THE EFFECT OF SALARY, ALLOWANCES AND WORK FACILITIES ON EMPLOYEE PERFORMANCE AT BANK JATIM DR. SOETOMO SURABAYA BRANCH

Abstract

This study analyzes the influence of salary (X₁), allowances (X₂), and work facilities (X₃) on employee performance (Y) at Bank Jatim Dr. Soetomo Surabaya Branch. Using a quantitative approach, data from 33 respondents (random sampling from a population of 125 employees) were analyzed through validity and reliability tests, multiple linear regression, and determinant coefficient testing. The results indicate that all three variables have a positive and significant effect—both partially and simultaneously—on employee performance. Analysis using the Business Model Canvas (BMC) reveals sustainability strategies related to the findings: investment in salary and facilities enhances employee productivity as a key resource, employee welfare serves as a retention attraction and competitive differentiator (Value Propositions), transparency in remuneration policies builds trust and engagement (Customer Relationships), optimal employee performance impacts service quality and increases bank revenue (Revenue Streams), and increased compensation budgets related to long-term operational efficiency (Cost Structure). The implications of this research encourage the reallocation of resources within the nine BMC blocks to create a sustainable employee-centric business model, where enhancing human resource quality acts as a catalyst for organizational growth. This study recommends integrating employee performance variables into the bank's business strategy to achieve both financial and non-financial objectives simultaneously.