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Advances in Social Sciences Research Journal – Vol.7, No.11
Publication Date: November 25, 2020
DOI:10.14738/assrj.711.9366.
Nurlina, (2020). The Effect Of Welfare Benefits Toward Employee Performance At Pt Bank Panin, Tbk In Makassar City. Advances in
Social Sciences Research Journal, 7(11) 445-451.
The Effect Of Welfare Benefits Toward Employee Performance At Pt
Bank Panin, Tbk In Makassar City
Nurlina
The Lecturer of Department of Management
STIMI-YAPMI Makassar, South-Sulawesi, Indonesia
ABSTRACT
This study aims to determine the effect of welfare benefits toward
employee performance at PT. Bank Panin, Tbk in Makassar City. This
research is a quantitative research. The population in this study were all
employees at PT Bank Panin, Tbk in Makassar City, of 228 people. Then
the sample is the author takes 20 percent of the population, of 46 people.
Data collection methods are carried out by observation, documentation,
and questionnaires. The data analysis technique used is a simple linear
regression analysis for hypothesis testing. The results showed that
providing welfare benefits to employees had a positive and significant
effect on employee performance at PT. Bank Panin, Tbk in Makassar
City.
Keywords: Welfare Benefits, Employee Performance.
INTRODUCTION
Human resources are the most important assets in an organization and in an effort to maintain and
develop the organization or company. In order to fostering and developing human resources, the
element of welfare needs to be taken seriously because employee welfare is a very decisive factor
in spurring the spirit of work and productivity of employee. With the increasing performance of
employee, it can also support or affect the welfare of the employee, either directly or indirectly.
Welfare materially directly related to employee achievement, and can be provided in the form of
compensation, such as transportation allowance, table money, pension allowance, religious holiday
allowances, functional allowance, pocket money, bonuses, education allowance, medical allowance,
dress uniform, furlough money, and death allowance. Meanwhile, non-material employee welfare
can be in the form of providing facilities and services for employees such as the facilities provided
by the company. Thus, it can be said that the welfare program consists of two main components,
namely: compensation directly related to employee work performance as well as compensation that
is not directly related to employee work performance but provided by the company to employees
who are seen as additional income.
Providing employee welfare is very meaningful and beneficial for the company and employees. For
employees, the provision of welfare is useful for creating harmonious industrial relations between
the company and employees, improve employee morale, work discipline, and employee loyalty to
the company (credibility, commitment and character). For companies, it can improve work
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Advances in Social Sciences Research Journal (ASSRJ) Vol.7, Issue 11, November-2020
performance, work efficiency and work effectiveness. Employee welfare programs are very
important for the realization of company goals, but employee welfare programs must be prepared
based on existing regulations, based on the principles of fairness and guided by the capabilities of a
company.
Therefore, PT. Bank Panin, Tbk in Makassar City as one of the companies engaged in the banking
sector needs to improve the performance of their employees through a motivational process which
is manifested by providing welfare benefits to their employees which in the end is expected to
improve employee performance at this company.
LITERATURE REVIEW
Allowances are any additional benefits offered to workers, for example the use of vehicles, free
lunch, low or no interest loans, health services, vacation assistance, and high-level share purchase
schemes, such as senior managers, companies usually prefer to provide more benefits than
increasing salary.
This allowance is only given to those who have certain positions, such as supervisors, chief,
managers, or directors. The amount of allowance for each personnel is not the same. It really
depends on the work load, the resulting achievements and the weight of the responsibilities carried,
the job allowance is usually given together with the basic salary.
Every employee who works outside working hours or employees who work on holidays, or
employees who have working hours greater than 8 hours a day, according to government
regulations, the employee concerned is unable to receive overtime allowances. The amount of
overtime allowances varies greatly, but usually each company has its own regulations that
specifically regulate the amount of overtime allowance for each employee they have.
Religious Holiday allowances are income that must be paid by employers to workers or their
families who are approaching religious holidays in the form of money or other forms. According to
the 1994 government regulation, "everyone who employs other people is called an entrepreneur
and is obliged to pay The Religious Holiday Allowances". This regulation does not question whether
an entrepreneur is an individual, has limited individuals, a foundation or association. In essence,
everyone who employs other people in exchange for wages is obliged to pay the religious holiday
allowances.
