EMPLOYEE PERFORMANCE: ARE HUMAN RESOURCE QUALITY, COMPENSATION FAIRNESS NEEDED?

Abstract

This article discusses the important role of management in improving the quality of human resources (HR) in the context of modern organizations. The main objective is to determine the extent to which the quality of human resources and perceptions of compensation justice can affect individual performance in the workplace. This research uses a quantitative method with a survey approach, where data is collected through questionnaires distributed to a number of employees. The analysis technique used is multiple linear regression to test the relationship between these variables. The results showed that both human resource quality and compensation equity have a positive and significant influence on employee performance. Higher quality of human resources is proven to increase work effectiveness and productivity, while compensation justice perceived by employees encourages motivation and job satisfaction, which has a positive impact on their performance. Thus, companies are advised to focus on improving the quality of human resources and implementing a fair compensation system to improve overall employee performance.