A PLS-SEM ANALYSIS ON PROVISION OF ADDITIONAL EMPLOYEE INCOME (TPP) TO INCREASE JOB MOTIVATION AND EMPLOYEE PERFORMANCE

Abstract

Additional Employee Income (TPP) is an incentive given to employees in addition to their regular pay that is dependent on their performance for a specific time. Increasing employee income has a significant impact on how well they perform, which is expected to increase their motivation when providing services to organizations or communities. It can also improve the welfare of civil servants working for the regional government, Dharmasraya Regency. Path analysis was used in this study method's quantitative analysis. TPP serves as the independent variable in this study, while motivation serves as the intervening variable and performance serves as the dependent variable. This research used a Likert scale with a measurement range of 1 to 5. Online surveys are used for data collection, and SEM  is used for analysis with SmartPLS 3.0 software tools. Respondents are employees of the Regional Government of Dharmasraya Regency, and the study's stratified random selection approach yielded 379 respondents as samples. Validity tests, reliability tests, and hypothesis tests make up the phases of data analysis. The findings indicated that offering TPP has a large impact on employee performance, as does job motivation, and that TPP itself has a considerable impact on employee performance.