Welfare is a form of human condition that is able to fulfill various aspects of their life's needs, so
that it create a society that is in a safe, secure, peaceful condition, and so on, which concerns things
that are positive for human life. Welfare can also be useful. The fulfillment of all aspects of human
physical and spiritual needs, which in turn creates happiness in life.
The welfare programs provided by companies, institutions or organizations to employees should
be useful, so that they can encourage the achievement of effective company goals. Employee welfare
programs should be in accordance with the provisions set by the company and not. Performance
according to Sulistiyani (2009: 223) is a combination of abilities, efforts, and opportunities that can
be assessed from the results of his work. Meanwhile, according to Bernandin and Russel in
Sulistiyani (2009: 223) states that performance is a record of outcomes resulting from certain
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URL: http://dx.doi.org/10.14738/assrj.711.9366 447
Nurlina, (2020). The Effect Of Welfare Benefits Toward Employee Performance At Pt Bank Panin, Tbk In Makassar City. Advances in Social Sciences Research
Journal, 7(11) 445-451.
employee functions or activities carried out during a certain period of time. In order to achieve the
company's goals and objectives, the organization is organized into smaller units, with a clear
division of labor, work systems and work mechanisms.
According to Veitzhal (2009: 309) Performance refers to the level of achievement of tasks that make
up an employee's job. Performance reflects how well the employee meets the requirements of a job.
Often misinterpreted as an effort, which reflects the energy expended, performance is measured in
terms of results. Fahmi (2010: 20) definition of performance is the result obtained by an
organization whether the organization is profit oriented and non profit oriented generated over a
period of time.
Supriyono (2010: 281) argues that: "Performance is a result achieved by a person in carrying out
the tasks assigned to him based on skills, experience, and ability as well as time". Veithzal (2009:
312) in his book Human Resource Management company, states that "Performance is the result of
work in quality and quantity achieved by an employee in carrying out his duties in accordance with
the responsibilities assigned to him".
Furthermore, the schematic of this research framework is as follows:
Figure 1. Schematic Framework
RESEARCH METHOD
The research method used is quantitative descriptive analysis. The research sample of 46
employees, namely 20% of the population of 228 employees at PT. Bank Panin Tbk. Data collection
method with observation, interviews and documentation. The data analysis technique used is a
simple linear regression with the help of a program
RESULT
Table 1. Welfare Benefits to Fulfilling Their Life Needs
Options Answer category Frequency Percentage (%)
A Very Fulfilling 30 65.22
B Fulfilling 5 10.87
C Quite Fulfilling 11 23.91
D Less Fulfilling 0 0
E Not Fulfilling 0 0
Amount 46 100.00
Source: Questionnaire processed data, 2020
Welfare Benefits Employee
performance
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Advances in Social Sciences Research Journal (ASSRJ) Vol.7, Issue 11, November-2020
Table 2. Benefits Received by Employees Are Given Fairly
Options Answer Category Frequency Percentage (%)
A Very fair 14 30.43
B Fair 27 58.70
C Fair enough 5 10.87
D Not fair 0 0
E Unfair 0 0
Amount 46 100.00
Source: Questionnaire processed data, 2020
Table 3 Receiving welfare benefits on time
Options Answer Category Frequency Percentage (%)
A Very Precise (5 months) 37 80.43
B Precise (6 months) 4 8.70
C Quite Precise (7 months) 5 10.87
D Less Precise (8 months) 0 0
E Inaccurate (9 months) 0 0
Amount 46 100.00
Source: Questionnaire processed data, 2020
Table 4. The Level of Accuracy of Employees Receiving Benefits
Options Answer Category Frequency Percentage (%)
A Very precise 16 34.78
B Precise 18 39.13
C Quite Precise 11 23.91
D Less precise 1 2.17
E Inaccurate 0 0
Amount 46 100.00
Source: Questionnaire processed data, 2020
Table 5. Welfare Benefits Able to Improve Performance
Options Answer Category Frequency Percentage(%)
A Very Capable 41 89.13
B Capable 2 4.35
C Quite Capable 3 6.52
D Under- Capable 0 0
E Not Capable 0 0
amount 46 100.00
Source: Questionnaire processed data, 2020
Based on the data obtained through the questionnaire distributed to the respondents as listed in
table 1-5, the results of the analysis from the SPSS process are as follows:
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URL: http://dx.doi.org/10.14738/assrj.711.9366 449
Nurlina, (2020). The Effect Of Welfare Benefits Toward Employee Performance At Pt Bank Panin, Tbk In Makassar City. Advances in Social Sciences Research
Journal, 7(11) 445-451.
