The Influence of Incentive and Motivation to the Employee

Performance Indihome Sales at PT. Telkom Indonesia Tbk,

Pematangsiantar

Siti Haviza Nasution and Onan Marakali Siregar

Faculty of Social and Politic, Universitas Sumatera Utara, Medan City, Sumatera Utara, 20222, Indonesia

Keywords: Employee Performance, Incentive, and Motivation

Abstract: The success of a company is strongly influenced by the performance of its employees, so the company must

improve its performance. Many factors affect employee performance, including incentives and motivation.

Incentives and motivation are very important in improving employee performance because they can

encourage someone to do work to achieve maximum performance results. The purpose of this research is to

determine and analyze the effect of incentives on employee performance, the effect of motivation on employee

performance, and the effect of incentives and motivation on the performance of sales Indihome employees

at PT. Telkom Indonesia Tbk, Pematangsiantar City. The first hypothesis examines whether incentive

influences employee performance. The second hypothesis examines whether motivation influences

employee performance. The third hypothesis examines whether employee performance is the moderating

variable in the relationship between incentive and motivation. The populations in this research are all

employees of sales Indihome PT. Telkom Indonesia Tbk, Pematangsiantar City, a total of 50 peoples. This

research uses a non- probability sampling technique with the kind of saturated samples. Data were collected

using a survey method and then analyse by using multiple linear regression. The results of the research

conducted indicate that incentive has a significant effect of employee performance, motivation has a

significant effect of employee performance and the employee performance has a significant effect of

incentive and motivation.

1 INTRODUCTION

Facing the era of globalization and also the condition

of society that continues to develop, it is often found

that many companies experience various problems

that fail companies to be able to continue to develop

and compete in running their businesses. This

happens because it is caused by the company's

inability to adapt to technological advances and

caused by the lack of good performance of human

resources owned by the company, even though it must

be realized that humans are one of the important

factors that determine the success of the company in

achieving its goals. Human resources in the company

need to be managed professionally to realize a

balance between the needs of employees and the

demands and capabilities of the company's

organization. The company is required to create good

employee performance in the development of the

company. The success of a company is strongly

influenced by the performance of its employees, so

the company needs to improve its performance.

According to Mangkunegara (2020) performance is

the result of the quality and quantity of work done by

employees when performing tasks following the

responsibilities given. The active role of employees is

very important especially in the relationship between

colleagues, both with superiors and with subordinates

to produce more effective company performance.

Motivating employees by paying attention,

such as providing incentives, praise, and so on will

affect their performance and will motivate them to

produce performance results that are in accordance

with the company's wishes. This of course also

applies to PT. Telkom Indonesia Tbk.

One way that can trigger the increase in the

quality of employee performance is through the

provision of incentives. According to Almaududi et al

(2021: 98) incentives are an encouragement to

someone to work well and can achieve maximum

levels of performance to revive the passion and

Nasution, S. and Siregar, O.

The Inﬂuence of Incentive and Motivation to the Employee Performance Indihome Sales at PT. Telkom Indonesia Tbk, Pematangsiantar.

DOI: 10.5220/0011565900003460

In Proceedings of the 4th International Conference on Social and Political Development (ICOSOP 2022) - Human Security and Agile Government, pages 271-276

ISBN: 978-989-758-618-7; ISSN: 2975-8300

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

271

motivation of an employee. Incentives can be in the

form of bonuses, commissions or award charters, and

so on to employees in return for services for the work

carried out and as a motivator for the implementation

of activities in the future. In addition to incentives,

motivation can also improve employee performance.

According to Arianto and Kurniawan (2020: 315),

motivation is the process of influencing or

encouraging people to meet their various needs by

directing the ability of a person to want to work

productively and actively in working optimally

following his duties and obligations. So, if the

company can understand the problem of employee

motivation and overcome it, the company will get

optimal employee performance and comply with the

specified standards. For this reason, the company is

expected to be able to make efforts that will increase

work motivation in employees.

