Investigating the Effect of Promotion and Incentives on Employee Performance

Abstract

Promotion is one part of the placement program implemented by the company. Employee placement is done to make adjustments to the company's needs to get the right person in the right position This study aims to investigate the effect of promotion and incentives on employee performance. 35 samples from PT Sejahtera Buana Trada Lippo Cikarang – Indonesia is determined using the saturated sampling method. Data is analyzed by applying multiple linear regression analysis.  The results show that both partially and simultaneously, promotion and incentives have a positive and significant effect on employee performance. The coefficient of determination shows that 33.1% of employee performance is affected by promotion and incentives. Based on the results of the study, managerial implications can be developed (1) to improve employee performance, the company should provide promotion for outstanding employees and loyalty to the company; (2) incentives should be given to employees who are disciplined and loyal to the work and company; and (3) employee performance should be improved especially in the services and good cooperation by all parties.