The Effect of Employee Competence on Employee Performance at the Department of Public Works and Spatial Planning of North Sumatra Province

Abstract

This study investigates the influence of employee competence on employee performance at the Department of Public Works and Spatial Planning of North Sumatra Province. A total of 45 employees participated, and data were analyzed using descriptive statistics, validity and reliability testing, simple linear regression, and hypothesis testing with SPSS version 25. The descriptive results indicate that both employee competence (M = 4.68; SD = 0.36) and employee performance (M = 4.74; SD = 0.43) are perceived at high levels, reflecting a workforce with well-developed skills and consistently strong performance. Validity and reliability tests confirmed that all research instruments were valid and reliable, with Cronbach’s Alpha values exceeding the threshold. The regression analysis demonstrates that employee competence has a significant positive effect on employee performance, with a regression coefficient (B = 1.172), standardized Beta (0.761), and t-value (9.482), indicating strong predictive power. This suggests that for every one-unit increase in employee competence, employee performance is expected to rise by approximately 1.17 units. The coefficient of determination (R² = 0.580; Adjusted R² = 0.689) shows that 58.0% of the variance in employee performance is explained by employee competence, while the remaining 42.0% is influenced by other factors such as motivation, supervision, and organizational culture. The findings highlight employee competence as a dominant predictor of performance in the public sector, emphasizing the importance of developing technical skills, knowledge, and professional abilities to enhance efficiency, productivity, and service quality. These results provide practical implications for policymakers and HR managers in designing competency development programs and performance management strategies in governmental institutions.