Performance of Sales Indihome PT. Telkom

Indonesia Pematangsiantar City is not good, because

the sales of Indihome products in 2021 are fluctuating

this can be seen from the sales data of Indihome

products in 2021 which experienced instability

selling Indihome products. This is due to the small

incentives obtained by employees and work

motivation that has not been given by the company

following the needs of Sales Indihome PT. Telkom

Indonesia Pematangsiantar City. Based on what

happens in the field, there are problems that occur in

the performance of employees in the marketing

sector, namely Indihome sales that market Indihome

products. The instability of indihome product sales in

2021 is of course caused by certain factors that

certainly have problems in sales performance that

occur at PT. Telkom Indonesia, Pematangsiantar

City. Based on the results of the pre-study conducted

by researchers, it was found that the incentives

provided by PT. Telkom Indonesia Witel Sumut

Pematangsiantar City to employees has not been

carried out properly, because the implementation of

incentives materially and non-materially at PT.

Telkom Indonesia Witel Sumut Pematangsiantar City

has not been satisfied by most salespeople. The

provision of incentives is still classified as not

following the expectations of sales so that there is

dissatisfaction felt by sales which is one of the main

causes of instability in the performance of salespeople

in selling Indihome products.

In addition to incentives, employee motivation

to work is also not fulfilled by the motivation needed

by employees such as recognition of employee

performance that has not been fully felt by all

employees that this makes employees not serious

about work and greatly affects employee

performance. Employee performance is low at work,

it can be seen that employee performance is still not

in line with leadership expectations.

Based on the description above (1) How there is

an influence on the incentive on the performance of

Sales Employees of Indihome PT. Telkom Indonesia

Pematangsiantar City? (2) How there is a motivating

influence on the performance of Sales Employees of

Indihome PT. Telkom Indonesia Pematangsiantar

City? (3) How there is an influence of incentives and

motivation on the performance of Sales Employees of

Indihome PT. Telkom Indonesia Pematangsiantar

City?

2 LITERATURE REVIEW

Incentives

According to Almaududi et al (2021: 98) incentives

are an encouragement to someone to work well and

can achieve maximum levels of performance to revive

the passion and motivation of an employee.

According to Mujanah (2019: 61-62), the indicators

of this incentive are divided into two broad groups,

namely:

1. Material Incentives

2. Non-Material Incentives

Motivation

According to Arianto and Kurniawan (2020: 315),

motivation is the process of influencing or

encouraging people to meet their various needs by

directing the ability of a person to want to work

productively and actively in working optimally

following his duties and obligations. According to

Herzberg (Sutrisno, 2012: 121), motivational

indicators consist of several, namely:

1. Achievement.

2. Recognition.

3. The Work It Self.

4. Responsibility.

5. Progress ( advancement ).

Performance

According to Mangkunegara (2020) performance is

the result of the quality and quantity of work done

by employees when performing tasks following the

responsibilities given. According to Miner (Sutrisno

2010:172-173), the indicators of employee

ICOSOP 2022 - International Conference on Social and Political Development 4

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performance are:

1. Quality

2. Quantity

3. Working time

4. Cooperartion

3 RESEARCH METHOD

This study uses the associative method with a

quantitative approach. The primary data collection

techniques are used in questionnaire form, and

secondary data collection by studying books, related

literature, and documents. The analytical method

used is the quantitative analysis by moderated

regression analysis and simple linear regression. The

populations in this research are all employees of sales

Indihome PT. Telkom Indonesia Tbk,

Pematangsiantar City, a total of 50 peoples. This

research uses a non-probability sampling technique

with the kind of saturated samples.

4 RESULT AND DISCUSSION

4.1

Validity and Reliability Test

Validity test is one of the instruments used to

determine whether or not a research instrument is

valid. To determine the validity of each statement, it

can be known through the rcount > rtable (0.2787).

Reliability test is a tool to measure indicators of

variables. If the Croanbach alpha score > 0.6 then the

instrument used in the study can be said to be reliable

or reliable.

Table 1. Results of Validity and Reliability Tests.

Variable

Validity

Test

Cronbach'

s Alpha

Meaning

Incentuve Vali

,876 Reliable

Motivation Vali

,934 Reliable

Employee

Performance

Valid ,828 Reliable

Based on table 1. It is known that all variables are

declared valid and have a value of cronbach's alpha

> 0.6 then it is stated that the instrument in this study

is reliable to use.

4.2 Normality Test

The Kolmogorov-Smirnov test was conducted to

determine whether the distribution of a data was

normal. Whether or not the data distribution is normal

can be seen from the significance value obtained, if

the sig value > 0.05 then the data can be said to be

normally distributed.

