How Discipline Mediates the Relationship between Additional Income and Employee Performance

Abstract

This study aims to examine the effect of additional income on employee performance mediated by employee discipline in the Regional Secretariat of Pasuruan District. Number of respondents used in this study is as many as 50 respondents; all respondents were employees in the Regional Secretariat of Pasuruan District. The data in this study were obtained from the results of filling out the questionnaire. The data were analyzed using the Partial Least Square (PLS) technique with the help of the Smart PLs program. This study found that additional income has a positive and significant effect on performance, this indicates that the better the additional income, the better the employee's performance, and vice versa. The results of further analysis show that additional income has a positive and significant effect on discipline, this shows that the better the employee discipline, the better the employee's performance, and vice versa. The results of this study also indicate that discipline has a positive and significant effect on performance, this indicates that the higher the work discipline of employees, the better the employee's performance, and vice versa. In the mediation test, it is concluded that discipline can mediate the indirect effect of additional income on performance. Additional income in accordance with employee expectations will improve employee work discipline which in turn will improve employee performance.