Remuneration, Work Motivation, and Employee Performance in Gorontalo Hospitals

Junita Djodjohikrat; Sudarsono; Ikram Muhammad

doi:10.55657/iefj.v5i2.382

Authors

Junita Djodjohikrat Program Pascasarjana, Universitas Bina Mandiri Gorontalo, Indonesia
Sudarsono Program Pascasarjana, Universitas Bina Mandiri Gorontalo, Indonesia
Ikram Muhammad Program Pascasarjana, Universitas Bina Mandiri Gorontalo, Indonesia

DOI:

https://doi.org/10.55657/iefj.v5i2.382

Keywords:

Remuneration; Work motivation; Employee performance; Hospital; PLS-SEM

Abstract

This study examines the effects of remuneration on work motivation and employee performance and tests whether work motivation mediates the remuneration-performance relationship in two hospitals in Gorontalo City, Indonesia. A quantitative cross-sectional survey was conducted with 150 employees, comprising 75 respondents from Sitti Khadijah Hospital and 75 from Prof. Dr. H. Aloei Saboe Regional General Hospital. Data were collected using a five-point Likert questionnaire and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). Remuneration positively affected work motivation (β = 0.1083; t = 1.620; p = 0.0729) and employee performance (β = 0.0889; t = 1.435; p = 0.1049), but the effects were not significant. Work motivation had a positive and significant effect on performance (β = 0.2778; t = 5.157; p < 0.001). The indirect effect of remuneration on performance through motivation was not significant (β = 0.062; t = 1.444; p = 0.149), indicating no mediation. The model explained 13.33% of the variance in employee performance and 2.40% of the variance in work motivation. The novelty lies in showing that, across two hospitals with different organizational characteristics, remuneration alone did not explain employee performance, whereas motivation emerged as the stronger behavioral mechanism. The findings support integrated reward policies that combine fair and transparent remuneration with recognition, competency development, supportive leadership, and employee involvement.

References

Aflah, K. N., Suharnomo, S., Mas'ud, F., & Mursid, A. (2021). Islamic work ethics and employee performance: The role of Islamic motivation, affective commitment, and job satisfaction. Journal of Asian Finance, Economics and Business, 8(1), 997–1007. https://doi.org/10.13106/jafeb.2021.vol8.no1.997

Asadi-Aliabadi, M., Karimi, S. M., Tehrani-Banihashemi, A., Mirbaha-Hashemi, F., Janani, L., Babaee, E., Nojomi, M., & Moradi-Lakeh, M. (2022). Effectiveness of pay for performance to non-physician health care providers: A systematic review. Health Policy, 126(7), 592–602. https://doi.org/10.1016/j.healthpol.2022.03.007

Diaconu, K., Falconer, J., Verbel, A., Fretheim, A., & Witter, S. (2021). Paying for performance to improve the delivery of health interventions in low- and middle-income countries. Cochrane Database of Systematic Reviews, 2021(5), CD007899. https://doi.org/10.1002/14651858.CD007899.pub3

Dwianto, A. S., & Damanik, L. R. (2024). The mediating role of work motivation in the relationship between compensation, work environment, and employee performance at Medistra Hospital. Petra International Journal of Business Studies, 7(2), 145–157. https://doi.org/10.9744/petraijbs.7.2.145-157

Estrada, Y., & Mellita, D. (2024). Pengaruh remunerasi dan motivasi kerja terhadap kinerja pegawai perempuan di mediasi oleh kepuasan kerja di Rumah Sakit Bhayangkara (Moh. Hasan) Palembang. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 8(3), 3303–3315. https://doi.org/10.31955/mea.v8i3.4585

Flodgren, G., Eccles, M. P., Shepperd, S., Scott, A., Parmelli, E., & Beyer, F. R. (2022). An overview of reviews evaluating the effectiveness of financial incentives in changing healthcare professional behaviours and patient outcomes. Cochrane Database of Systematic Reviews, 2022(3), CD009255. https://doi.org/10.1002/14651858.CD009255

Gadsden, T., Jan, S., Sujarwoto, S., Kusumo, B. E., & Palagyi, A. (2021b). Assessing the feasibility and acceptability of a financial versus behavioural incentive-based intervention for community health workers in rural Indonesia. Pilot and Feasibility Studies, 7, 132. https://doi.org/10.1186/s40814-021-00871-7

