THE EFFECT OF EMPLOYEE ENGAGEMENT, WORK-LIFE BALANCE AND COMPENSATION ON EMPLOYEE PRODUCTIVITY AT PT. LESTARI ALAM SEGAR
Keywords:
Employee Engagement, Work-Life Balance, Compensation, Employee ProductivityAbstract
This study aims to analyze and examine the effect of employee engagement, work-life balance, and compensation on employee productivity at PT. Lestari Alam Segar, both partially and simultaneously. The study is motivated by indications that employee productivity in the production division has not been optimal, allegedly influenced by low work engagement, an imbalance between work and personal life, and a compensation system that is not yet fully transparent. This research employed a quantitative approach with an associative research design. The population consisted of all permanent employees of the Production Division of PT. Lestari Alam Segar, and a saturated sampling technique (census) was applied, resulting in a sample of 92 respondents. Data were collected through a questionnaire that had been tested for validity and reliability. Data analysis techniques used were multiple linear regression analysis, t-test, F-test, and the coefficient of determination. The results show that employee engagement has a positive and significant effect on employee productivity (regression coefficient 0.288; significance 0.004). Work-life balance has a positive and significant effect on employee productivity (regression coefficient 0.305; significance 0.002) and is the most dominant variable in the model. Compensation has a positive and significant effect on employee productivity (regression coefficient 0.241; significance 0.008). Simultaneously, the three variables have a significant effect on employee productivity, with an F-count of 32.396 and a significance value of <0.001. The coefficient of determination (R Square) of 0.525 indicates that 52.5% of the variation in employee productivity can be explained by employee engagement, work-life balance, and compensation, while the remainder is explained by other factors outside this research model.
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