The Influence of Competence and Work Facilities on the Employees' Performance with Work Motivation as a Moderating Variable

Abstract

This study aims to determine the effect of competence and work facilities on work motivation and its impact on the employees’ performance of the Medium Customs and Excise Service Office of Palembang. The population in this study was employees in the Medium Customs and Excise Service Office of Palembang, with 55 people taking samples using the proportionate stratified random sampling technique. Data was collected using a questionnaire containing a list of statements regarding each variable studied. The data analysis used in this research is by using the Structural Equation Model (SEM) – Partial Least Square (PLS) analysis method, which is operated through the SmartPLS program. Hypothesis testing with the PLS approach was carried out in two stages: testing the outer and inner models. The outer model test was conducted to prove the validity and reliability of all indicators on each variable. The inner model test is carried out to test the influence between variables according to the previously established hypothesis. From the model built and hypothesis testing conducted using SmartPLS in this study, the results showed that 1) competence and work facilities significantly positively affect work motivation and employee performance; 2) work motivation also has a significant positive effect on employee performance; 3) there is an influence of competence on employee performance mediated by work motivation; and 4) there is the effect of work facilities on employee performance mediated by employee work motivation at Medium Customs and Excise Service Office of Palembang. So, it is worth paying more attention to the formation of employees' potential by improving their qualifications and working conditions. When selecting employees, management must take into account their education and qualifications. In the work process, it is advisable to encourage the creative development of employees in the team, which will improve their work's effectiveness. Periodic evaluation of the employee's performance and providing certain rewards in the form of vacations or additional bonuses are also crucial in maintaining work motivation. The working environment can change, so it is necessary to analyze the factors affecting employees’ performance periodically.