Incentive System Impact On Individual Performance Through Motivation In A Corporate University In Indonesia

Abstract

During the year of 2009 to 2014, the performance of a Corporate University in Indonesia stays in stagnancy at
moderate level. The stagnancy is showed by the result of employee’s satisfaction survey which rates at 61.2%
and employee’s performance at 60.43%. This figure shows the contradiction of the incentive purposes that
expected to stimulate the performance of the employees.
The aim of this research is to measure the effect of incentive system towards employee’s motivation, the effect
of motivation towards employee’s performance, and the effect of incentive system directly towards employees’
performance in a Corporate University. The data process uses SPSS 20 and analyse it by using multiple
regression. The sample of this study is 149 out of 224 population. The data is collected by using questionnaire
which consists of 55 items including statements of incentive system, motivation, and individual performance.
The result of this study shows that incentive system has positive and significant impacts towards employees
motivation. Employees motivation positively and significantly impacts on employees performance. While
incentive system has no significant impact directly towards employees performance in a Corporate University
in Indonesia.
Therefore, a corporate university should consider incentive system as a motivator factor in influencing
employees performance. The management of corporate university should create attractive incentive system
that will motivate employees. It is suggested that a Corporate University evaluating the current incentive system.
The incentive system not only focus on financial incentive but also taking into account non financial benefits.