The Effect of the Reward System on Human Resources Performance through Improving Competence of KLC Users in the Tanjung Emas Customs and Excise Environment

Authors

Abstract

This study aims to analyze the role of the Reward System in improving Human Resources (HR) Performance at the Medium Customs and Excise Supervision and Service Office Type C of Tanjung Emas through Competence Improvement as a mediating variable. This research uses a quantitative explanatory approach to test the relationships between variables and the formulated hypotheses. The study population includes all 225 active employees in the office, with a sample of 144 respondents taken using a non-probability sampling technique through convenience sampling. Primary data was obtained through the distribution of questionnaires using a 1–5 Likert scale, ranging from "Strongly Disagree" to "Strongly Agree". This instrument is used to measure respondents' perceptions of the variables studied. Data analysis was conducted using the Partial Least Square (PLS) method via Smart PLS 4 software to test the relationships between variables in the structural model. The results showed that the Reward System does not have a direct and significant effect on HR Performance. However, the Reward System has a positive and significant effect on Competence Improvement. In addition, Competence Improvement also has a positive and significant effect on HR Performance. These findings indicate that Competence Improvement fully mediates the relationship, meaning the reward system will only be effective in improving customs HR performance if it can first successfully encourage the enhancement of employee competence.

Author Biography

  • Luqman Setiawan, Sultan Agung Islamic University
    ACADEMICIAN

References

Journals:

Adityarini, A. (2022). Pengaruh Sistem Reward dan Motivasi Kerja Terhadap Kinerja SDM pada Sektor Publik. Jurnal Manajemen Sumber Daya Manusia, 10(2), 45-58.

Anwar, M., & Dunija, S. (2016). Evaluasi Kebijakan Insentif dan Kinerja Pegawai. Jurnal Administrasi Publik, 4(1), 12-25.

Bandura, A. (1997). Self-efficacy: The exercise of control. W.H. Freeman. Boyatzis, R. E. (2008). Competencies in the 21st Century. Journal of Management Development, 27(1), 5-12.

Kaur, S., & Mittal, R. (2020). The Role of Technical Skills and Competence on Employee Productivity. International Journal of Human Resource Studies, 10(3), 112-125.

Kuhal, A., et al. (2020). Determinan Kinerja Pegawai: Studi pada Kompetensi dan Pengembangan Kapasitas. Jurnal Manajemen Publik, 8(2), 88-102.

Laguerre, R. A., & Barnes-Farrell, J. L. (2024). Modern Performance Models for Civil Service in the Digital Era: Autonomy, Quality, and Timeliness. Public Personnel Management, 53(1), 22-45.

Li Chunling. (2023). Reward System, Organizational Justice, and Employee Performance in the Digital Era. Journal of Asian Business Strategy, 13(1), 34-49.

Lubis, R., & Hanum, S. (2024). Kejelasan Sistem Reward Sebagai Prediktor Motivasi Pembelajaran E-Learning Pegawai. Jurnal Psikologi Industri dan Organisasi, 12(1), 60-75.

Maurer, T. J., Weiss, E. M., & Barbeite, F. G. (2003). A model of involvement in work-related learning and development activity: The effects of individual, situational, motivational, and age variables. Journal of Applied Psychology, 88(4), 707–724.

Nurlindah, N., & Rahim, A. (2018). Faktor Motivasi Intrinsik dan Lingkungan Kerja terhadap Peningkatan Kinerja Pegawai. Jurnal Ilmu Manajemen, 6(3), 210-225.

Pham, N. T., & Phan, Q. P. (2021). E-Learning in the Public Sector: Transfer of Training and Competency Enhancement. International Journal of Training and Development, 25(2), 150-168.

Pradana, A., et al. (2021). Pengaruh Kompetensi Digital Terhadap Kinerja Aparatur Sipil Negara. Jurnal Kebijakan dan Manajemen Publik, 9(1), 30-45.

Books:

Armstrong, M. (2021). Armstrong's Handbook of Human Resource Management Practice (15th ed.). Kogan Page.

Cabrera, A., & Cabrera, E. F. (2005). Knowledge-sharing dilemmas. Organization Studies, 26(5), 720-739.

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern Methods for Business Research (pp. 295–336). Lawrence Erlbaum Associates.

Deci, E. L., & Ryan, R. M. (2000). The "what" and "why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.

Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362.

Ghozali, I. (2011). Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. Badan Penerbit Universitas Diponegoro.

Ghozali, I. (2014). Structural Equation Modeling, Metode Alternatif dengan Partial Least Square (PLS) (Edisi 4). Badan Penerbit Universitas Diponegoro.

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.

Ghozali, I., & Latan, H. (2015). Partial Least Squares: Konsep, Teknik dan Aplikasi menggunakan program SmartPLS 3.0. Badan Penerbit Universitas Diponegoro.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2020). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Sage Publications.

Hair, J. F., Page, M., & Brunsveld, N. (2021). Essentials of Business Research Methods. Routledge.

Kyndt, E., Dochy, F., Michielsen, M., & Moeyaert, B. (2011). Employee Retention: Organisational and Personal Perspectives. Vocations and Learning, 4(3), 195-215.

Lin, C. P. (2007). To share or not to share: Modeling knowledge sharing using theory of reasoned action. Personnel Review, 36(3), 411-428.

Mangkunegara, A. P. (2017). Manajemen Sumber Daya Manusia Perusahaan. PT Remaja Rosdakarya.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human Resource Management: Gaining a Competitive Advantage. McGraw-Hill Education.

Downloads

Published

2026-09-16

Issue

Vol. 3 No. 3 (2026): September 2026

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  • Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).