Why this research matters
Indonesia is advancing bureaucratic reform across government institutions, including Statistics Indonesia (BPS), the agency responsible for producing official data used in national and regional policymaking. Performance pressures are high, particularly in regional offices that manage extensive fieldwork and strict deadlines. Against this backdrop, policymakers are debating the single salary system, a reform designed to integrate base pay and allowances into one transparent structure based on job value and performance.
While compensation reform is expected to enhance fairness, evidence on whether it actually boosts performance has been mixed. Psychological factors—especially self-efficacy, or an employee’s belief in their capacity to complete tasks—are increasingly recognized as decisive. This study brings both strands together, offering timely insight for public-sector managers.
How the study was conducted
The research used a quantitative, census-based design involving all 39 civil servants working at the BPS–Statistics Office of Langkat Regency. Data were collected through structured questionnaires, supported by interviews and documentation review.
To examine relationships among variables, the authors applied Structural Equation Modeling using Partial Least Squares (SEM-PLS). In simple terms, this method tests how strongly factors such as the planned single salary system and self-efficacy influence job satisfaction and employee performance, both directly and indirectly.
Key findings at a glance
The analysis produced several clear results:
- Job satisfaction did not significantly mediate the relationship between the single salary system and performance.
- Job satisfaction did mediate the relationship between self-efficacy and performance, strengthening the impact of personal confidence on results.
Statistically, the model explained 91.5 percent of performance variation, indicating a very high predictive capacity.
What the results mean in practice
The findings send a clear message to public-sector leaders: pay reform alone is not enough. While a fair and transparent salary system directly improves performance, its indirect effect through job satisfaction is limited unless employees fully understand and trust how the system works.
By contrast, self-efficacy emerges as a critical performance engine. Employees who believe they can manage workloads, adapt to new systems, and meet operational standards not only perform better but also feel more satisfied with their jobs—creating a virtuous cycle.
As the authors note, “Improving employee performance is not solely dependent on compensation policy. Psychological factors, especially self-efficacy supported by job satisfaction, play a substantial role in shaping sustainable performance.” This insight is attributed to M. Ikmal Husein Lubis and colleagues from the Faculty of Economics and Business, Universitas Sumatera Utara.
Implications for policy and management
For Statistics Indonesia (BPS) and other government agencies, the study highlights several actionable points:
These insights are especially relevant for public institutions facing high service demands, limited resources, and increasing accountability.
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