The Influence of Digital Technology use and Additional Employee Income on Employee Performance Mediated by the use of the E-Performance Application in Sub-District Offices in Pidie Regency

Abstract

This study aims to analyze the influence of the use of digital technology and additional employee income on employee performance by using the E-Performance application as a mediation variable in sub-district offices throughout Pidie Regency. The background of this research is based on the problem of low discipline and performance of some employees, even though digital technology support and additional employee income have been provided. This study uses a quantitative approach with a survey method. The research population was all employees of the sub-district office in Pidie Regency, with a sample of 200 respondents selected using the purposive sampling technique. Data analysis was carried out using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results of the study show that (1) the use of digital technology has a positive and significant effect on employee performance and the use of the E-Performance application, (2) additional employee income has a positive and significant effect on employee performance and the E-Performance application, (3) the E-Performance application has a positive and significant effect on employee performance, and (4) the E-Performance application mediates the influence of digital technology and additional employee income on employee performance. This study concludes that the use of technology and incentive policies will be more effective if supported by an objective and integrated application-based performance appraisal system.