The Influence of the Effectiveness of Performance Benefits on Employee Performance with Employee Welfare as A Mediation Variable (Case Study at the East Java Provincial Inspectorate)

Abstract

Performance allowance is a form of appreciation given by agencies to employees who have good performance and achievement. Effective performance allowance provision can have a good impact, not only on employees, but also on agencies. For employees is the increase in employee welfare and encourage increased motivation to work. Productivity must also be in line with the effectiveness of performance allowances, because both need to go hand in hand. The effectiveness of performance allowances is very influential on employee welfare, because it concerns the needs of the employee's life. Therefore, this study focuses on examining the effect of the effectiveness of performance allowances on employee performance with welfare as a mediating variable. The population in this study were all employees of the Inspectorate of East Java Province, totaling 112 people. Data testing was carried out using Hayes regression analysis techniques as a hypothesis tester. The results obtained are that the provision of performance allowances does not significantly affect performance, but affects employee welfare and welfare can mediate and affect employee performance.