Building Sustainable Workforce Performance in Palm Oil Processing: Evidence from Competence, Commitment, and Incentive-Based Human Resource Practices
DOI:
https://doi.org/10.53905/Veritas.v2i02.5Keywords:
competence, organizational commitment, incentives, employee performance, palm oil mill, human resource managementAbstract
Purpose of the study: This study examined the effects of competence, organizational commitment, and incentives on employee performance at PT. Anderson Unedo, a palm oil mill located in Petapahan Tapung, Riau, Indonesia. The study was motivated by the strategic importance of human resource performance in palm oil processing, where operational efficiency, safety compliance, and productivity depend substantially on employee capability, motivation, and organizational attachment.
Methodology: A quantitative explanatory survey design was employed. Data were collected from 65 employees using a structured, validated questionnaire covering competence, organizational commitment, incentives, and employee performance, measured on a five-point Likert scale. The data were analyzed using descriptive statistics, validity and reliability tests, classical assumption tests, multiple linear regression, partial t-tests, a simultaneous F-test, and the coefficient of determination.
Results: Competence had a positive and significant effect on employee performance (β = 0.412, p = 0.001), organizational commitment had a positive and significant effect (β = 0.318, p = 0.014), and incentives also had a positive and significant effect (β = 0.276, p = 0.014). Simultaneously, the three independent variables significantly affected employee performance (F = 38.527, p < 0.001). The coefficient of determination indicated that competence, organizational commitment, and incentives explained 65.5% of the variance in employee performance (R² = 0.655).
Conclusions: Competence emerged as the most dominant predictor, followed by organizational commitment and incentives. Employee performance in palm oil mills can be improved through integrated human resource strategies that combine technical training, commitment-building practices, and fair, transparent incentive systems.
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