The Effect of Competence on Employee Performance at PT Permodalan Nasional Madani Medan Branch

Abstract

This study aims to analyze the effect of competence on employee performance at PT Permodalan Nasional Madani (PNM) Medan Branch. Competence is considered an important factor in improving employee performance because it reflects employees’ knowledge, skills, and work attitudes in carrying out their responsibilities effectively. This study used a quantitative approach with an associative research design. The population consisted of all employees of PT Permodalan Nasional Madani Medan Branch, totaling 50 employees. The sampling technique used was saturated sampling, in which all employees were selected as research respondents. Data were collected through questionnaires using a Likert scale and analyzed using simple linear regression with Jamovi statistical software. The results showed that competence has a positive and significant effect on employee performance. The regression analysis indicated that competence significantly improves employee productivity, work quality, and effectiveness in completing tasks. The t-test results showed a significance value lower than 0.05, indicating that the proposed hypothesis was accepted. The findings of this study indicate that improving employee competence through training and skill development programs is important in supporting organizational performance. Therefore, organizations are expected to continuously develop employee competencies in order to maintain and improve employee performance.