Gadsden, T., Mabunda, S. A., Palagyi, A., Maharani, A., Sujarwoto, S., Baddeley, M., & Jan, S. (2021a). Performance-based incentives and community health workers' outputs, a systematic review. Bulletin of the World Health Organization, 99(11), 805–818. https://doi.org/10.2471/BLT.20.285218

Glenn, J., Moucheraud, C., Payán, D. D., Crook, A., Stagg, J., Sarma, H., Ahmed, T., Epstein, A., Luies, S. K., Rahman, M., Kruk, M. E., & Bossert, T. J. (2021). What is the impact of removing performance-based financial incentives on community health worker motivation? A qualitative study from an infant and young child feeding program in Bangladesh. BMC Health Services Research, 21, 979. https://doi.org/10.1186/s12913-021-06996-y

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE.

Hidayati, F., & Saimi, S. (2024). Nursing with heart: Analyzing the influence of motivation and remuneration in improving nurse performance at RSJ Mutiara Sukma. Science Midwifery, 12(1), 127–136. https://doi.org/10.35335/midwifery.v12i1.1422

Holtan, K. H., Halvari, A. E. M., Olafsen, A. H., Øvergård, K. I., & Halvari, H. (2024). The role of leadership in nurses' wellbeing and performance: A cross-sectional survey using a dual motivational pathway model. Journal of Advanced Nursing, 80(8), 3211–3225. https://doi.org/10.1111/jan.16084

Kovacs, R. J., Powell-Jackson, T., Kristensen, S. R., Singh, N., & Borghi, J. (2020). How are pay-for-performance schemes in healthcare designed in low- and middle-income countries? Typology and systematic literature review. BMC Health Services Research, 20, 291. https://doi.org/10.1186/s12913-020-05075-y

Lin, T. K., Werner, K., Witter, S., Alluhidan, M., Alghaith, T., Hamza, M. M., Herbst, C. H., & Alazemi, N. (2022). Individual performance-based incentives for health care workers in Organisation for Economic Co-operation and Development member countries: A systematic literature review. Health Policy, 126(6), 512–521. https://doi.org/10.1016/j.healthpol.2022.03.016

Nindyati, A. D., & Ulfia, N. (2024). The role of organizational justice as mediator in the relationship between Islamic work ethics and work engagement. Humanitas: Indonesian Psychological Journal, 21(1), 53–64. https://doi.org/10.26555/humanitas.v21i1.287

Rahmadani, R., Safitri, D., & Hartono, B. (2024). Pengaruh remunerasi terhadap motivasi kerja pegawai rumah sakit: Literatur review. Jurnal Medika Nusantara, 2(4), 102–111. https://doi.org/10.59680/medika.v2i4.1518

Ridlo, M., Rozaq, M. A., Saputra, Y., & Mochlasin, M. (2022). Moderation of Islamic work ethic variables on the influence of work environment, work motivation, work culture and compensation on employee performance. Management Analysis Journal, 11(1), 95–102. https://doi.org/10.15294/maj.v11i1.54793

Sudarsono, M. F., Masyurrosyidi, H., & Chalidyanto, D. (2021). Sistem remunerasi terhadap motivasi kerja dan kinerja perawat. Jurnal Keperawatan Silampari, 5(1), 115–124. https://doi.org/10.31539/jks.v5i1.1476

Sultan, & Peristiowati, Y. (2023). The influence of reward, work motivation on nurse performance in inpatient rooms. STRADA: Jurnal Ilmiah Kesehatan, 12(2), 177–185. https://doi.org/10.30994/sjik.v12i2.1009

Suriadi, S., Adhikara, M. F. A., & Andry, A. (2022). Pengaruh kompensasi dan lingkungan kerja terhadap kinerja perawat Rumah Sakit Cinta Kasih Tzu Chi dengan motivasi kerja sebagai variabel intervening. Jurnal Health Sains, 3(4), 639–652. https://doi.org/10.46799/jhs.v3i4.480

Tyas, R. A., & Meliala, A. (2023). Hubungan kepuasan kompensasi, motivasi kerja, dan kinerja perawat di RS Akademik UGM. Jurnal Manajemen Pelayanan Kesehatan, 26(4), 132–137. https://doi.org/10.22146/jmpk.v26i4.11031

Zhang, N., Xu, D., Li, J., & Xu, Z. (2022). Effects of role overload, work engagement and perceived organisational support on nurses' job performance during the COVID-19 pandemic. Journal of Nursing Management, 30(4), 901–912. https://doi.org/10.1111/jonm.13598