The Effect of Compensation and Organizational Culture on Work Productivity

Abstract

The phenomenon of the problem in this study is the low productivity of PT Elpindo Reksa employees, which is thought to be influenced by compensation and organizational culture. This study aims to identify the effect of compensation and organizational culture on employee productivity. The research method used is associative research with a quantitative approach. The study population consisted of 41 employees of PT Elpindo Reksa in the transportation section. Data collection techniques were carried out through questionnaires, interviews, observations, and field studies. Data analysis used descriptive statistical analysis, classical assumption test, multiple regression analysis, and hypothesis testing. The results showed that compensation has a positive and significant effect on employee work productivity with a t-count value of 4,137 and a significance of 0,000. In contrast, organizational culture has no significant effect on employee work productivity with a t-count value of 0.167 and a significance of 0.868. Simultaneously, compensation and organizational culture have a significant effect on employee work productivity with an F-count value of 8,932 and a significance of 0.001. This finding indicates that adequate compensation can increase employee work productivity, while organizational culture does not have a significant effect partially on work productivity.