Table 2. Result of Kolmogorov-Smirnov Test.

Kolmogorov-Smirnov . Normality Test

One-Sample Kolmogorov- Smirnov Test

asymp. Sig. (2-tailed) .200c,d

In table 2. the value obtained through the

Kolmogorov-Smirnov test was found to be 0.200.

Based on the provisions, this value exceeds the

specified limit value to be able to say that the data is

normally distributed, namely 0.05. So it can be said

that the data obtained in this study are normally

distributed and fully the assumptions of the normality

test.

4.3 Multiple Linear Regression

Multiple linear regression analysis aims to calculate

the magnitude of the effect of two independent

variables on a dependent variable.

Table 3. Result of Multiple Linear Regression.

Model

nstandardize

Coefficients

tandardize

Coefficients

B Std. Erro

Beta

1 (Constant) 10,308 2,420

Incentive ,309 ,147 ,293

Motivation ,249 ,066 ,527

Based on the results of multiple regression

processing shown in table 4.55, the multiple

regression equation is obtained as follows:

Y= 10,308 + 0.309X1 + 0.249X2 + e

Based on the above equation, it can be explained,

namely:

1. Constant (a) = 10.308 means, if the independent

variable (free) i.e. incentives and motivation = 0

then the performance of Sales employees of

Indihome PT. TELKOM Indonesia Tbk,

Pematangsiantar City will be 10,308.

2. The regression coefficient of variable X1 (b1) =

0.309 indicates that incentives (X1) have a

positive effect on employee performance

(Y) sales of Indihome PT. Telkom

Indonesia Tbk, Pematangsiantar City. This

The Inﬂuence of Incentive and Motivation to the Employee Performance Indihome Sales at PT. Telkom Indonesia Tbk, Pematangsiantar

273

value also shows that every effort to add

one unit to the incentive, then the

performance of Sales Employees of

Indihome PT. Telkom Indonesia Tbk,

Pematangsiantar City will increase by 0.309

units.

3. Variable regression coefficient X2 (b2) = 0.249

indicates that motivation (X2) has a positive

effect on the performance of Sales Employees of

Indihome PT. Telkom Indonesia Tbk,

Pematangsiantar City. This value also shows

that every effort to add one unit to motivation,

then the performance of Sales Employees of

Indihome PT. Telkom Indonesia Tbk,

Pematangsiantar City will increase by 0.249

units.

Based on the results of the regression analysis, it

can also be known that the most dominant factor

affects employee performance, namely the incentive

variable (X1) with a regression coefficient value of

0.309 then followed by a motivation variable (X2)

with a regression coefficient value of 0.249.

4.4 Partial Test

T test was conducted to determine the effect of one

independent variable on one dependent variable. In

the partial significance test, the significance level

used is 0.05 or 5% (two tailed test) or a two-way test

with degrees of freedom df = nk = 47, so that the

Ttable value is 2,011.

Table 4. Result of T Test.

Model

Sig.

(Constant) 4,259 ,000

Incentive 2,095 ,042

Motivatio

3,765 ,000

Based on table 4. It is known that the incentive

(X1) variable on employee performance (Y) obtained

a tcount value of 2,095 > 2,011 with a significance

level of 0.042 < 0.05. This shows that variable

Incentive (X1) has a significant effect on Employee

Performance (Y) variable.

In the Motivation variable (X2) on Employee

Performance (Y), the tcount value is 3,765 < 2,011

with a significance level of 0.00 < 0.05. This shows

that Motivation (X2) variable has significant effect

on Employew Performance (Y) variable.

4.5 Simultaneous Test

Test F carried out to knowing is the entire variable the

independent that is Incentive (X1) and Motivation

(X2) have influence the significant or not to variable

dependent, that is Employee Performance Y).

Table 5. Result of F Test.

ANOVA

Model

Sum of

Squares

Mean

Square

Sig.

Regression 600,488 2 300,244 34,399 ,000

Residual 410,232 47 8,728

Total 1010,720 49

a. Dependent Variable: Employee Performance

. Predictors: (Constant), Incentive, Motivation

Based on the results of the table 5. can be known

that the value of significant of influence Incentive and

Motivation simultaneous on variable Employee

Performance is 0.000 < 0.05 and the value of Fcount

is 34,399 > 3.20.

