Human Resource Performance Improvement Model Through Compensation, Training, and Loyalty

Abstract

The purpose of this research is to describe and analyze the model of improving human resource performance through compensation, training, and loyalty. This study applies the Structural Equation Modeling (SEM) approach using the soft approach of Smart PLS4. The population consists of permanent employees of Triton Adventure Store, a retail store in Kaimana Regency, West Papua Province. The sampling method used is saturated sampling with the entire population serving as a sample of 100 people. The research instrument in the form of a questionnaire was distributed via Google Forms. Data analysis used Partial Least Square (PLS) with the aid of Smart PLS4 software. Hypothesis testing was conducted to examine the effects between variables with the following details: 1) If human resource loyalty increases, then human resource performance improves, 2) If compensation improves, then human resource performance improves, 3) If compensation improves, then loyalty. Referring to the results of this hypothesis test, it can be concluded that increasing human resource loyalty enhances human resources, and improving compensation can enhance human resource performance. Likewise, better compensation can increase human resource loyalty, and better employee training can further increase human resource loyalty. Additionally, improving employee training can lead to increased employee performance. The findings of this study indicate that to improve human resource performance, it can be achieved by enhancing compensation, providing good training, and fostering human resource loyalty.