Competence and Performance Allowances as Determinants of Public Sector Employee Performance: A Study at the Aceh Human Resources Development Agency
Keywords:
Competence; Performance Allowance; Employee Performance; Multiple Linear Regression; State Civil Servants
Abstract
Indonesian bureaucratic reform relies on two main instruments to improve civil servant performance: competency development and performance allowances, but empirical evidence regarding their effectiveness remains divided. This study examines the influence of competency and performance allowances on employee performance at the Aceh Human Resources Development Agency (BPSDM), while also determining which predictor is more dominant. A quantitative explanatory approach with a cross-sectional design was used on 69 respondents drawn by simple random sampling from a population of 219 employees using the Slovin formula at a tolerance of 10%. Data were collected through a five-point Likert scale questionnaire containing twelve items and analyzed by multiple linear regression using SPSS 25. All items were valid with correlation coefficients ranging from 0.606 to 0.840 above the critical value of 0.235, and all variables were reliable with Cronbach's alpha ranging from 0.655 to 0.801. The results showed that competency had a positive and significant effect with a calculated t-value of 2.538 and a significance of 0.014, as did performance allowances with a calculated t-value of 3.059 and a significance of 0.003. Simultaneously, both had a significant effect with an F count of 19.474 exceeding the F table of 3.14 and explaining 37.1% of the variation in employee performance. Based on the standardized coefficient, performance allowances were the dominant predictor with a beta of 0.372 compared to competency of 0.309, a finding that contradicted the unstandardized coefficient reading and had direct implications for setting agency budget priorities.
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Published
2026-08-12
How to Cite
Banta Karollah, Santri Rahayu, M. Zainal Abidin, & Nurrahmad. (2026). Competence and Performance Allowances as Determinants of Public Sector Employee Performance: A Study at the Aceh Human Resources Development Agency. International Journal of Economics, Business and Innovation Research, 5(05), 954-988. https://doi.org/10.63922/ijebir.v5i05.5733
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