Medan — A structured reward system significantly improves employee performance at the Road Maintenance and Drainage Operational Technical Implementation Unit (UPT OPJD) of Medan City, according to a 2026 study by Moch Eka Indrawan K, Muhammad Kelana Putra Sembiring, Ahmad Fuadi Lubis, Ruth Damayanty Solin, Ahmad Zunaedi Nst, and Supriadi from Universitas Islam Sumatera Utara.
The study highlights the strategic importance of workforce performance in infrastructure maintenance agencies responsible for road conditions and drainage systems that directly affect urban mobility and public service quality.
Public complaints regarding delays in infrastructure maintenance and service delivery have indicated the need for stronger human resource management strategies. The research identifies reward systems as one of the key drivers influencing employee productivity in government technical units.
The study involved all 38 employees of the Medan City Road Maintenance and Drainage Technical Unit using a quantitative explanatory research approach. Data were collected through questionnaires and analyzed using simple linear regression techniques.
Results show that the reward system has a positive and statistically significant effect on employee performance. The analysis produced a t-value of 3.546 with a significance level of 0.001, confirming that improvements in reward policies directly contribute to better work performance.
The reward system was found to explain 25.9 percent of employee performance variation, while the remaining influence comes from other factors such as leadership quality, work discipline, organizational culture, and motivation.
Employees generally assessed the existing reward system as moderately effective. Performance-based incentives, recognition from supervisors, and supportive workplace relationships were identified as the most influential elements.
Moch Eka Indrawan K from Universitas Islam Sumatera Utara explained that effective reward systems include both financial incentives and non-financial appreciation such as recognition, career opportunities, and professional support environments.
When employees perceive fairness and transparency in reward distribution, they tend to demonstrate stronger commitment, higher productivity, and improved service outcomes. Conversely, weak reward structures may reduce motivation and organizational efficiency.
The findings reinforce the importance of strengthening performance-based human resource policies within local government technical institutions. A well-designed reward system can enhance employee engagement while supporting better infrastructure service delivery.
For regional policymakers, the study provides practical evidence that transparent and equitable reward strategies can become a key instrument for improving public sector performance, particularly in infrastructure maintenance agencies serving urban communities.
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