Keywords
Employee Performance
Generation Z
How to Cite
Abstract
Financial compensation has long been regarded as one of the factors influencing employee performance. However, previous studies have reported inconsistent findings, particularly among Generation Z employees, who possess different characteristics and work preferences compared to earlier generations. This study aimed to examine the effect of financial compensation on employee performance among Generation Z employees at PT X. A quantitative approach with a causal associative research design was employed. The study population consisted of 40 Generation Z employees at PT X, all of whom were selected as the research sample using a saturated sampling technique. Data were collected using the Pay Satisfaction Questionnaire (PSQ) to measure financial compensation and the Individual Work Performance Questionnaire (IWPQ) to measure employee performance. Data were analyzed using simple linear regression with JASP version 0.96.0.0. The results indicated that financial compensation did not have a significant effect on employee performance (β = -0.241, p = 0.134). The coefficient of determination (R² = 0.058) indicated that financial compensation explained only 5.8% of the variance in employee performance. Employee performance among Generation Z employees was influenced not only by financial compensation but also by other more dominant factors. These findings highlight the importance of implementing human resource management strategies that integrate both financial and non-financial aspects to improve employee performance among Generation Z.References
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