The Effect of Competency Development on Employee Performance at the North Sumatra Human Resource Development Agency

Abstract

This study aims to examine the effect of Competency Development on Employee Performance at the North Sumatra Human Resource Development Agency, Indonesia. In the context of public sector governance, improving human resource capacity is essential to support organizational effectiveness and the achievement of institutional goals. Competency development is considered a critical factor in enhancing employees’ knowledge, skills, and professional attitudes, which directly contribute to improving their performance. Therefore, this study provides empirical evidence on how competency development improves employee performance in a public sector human resource development institution. A quantitative approach was employed using survey data collected from 50 respondents through a structured questionnaire. The validity and reliability of the research instrument were tested using Pearson’s correlation and Cronbach’s Alpha, confirming that all items were valid and reliable. Descriptive statistical analysis indicated that both competency development and employee performance were perceived at a moderate level, with mean scores of 20.3600 and 20.4400, respectively, and relatively consistent responses among participants. Furthermore, simple linear regression analysis and a t-test were conducted to test the research hypothesis. The results revealed that competency development has a positive and statistically significant effect on employee performance, with a significance value of 0.000 and a regression coefficient of 1.014. The coefficient of determination (R² = 0.991) indicates that 99.1% of the variance in employee performance can be explained by competency development. In addition, the high t-value (73.553) confirms a very strong relationship between the variables. These findings demonstrate that competency development plays a crucial role in improving employee performance. Strengthening competency development programs through continuous training, skill enhancement, and professional development initiatives can significantly enhance employee performance and overall organizational effectiveness in the public sector.