The Effect of Islamic Compensation on Employee Performance Through Islamic Work Ethics in Islamic Boarding School Business in Gerbangkertasusila

Abstract

ABSTRACT

The Kopontren business unit is still not performing well, so it is necessary to explore factors that can improve Kopontren's performance, especially at the individual level. Related to this, this research aims to analyze the effect of Islamic compensation on Islamic work ethics, Islamic work ethics on employee performance, and Islamic compensation on employee performance in business ventures managed by Islamic boarding schools in Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo, Lamongan. The research method used is explanatory research in 15 Islamic boarding schools in Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo, and Lamongan. The sample consisted of 131 respondents. The independent variable used in the results of this study is given the notation X, namely: Islamic compensation (X). The intervening variable is Islamic work ethics (Z). Dependent variable employee performance (Y). Data collection techniques using questionnaires. The analysis technique used in this study is Structural Equation Modeling with the Smart PLS (Partial Least Square) program. The results show that financial compensation has a significant effect on Islamic work ethics, likewise, Islamic work ethics has a significant effect on employee performance for Kopontren employees, while financial compensation has no significant effect on the performance of Kopontren employees in GERBANGKERTASUSILA.