Beyond Pay and Leadership: The Work Environment as the Dominant Predictor of Employee Performance in a Private Hospital
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Nov 14, 2026
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Abstract
Employee performance is a critical determinant of hospital service quality. This study examines the association of remuneration policy, leadership effectiveness, and work environment with employee performance at Cakra Husada General Hospital, Klaten. A quantitative, cross-sectional associative design was used, with survey data from 179 employees recruited through consecutive non-probability sampling based on predefined eligibility criteria. The data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that the work environment has a positive and significant effect on employee performance, whereas remuneration policy and leadership effectiveness have no significant partial effects. Together, the three variables explain a moderate proportion of the variance in employee performance. Because the design is cross-sectional and the sample was not randomly drawn, the findings are interpreted as statistical associations and not as proof of causation. The findings suggest that hospital management should prioritise improving physical and psychosocial working conditions, while treating remuneration and leadership as supporting conditions whose influence may operate indirectly.
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
LPPM Politeknik Piksi Ganesha Indonesia
How to Cite
Made Sumiarta, & Sotya Partiwi Ediwijoyo. (2026). Beyond Pay and Leadership: The Work Environment as the Dominant Predictor of Employee Performance in a Private Hospital. Jurnal E-Bis, 10(2), 1149-1166. https://doi.org/10.37339/e-bis.v10i2.3518
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Alfiah, & Astutik, W. (2020). Pengaruh gaya kepemimpinan dan kompensasi terhadap kinerja. Jurnal Aplikasi Manajemen dan Inovasi Bisnis, 2(2), 21–33. https://doi.org/10.47201/jamin.v2i2.48
Armstrong, M., & Taylor, S. (2023). Armstrong’s handbook of human resource management practice. Kogan Page.
Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273–285. https://doi.org/10.1037/ocp0000056
Curado, C., & Santos, R. (2022). Transformational leadership and work performance in health care: The mediating role of job satisfaction. Leadership in Health Services, 35(2), 160–173. https://doi.org/10.1108/LHS-06-2021-0051
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hasan, A. A., Ahmad, S. Z., & Osman, A. (2023). Transformational leadership and work engagement as mediators on nurses’ job performance in healthcare clinics: Work environment as a moderator. Leadership in Health Services, 36(4), 537–561. https://doi.org/10.1108/LHS-10-2022-0097
Hasibuan, Y. R., Ridhaningsih, F., & Putri, Y. (2023). Kinerja pegawai ditinjau dari kompetensi, kompensasi, motivasi kerja, dan disiplin kerja (Studi kasus pada pegawai RSUD Dr. Rasidin Padang). Jurnal Manajemen Strategi dan Simulasi Bisnis (JMASSBI), 4(1), 52–71.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Herman, & Saiful. (2023). The effect of work environment, organizational commitment and compensation on employee performance at Aisyiyah St. Khadijah, Pinrang District. Economics and Business Journal, 1(2).
Kılıç, M., Uslukılıç, G., & Yaman, S. (2023). The effect of the hospital working environment on the work limitation of the employees in Turkey: A multivariable analysis. BMC Health Services Research, 23. https://doi.org/10.1186/s12913-023-09356-0
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS-SEM: The inverse square root and gamma-exponential methods. Information Systems Journal, 28(1), 227–261. https://doi.org/10.1111/isj.12131
Marhalinda, & Supiandini, A. (2022). Pengaruh work life balance, lingkungan kerja dan kompensasi terhadap loyalitas karyawan pada Rumah Sakit Khusus Daerah (RSKD) Duren Sawit. Jurnal Ikraith-Ekonomika, 5(3), 98–107.
Memon, M. A., Ting, H., Cheah, J.-H., Thurasamy, R., Chuah, F., & Cham, T. H. (2020). Sample size for survey research: Review and recommendations. Journal of Applied Structural Equation Modeling, 4(2), i–xx. https://doi.org/10.47263/JASEM.4(2)01
Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539–569. https://doi.org/10.1146/annurev-psych-120710-100452
Rahman, G. S. (2025). Pengaruh implementasi kebijakan remunerasi terhadap kinerja pegawai di Pengadilan Tinggi Agama Bandung. Jurnal Ilmu Administrasi Negara, 22(02), 81–92.
Robbins, S. P., & Judge, T. A. (2025). Essentials of organizational behavior (Global ed., 16th ed.). Pearson Education.
Schaufeli, W. (2021). Engaging leadership: How to promote work engagement? Frontiers in Psychology, 12, Article 754556. https://doi.org/10.3389/fpsyg.2021.754556
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
Suriadi, S., Adhikara, M. F. A., & Andry, A. (2022). Pengaruh kompensasi dan lingkungan kerja terhadap kinerja perawat Rumah Sakit Cinta Kasih Tzu Chi dengan motivasi kerja sebagai variabel intervening. Jurnal Health Sains, 3(4).
Vindu, R. (2024). Influence of workplace environment, occupational health and safety, and organizational dedication on nurse performance. Safety and Health for Medical Workers, 1(1), 21–28. https://doi.org/10.69725/shmw.v1i1.21
Vroom, V., Porter, L., & Lawler, E. (2015). Expectancy theories. In Organizational behavior 1.3 (pp. 94–113).
Widiastutik, N., Rahayu, M., & Juwita, H. A. J. (2022). Effect of remuneration and job rotation on employee performance with job satisfaction as a mediation variable. International Journal of Research in Business & Social Science, 11(6), 175–183.