The Effect of Compensation on Employee Work Productivity at the Office of the Department of Trade, Cooperatives, and SMEs (Disdagkopukm) of Barito Timur Regency

This study aims to analyze the effect of compensation on employee work productivity at the Office of Trade, Cooperatives, and SMEs (DISDAGKOPUKM) of Barito Timur Regency, while also identifying the variable that most dominantly influences employee work productivity. The theoretical foundation used is human resource management, with Multiple Linear Regression as the analytical method. Based on the results of the analysis, the regression equation obtained is Y = 0.790 + 0.480 X1 + 0.187 X2, which indicates that direct compensation (X1) has a positive effect on employee work productivity. The correlation value (R) of 0.679 indicates a strong relationship between the independent variables (X1 and X2) and the dependent variable (Y). In addition, the coefficient of determination (R²) of 0.462 indicates that both direct and indirect compensation jointly contribute 46.2% to employee work productivity. Based on the F-test results, the calculated F value is 16.287, which is greater than the table F value of 3.24, indicating that the first hypothesis is accepted, meaning there is a significant effect of direct compensation (X1) and indirect compensation (X2) on employee work productivity (Y). Meanwhile, in the t-test, the direct compensation variable shows the most dominant effect with a beta value of 0.551. The calculated t value of 3.801 is greater than the table t value of 2.02, and the significance value of 0.001 < 0.05, thus the second hypothesis is also accepted.