Determinants of Labor Productivity and Their Implications for Employee Compensation in the Banking Sector of Mataram City

Irwan Irwan; Luluk Fadliyanti; Subhan Purwadinata

doi:10.55681/economina.v5i8.4044

Authors

Irwan Universitas Mataram, Indonesia
Luluk Fadliyanti Universitas Mataram, Indonesia
Subhan Purwadinata Universitas Mataram, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i8.4044

Keywords:

Education; Work Experience; Digitalization; Workplace Facilities; Labor Productivity; Employee Compensation

Abstract

This study examines the effects of education, work experience, digitalization, and workplace facility support on employee compensation, with labor productivity as a mediating variable in the banking sector of Mataram City. An explanatory quantitative design involved 76 purposively selected respondents from a population of 240 employees at three banking institutions. Questionnaire data were analyzed using PLS-SEM with SmartPLS 4. The results show that education and workplace facility support have positive and significant effects on compensation, whereas work experience and digitalization have no significant direct effects. Labor productivity positively affects compensation and significantly mediates only the relationship between work experience and compensation. The model explains 65.4% of labor productivity variance and 53.1% of compensation variance, with Q² of 0.838.

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