Efektivitas Penilaian Kinerja Pegawai Dan Dampaknya Terhadap Reward Di Dinas Ketenagakerjaan Dan Transmigrasi Kabupaten Indragiri Hilir

Abstract

Employee performance appraisal is an important instrument in supporting the effectiveness of performance management and the provision  of performance-based rewards. This study aims to analyze the effectiveness of employee performance assessment and its impact on the provision of rewards at the Manpower and Transmigration Office of Indragiri Hilir Regency. This study uses a quantitative approach with a survey method on employees, where data is collected through questionnaires and analyzed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method. The results of the analysis showed that all indicators in the performance assessment and reward variables  met the criteria of validity and reliability. Structural model testing showed that performance assessment had a positive and significant effect on rewards with a path coefficient value of 0.850, a t-statistic value  of 28.122, and  a p-value of 0.000. The R Square value  of 0.723 indicates that performance appraisals are able to explain 72.3% of reward variations, while the rest is influenced by other factors outside of the research model. These findings indicate that the effectiveness of objective, measurable, and consistent performance appraisals has a strategic role in creating a fair and performance-based reward system. This research provides practical implications for local government agencies in strengthening employee performance assessment policies as a basis for providing rewards to improve motivation, accountability, and work quality.