Influence of compensation procedural fairness and employee engagement on workforce agility and its impact on employee performance

Summary

The research paper, "Influence of Compensation Procedural Fairness and Employee Engagement on Workforce Agility and Its Impact on Employee Performance," authored by Ardian, D., Nurhayati, M., and Madris, M., and published in the International Journal of Applied Management and Business in August 2023, examines critical factors affecting employee performance. The primary objective of the study was to explore how compensation procedural fairness and employee engagement influence workforce agility, and consequently, their impact on employee performance within the BPS Sulawesi Barat Province. This study is particularly valuable as it focuses on a government data provider organization, offering crucial insights for planning and evaluation in a Volatile, Uncertain, Complex, and Ambiguous (VUCA) work environment. Methodologically, the study employed a causality associative research approach, utilizing Structural Equation Modeling with Partial Least Square (SEM-PLS) for its quantitative analysis. Descriptive analyses were also conducted using graphs and tables. The primary data for the research was collected from a sample of 139 respondents across various units of the BPS Sulawesi Barat Province. The findings revealed several significant relationships. The study concluded that both compensation procedural fairness and employee engagement have a substantial effect on employee performance. Importantly, the research highlighted that the impact of fairness in compensation procedures and employee engagement on performance is significantly strengthened when channeled *through* workforce agility. A notable and differentiating finding was that compensation procedural fairness, when considered in isolation, did not demonstrate a direct significant impact on employee performance, which contrasts with some existing literature. This implies that for compensation fairness to translate into improved performance, it needs to foster a more agile workforce. The study underscores the necessity of these elements in enabling organizations to respond effectively to modern workplace challenges.