The Effect of Incentives and Extrinsic Motivation on Employee Performance at PT Isuto Sukses Jaya, West Jakarta

Providing incentives (such as bonuses, commissions, or financial rewards) can serve as a direct stimulus for employees to work harder; employees tend to increase their effort and productivity because there is a tangible reward to be gained from their work. Similarly, extrinsic motivation—manifested through company policies, supervision, and reward systems—can foster greater discipline and a sense of responsibility regarding their work. This study aims to analyze the impact of incentive provision and extrinsic motivation on employee performance at PT Isuto Sukses Jaya. The study was prompted by observed fluctuations in employee productivity, suspected to be influenced by a suboptimal incentive distribution system and factors external to the work environment (extrinsic motivation). A quantitative approach was employed, involving 56 respondents who are employees of PT Isuto Sukses Jaya in West Jakarta. Data were collected via questionnaires and analyzed using SPSS Version 27. The t-test results for incentive provision showed a significance value of 0.077 (> 0.05) and a t calculated value lower than the t-table value (1.800 < 2.006), indicating that, in isolation, incentive provision does not significantly affect employee performance. Conversely, extrinsic motivation showed a significance value of 0.013 (< 0.05) and a t-calculated value higher than the t-table value (2.559 > 2.006), indicating a positive and significant effect on employee performance. The F-test yielded a significance value of 0.000 (< 0.05) with an F-calculated value exceeding the F-table value (14.995 > 3.17), confirming that the two independent variables incentive provision and extrinsic motivation simultaneously exert a significant influence on employee performance. The coefficient of determination (R-squared) was found to be 0.361, indicating the explanatory power of the predictor variables and the sample used.