/ibr.v14n6p108
Arianto, N., Asmalah, L., & Aisiyah Habibah, Y. (n.d.). Pengaruh kompensasi finansial dan motivasi ekstrinsik terhadap kinerja karyawan pada J&T Express HW 2 di Penjaringan, Jakarta Utara. Jurnal Ekonomi dan Bisnis, 3(1), 2022–2157.
Ariskha, A., Yamin Siregar, M., Laili, I., & Safitri, K. (n.d.). The effect of financial compensation and non-financial compensation on the performance of employees of PT. Jaya Beton Indonesia Branch Medan. Jurnal Ilmiah Manajemen dan Bisnis (JIMBI), 1(1). http://jurnalmahasiswa.uma.ac.id/index.php/jimbi
Azizah, N., Hendriati, Y., & Tinggi, S. (2022). The effect of compensation non-financial, motivation, and job description on employee performance at PT. Petrolog Citra Sarana. Management Studies and Entrepreneurship Journal, 3(6). http://journal.yrpipku.com/index.php/msej
Balqish, A. (2023). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan pada Bank Sumut KCP Syariah Simpang Kayu Besar. Jurnal Maneksi, 12, 388–393.
Basyari, A., Rizqi, M., & Nandalia, D. (2024). The influence on employee performance in organization: The study of organizational culture, work environment, financial compensation, and non-financial compensation. Journal ICEB. https://doi.org/10.4108/eai.2-8-2023.2348359
Candraswari, P. D. (2022). Pengaruh pemberian kompensasi finansial dan non-finansial terhadap kinerja karyawan. Jurnal Ilmiah, 1, 3580–3600.
Christy, Y. (2020). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan dengan budaya organisasi sebagai variabel moderasi. Jurnal Ekonomi, XVII, 72–77.
Dwi Agustini, S., Sutrisna, A., & Barat, J. (2023). Pengaruh kompensasi finansial dan komunikasi organisasi terhadap kinerja pegawai. Journal of Management and Creative Business (JMCBUS), 1(2).
Fitryani, V., Febrianty, I., & Haryadi, W. (n.d.). Pengaruh kompensasi finansial terhadap kinerja tenaga medis dan non-medis (Studi pada Puskesmas Kecamatan Brang Ene). http://e-journallppmunsa.ac.id/index.php/jeb
Gybona Manik, A., Andi, K., & Kusumawardani, N. (2021). Pengaruh partisipasi anggaran, kompensasi finansial, dan kompensasi non-finansial terhadap kinerja karyawan PT. Budi Berlian Motors di Lampung. Jurnal Studi Pemerintahan dan Akuntabilitas, 1(1), 55–67. https://doi.org/10.35912/jastaka.v1i1.252
Hamdiah, E. N. (2022). Pengaruh kompensasi finansial, kompensasi non-finansial internal, dan kompensasi non-finansial eksternal terhadap kinerja karyawan (Studi kasus PT. Perkebunan Kopi Kandangan). Seminar Inovasi Manajemen Bisnis dan Akuntansi (SIMBA), 4.
Hutahuruk, V. N. (2023). Pengaruh beban kerja, kompensasi finansial, dan kompensasi non-finansial terhadap kinerja karyawan (Studi kasus bagian produksi PT. Darmasindo Intikaret Tebing Tinggi). Jurnal Manajemen, 2, 146–154.
Ismantara, W. R., & Pranatasari, F. D. (2019). Pengaruh kompensasi finansial dan kompensasi non-finansial terhadap tenaga kerja perusahaan (Studi pada SPBU BS Group). Business Management Journal, 15(1). https://journal.ubm.ac.id/index.php/business-management
Jaiswal, S., Kushe, K., & Lucky, V. (2022). Impact of compensation on the employee's performance. International Journal of Research Publication and Reviews, 2, 183–188.
Khaq, F. N. D. (2022). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan UD. Sumber Rezeki. Jurnal Manajemen dan Bisnis, 1, 71–83.
Latte, J., Studi, P., Bisnis, A., Tinggi, S., & Amuntai, I. A. (2023). Pengaruh kompensasi finansial terhadap kinerja karyawan koperasi konsumen Tirta Kandilo Kabupaten Paser. Jurnal Ekonomi dan Bisnis, 5(2).
Mansaray-Pearce, S., Bangura, A., & Kanu, J. (2019). The impact of financial and non-financial rewards on employee motivation: Case study NRA Sierra Leone. International Journal of Research in Business Studies and Management, 6(5), 32.
Merera J., & Lalise K. (2019). Effect of non-financial compensation on employees' job performance: A case of Jimma Geneti Woreda Health Centers in Horro Guduru, Ethiopia. International Journal of Commerce and Finance, 5(2), 31–44.
Mteiye, M., Mohammed B., & Aliyu, U. (2024). Effect of financial compensation practices on employee performance: A case study of Nigerian public university. International Journal-AIMR, 5(2).
Rizal, M., Handayani, F., & Muhammadiyah Jakarta, S. (2021). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan PT. Sahabat Prima Sukses. BISNIS & MANAJEMEN, 11. Retrieved from http://ejournal.stiemj.ac.id/index.php/ekobis55
Sri Rahayu, A., & Digdowiseiso, R. (2024). The effect of non-financial compensation, organizational culture, and work stress on the performance of employees of the Directorate of Drug Investigation of Polda Metro Jaya in South Jakarta. Journal of Social Science, 5(2), 1.
Supardi, R., Razak, M., & Rahim, D. R. (2020). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan. Jurnal Magister Manajemen Nobel Indonesia, 1. https://e-jurnal.stienobel-indonesia.ac.id/index.php/JMMNI
Syam, N. J. R., Kurniawan, A. W., Sahabuddin, R., & Natsir, U. D. (2023). Pengaruh kompensasi finansial dan non-finansial terhadap kinerja karyawan PT PLN (Persero) UP3 Makassar Utara. SIBATIK JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, dan Pendidikan, 2(6), 1787–1802. https://doi.org/10.54443/sibatik.v2i6.890
Tanjung, D. N. (2022). Pengaruh kompensasi finansial dan kompensasi non-finansial terhadap kinerja karyawan pada PT. Socfin Indonesia Medan. Jurnal Emanis, 1, 10–18.
Utami, D. T., & Syarif, D. A. (2023). Pengaruh kompensasi finansial dan non-finansial terhadap prestasi kerja karyawan PT. Semen Baturaja (Persero) Tbk Palembang. IJIEB: Indonesian Journal of Islamic Economics and Business, 8(2), 365–376. http://e-journal.lp2m.uinjambi.ac.id/ojp/index.php/ijoieb
Yulia Ratnasari, D., Susilaningsih, N., & Heryanto, B. (n.d.). Analisis pengaruh pemberian kompensasi finansial dan non-finansial terhadap kinerja karyawan (Pada karyawan PT Astra International, Tbk-Daihatsu Kediri). RISK: Jurnal Riset Bisnis dan Ekonomi, 4(1). Retrieved from http://ojs.unik-kediri.ac.id/index.php/risk