Research Paper
Year: 2020 | Month: January | Volume: 7 | Issue: 1 | Pages: 253-257
The Influence of Financial and Non-Financial Compensation on the Work Motivation of Harvest Workers in PT. Rizky Fajar Adi Putra
Muhammad Mahathir1, Abdul Rahim Matondang2, Rulianda Purnomo Wibowo2
1Postgraduate Students at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer at Universitas Sumatera Utara, Indonesia
Corresponding Author: Muhammad Mahathir
ABSTRACT
Work motivation is a driving force which creates one’s enthusiasm to work together, effectively and integrated to achieve goals. In order to accomplish a certain target, an organization must be able to motivate their employees, encouraging them to perform their duties. One of the approaches to motivate employees and increase the organization’s productivity is by providing financial and non-financial compensation. This research aims to analyse the influence of financial and non-financial compensation on the work motivation of harvest workers in PT. Rizky Fajar Adi Putra (PT. RFAP), and propose an effective solution to improve the low work motivation in PT. RFAP. The independent variables in this study are financial compensation and non-financial compensation. In addition, the dependent variable is work motivation. This study was conducted on 66 participants which are harvest workers in PT. RFAP and the data were collected using questionnaires. Based on the data, hypotesis were then tested using t-test. Results of this research demonstrates that financial compensation had a significant effect on employees’ work motivation. However, non-financial compensation is influential but does not show a significant effect on work motivation. Therefore, this indicates that higher financial compensation would increase the motivation of the workers.
Keywords: Financial Compensation, Non-Financial Compensation, Work Motivation
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