The results show that all of independent variables,

that are Incentive and Motivation are have

simultaneous effect to dependent variable, that is

Employee Performance.

4.6 Determination

The coefficient of determination used is the value of

R Square because it is more trustworthy in

evaluating regression models. From the

determination coefficient testing process that has

been done obtained a summary of the results as seen

in the following Table:

Table 6: Determination Coefficient Table

Type R R Square Adjusted

Square

Error of

the Estimate

1 .771a .594 .577 2.954

From the table, it is known that the value of

Adjusted R Square is 0.577. This means 57.7% of

employee performance (Y) sales of Indihome PT.

TELKOM INDONESIA Tbk, Pematangsiantar City

can be affected by incentive variables (X1) and

motivation (X2). The remaining 42.3% were

influenced by other factors not studied in the study.

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4.7 Discussion

1. Influence of Incentives on The Performance

of Sales Employees indihome PT. Telkom

Indonesia Pematangsiantar City

The incentive is an encouragement to a person to

work well and can achieve maximum performance

levels so as to revive the passion and motivation of

an employee (Almaududi et al 2021: 98). Based on

the results of the t-Test, shows that there is a partial

and significant influence between incentives (X1) on

employee performance (Y) and a significance level

of 0.042 < 0.05. It can be concluded that incentives

have a significant effect on employee performance.

2. The Influence of Motivation on the

Performance of Sales Employees in Indihome

PT. Telkom Indonesia Pematangsiantar City

Motivation is the process of influencing or

encouraging people to meet their various needs by

directing a person's ability to want to work

productively and actively in working optimally in

accordance with their duties and obligations

(Arianto and Kurniawan 2020: 315). Based on the

results of the t-Test, shows that there is a partial

and significant influence between

motivation (X2) on employee performance (Y) and

a significance level of 0.000 < 0.05. It can be

concluded that incentives have a significant effect

on employee performance.

3. The Effect of Incentives and Motivation on

the Performance of Sales Employees

inDihome PT. Telkom Indonesia

Pematangsiantar City

Employee performance is the achievement of

employee work according to the standards and

objectives of the organization/company (Damara

and Indahingwati 2019). Based on the results of the

research conducted, in the F-Test (Simultaneous

Significant Test), the incentive variable (X1) and the

motivation variable (X2) have a Fghicount value of

34,399 with a Ftabel value of 3.20 which means

Fcount>Ftabel. Meanwhile, the significant level is

0.000, which means it is also lower than 0.05 so it

can be concluded that the incentive variable (X1)

and the motivation variable (X2) together

(simultaneously) have a positive and significant

effect on employee performance (Y) Sales Indihome

PT. Telkom Indonesia Tbk, Pematangsiantar City.

This indicates that on the F-Test Ha is accepted.

5 CONCLUSIONS

And discussion of research findings indicated

various conclusions relating to:

1. Incentives partially have a positive and

significant effect on the performance of Sales

Employees of Indihome PT. Telkom Indonesia

Tbk, Pematangsiantar. With these results, H1 is

accepted. The more incentives are given, the

better employee performance.

2. Motivation partially affects a positive and

significant effect on the performance of Sales

Employees of Indihome PT. Telkom Indonesia

Tbk, Pematangsiantar. With these results, H2 is

accepted. The more motivations are given, the

better the performance of employees.

3. Incentives and motivation simultaneously have

a significant effect on the performance of Sales

Employees of Indihome PT. Telkom Indonesia

Tbk, Pematangsiantar. With these results, H3 is

accepted. The results of the determination

coefficient value indicate that the relationship

formed is quite close, thus incentives and

motivation can make employee performance

better.

6 SUGGESTIONS

1. The Company is expected to consider increasing

the number of incentives given to Sales

Employees of Indihome PT. Telkom Indonesia

Tbk, Pematangsiantar.

2. The sales Marketing Officer is expected to

increase motivation in the company, by

streamlining the role of superiors in providing

additional amounts of incentives, directions,

guidance, instructions, and evaluations related

to the implementation of tasks and work to

realize the sales performance of Indihome PT.

Telkom Indonesia Tbk, Pematangsiantar is

better than before.

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