Simple Linear Regression Analysis
Table 6: ANOVA
Model Sum of
Squares Df Mean Square F Sig.
1
Regression 30,196 1 30,196 3,593 , 065b
Residual 369,739 44 8,403
Total 399,935 45
Constant: 35,167
Source: Primary data processed using SPSS Ver.23 for windows, 2020
Significant levels of trust, in this study the significant level used is 0.05 or 5%, meaning that the level
of trust or trustworthiness is 95 percent and the error rate is 5 percent.
Correlation coefficient
Correlation test is used to test whether there is a significant relationship between variable X
(welfare benefits) and variable Y (work performance) for more details, it can be seen in the table as
follows:
Relationship between Welfare Benefits and Work Performance
To determine the relationship and effect of welfare benefits on employee performance at PT. Bank
Panin Tbk in Makassar City, it can be seen in table 7 below:
Table 7: Model Summary
Model R R Square Adjusted R
Square Std. Error of the Estimate
1 , 275a , 076 , 054 2,89882
a. Predictors: (Constant), Welfare Benefits
Source: Primary data processed using SPSS Ver. 23 for windows, 2020
In table 7, it can be seen that the correlation coefficient (R) is 0.275, this shows that welfare benefits
have a moderate relationship to the work performance of employees at PT Bank Panin, Tbk.
Furthermore, the coefficient of determination (R2) shows that the value (R2) is 0.076 or 7.60%,
meaning that the welfare benefit variable contributes to the performance of employees at PT Bank
Panin, Tbk in Makassar City only 7.60%, while the remaining 92, 40%, influenced by other factors
that were not examined in this study such as supervision from the leadership, organizational
culture, work atmosphere, and so on.
DISCUSSION
The results showed that the welfare benefits received by employees at PT. Bank Panin, Tbk in
Makassar City were in the category quite well. In this case, it can be seen from the welfare allowance
itself that it is quite capable of fulfilling daily needs. Receiving welfare benefits that are fair and
constant at the time is a factor that can improve employee performance at work. This is consistent
with the respondent's answer that the receipt of allowances is given fairly. The rewind of a company
cannot be separated from the level of employee performance. Therefore, an award is given in the
form of an additional salary for employees so that they are motivated to further improve their
performance.
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The performance at PT. Bank Panin, Tbk in Makassar City is in a good category. In this case it is
supported by the quality and quantity of employees, working time and good cooperation.
One of the factors that is a requirement in order to have increased performance is that the employee
must have good quality and quantity in completing his work. In terms of quality, an employee must
be careful, disciplined and responsible in completing each job, while in terms of quantity, seen from
the number of jobs or tasks that can be produced by employees with the completion process on
time.
Furthermore, welfare benefits have a moderate relationship with employee performance, while the
effect of welfare benefits on employee performance is very small. This shows that PT. Bank Panin
Tbk in Makassar City must pay attention to and improve other factors besides welfare benefits in
improving employee performance.
CONCLUTION
The provision of welfare benefits to Bank Panin, Tbk in Makassar City is in quite well category. This
is viewed from the welfare benefits obtained by employees. The performance of the employees of
PT. Bank Panin, Tbk in Makassar City is in a good category by looking at the volume of work, quality
and quantity of employees, working time and good cooperation with colleagues.
Welfare benefits have a moderate relationship with employee performance, then the effect is
positive but not significant on employee performance at PT. Bank Panin, Tbk in Makassar City. This
means that employee performance is not only affected by welfare benefits but is more influenced
by other factors which are not investigated in this study.
RECOMMENDATION
The provision of welfare allowances is proven to have a small effect on employee performance, so
it is recommended that besides continuing to increase the provision of employee health allowances,
it is also recommended to pay attention to other factors that affect employee performance which
are not examined in this study such as work environment, leadership, motivation and so on.
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