Title:
The Effect of Compensation on Loyalty, Work Ethics, and Productivity of Contract Labour (Case Study on Polinema)

Authors:
Antin Suhartati, Hanif Mauludin, Yuyuk Liana, Indonesia

Abstract:

This study aims to analyze the direct and indirect effects of compensation on loyalty, work ethic, and productivity of contract workers (a case study on Polinema). The population in this study were all administrative staff of the academic section of Polinema, which amounted to 209 employees. The sampling technique used in this study was purposive sampling with a total sample of 39 respondents. The data analysis used is path analysis with the help of Smart Partial Least Square (PLS) software. The results of this study indicate that 1) Compensation has a positive and significant effect on productivity. 2) Compensation has a positive and insignificant effect on loyalty. 3) Compensation has a positive and significant effect on work ethic. 4) Loyalty has no significant effect on productivity. 5) Work ethic has a positive and significant effect on productivity. 6) Loyalty does not mediate the relationship between compensation and productivity. 7) Work ethic mediates the relationship between compensation and productivity.

DOI: https://doi.org/10.51505/IJEBMR.2022.61014