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ANALYSIS OF THE PERFORMANCE MODEL OF AIR TRAFFIC
CONTROLLERS (ATC) AT AIRNAV INDONESIA BALIKPAPAN BRANCH
Linda Chandler Maramis Sunarto
1*
, Amir Fikri
2
, Shine Pintor Siolemba Patiro
3
Indonesia Open University Master of Management Graduate School, Indonesia
1,3
Trisakti University, Jakarta, Indonesia
2
linda.chandler@airnavindonesia.co.id
1
, [email protected]
2
, [email protected]
3
ABSTRACT
As professionals who ensure the safe and efficient operation of air navigation in a specific air space, Air
Traffic Controllers (ATC) shall possess maximum performance since their responsibility is related to the
safety of many human lives. The purpose of this study is to analyze the factors affecting the behavior of
the Air Traffic Controller (ATC) performance model on duty at Airnav Indonesia branch Balikpapan.
This research is quantitative and explorative research conducted on all populations of 38 active ATC
working in air navigation service provider (ANSP) in Airnav Indonesia Balikpapan for six months from
March to August 2022. Data was collected by distributing questionnaires to 38 respondents and
conducting 38 interviews. The results demonstrate that Compensation has a positive and significant
effect on performance, Competence moderates the relationship between compensation and performance
in a positive and significant way, Compensation has a significant positive effect on Employee
Engagement, Career Development has a significant positive effect on Employee engagement, Employee
engagement has a significant positive effect on performance, and Employee Engagement as a mediating
variable that has a significant positive effect on career development and performance. The implications
of the findings of this study as a reference for future policy development and human resource
development at Airnav Indonesia Balikpapan, in order to improve the quality of air traffic services and
flight safety.
Keywords: Compensation; Career Development; Competency; Employee Engagement; Performance
INTRODUCTION
Human resources are a key element that plays an important role in realizing the vision of a
company. No matter how sophisticated technology in a company will not function optimally
without the role of humans. The Covid-19 pandemic that has hit the world has not only had a
significant impact on human health but also has an impact on the global economic crisis that has
hit various industrial sectors including the aviation sector, especially aviation navigation services
whose income depends on the number of aircraft flying in an airspace.
The existence of a policy of prohibition and restriction of air travelers caused Perum
Lembaga Penyelenggara Jasa Navigation Aviation Indonesia (LPPNPI) or better known as Airnav
Indonesia to experience a significant decrease in revenue and have a direct impact on the welfare
of its employees, namely Air Traffic Controller (ATC) which is the main wheel of this company's
operations.
Air Traffic Controller or better known as Air Traffic Controller (ATC) is a professional on
duty at an airport. Its job is to provide flight navigation services to aircraft flying in an airspace
under its supervision. As the purpose of air traffic services in accordance with Doc. 4444
Procedures For Air Navigation Services- Air Traffic Management (2016) is: Preventing Aircraft
Collisions, preventing collisions between aircraft and obstacles (such as humans, vehicles,
inanimate objects) in the area of aircraft movement ( manouvering area ), accelerate and maintain
the regularity of air traffic flow.
Therefore, to provide safe, comfortable, and efficient air traffic services to customers, in
carrying out their duties and obligations an ATC is required to have good competence. This is
demonstrated through a selective and competitive system of recruitment, education and training
of ATC officers. The process includes the selection of cadet candidates in several official schools
under the auspices of the Human Resources Development Agency (BPSDM) of the Ministry of
Transportation which then after graduation will be recruited by Airnav Indonesia or Public
Company (Perum) Indonesian Aviation Navigation Service Provider Institution, as the only flight
navigation service supervisor company in Indonesia.
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In order to maintain the sustainability of the company during the economic recession,
Airnav Indonesia's management finally made various strategic policies that directly affect
compensation and career development in the organization. As Hedger (2007) argues, one effective
way to maintain employee engagement is to show that they are valued by the organization
(Hedger, 2007). Therefore, a good organization must have a good compensation system so as to
increase employee engagement in the organization (Sundaray, 2011). Compensation can also be
given in the form of recognition or appreciation for the work of employees and can increase the
sense of attachment to the organization or company (Ologbo & Sofian, 2013).
According to research conducted by Andrea Bencsik, et.al (2021) on generation Z and
generation Y (millennial) employees in Pakistan and Hungary, it was found that work motivation
was positively influenced by career opportunities by 42.3% and position positions by 13.1%.
Based on this research, this is certainly a big challenge for management today, where the majority
of employees are millennials. This leads to demotivation and decreased employee engagement .
Furthermore, based on pre-research interviews conducted by researchers in the past year
with 30 respondents from a total of 37 populations, it was found that all respondents claimed to
have experienced a significant decrease in compensation which had an impact on their family's
economic condition. This makes 16 out of 30 respondents admit that during this pandemic they
are or have tried to increase income from other businesses because they cannot fully rely on their
monthly income as Air Traffic Controllers (ATC).
Sixteen out of 30 respondents said that they experienced a decrease in motivation due to
the career development system that did not work according to the organizational regulations
promised to employees. One respondent, whose identity was withheld by researchers, said that
this made him no longer ambitious to develop a career at Airnav Indonesia and chose to focus on
doing business in other fields.
Meanwhile, regarding competency development, 20 out of 30 respondents admitted that
they were dissatisfied with the competency development system that applies at the ATS Operation
unit Airnav Indoesia Balikpapan. According to one respondent whose identity was withheld by
researchers, information about education and training opportunities (training) is considered to be
still less open, and the selection system for who employees are selected to attend training is still
subjective and the indicators are less clear. This also has an impact on employee engagement
which in the opinion of one of the supervisors has directly decreased. This can be seen from the
decline in participation of some employees in company activities outside operations.
The results of this study are also supported by previous research conducted by Rauhati
(2020) on job satisfaction of Airnav Indoesia Air Traffic Controller (ATC) Balikpapan branch,
in quantitative research conducted on 28 respondents it was found that only 57.1% of employees
were satisfied with the salary they received while the rest stated neutral and even very dissatisfied.
Furthermore, it was found that less than half of employees (46.4%) expressed satisfaction with
promotions or opportunities to attend training based on work results and employee achievements.
This is in accordance with what was stated by (Bai & Liu, 2018) in their research. They stated
that one aspect that causes a decrease in employee engagement is career development
opportunities which can also cause employee demotivation at work. This statement is supported
by (Robinson et al., 2004) who says that engaged employees will be aware of the business context,
and work closely with their work colleagues for the benefit of the organization. Therefore, career
development opportunities that can improve employee competence and employee engagement
should be one of Airnav Indonesia Balikpapan's main concerns.
The good performance of Airnav Indonesia's Balikpapan Air Traffic Controller (ATC) will
support flight safety, and safe flights will save millions of lives every day. Therefore, support
from Management for factors that contribute to the performance of ATC Airnav Indonesia
Balikpapan branch must always be one of the priorities that need to be maintained and improved.
This is in accordance with ICAO Document 9161 (2013) Manual on Air Navigation Service
Economics in the section Air Navigation Services Economic and Financial Management which
states that poor performance of any employee working in an Air Navigation Service Provider for
example Airnav Indonesia can have a widespread negative impact on other members of the
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aviation community in general.
Based on the description mentioned earlier, the author then attracted the attention of the
author to conduct research on the relationship between compensation, employee engagement,
employee competence and career development on the performance of Air Traffic Controller
(ATC) at Airnav Indonesia Balikpapan branch with the research title: Analysis of Air Traffic
Controller (ATC) Performance Behavior Model Airnav Indonesia Balikpapan Branch.
RESEARCH METHOD
The method used in this study is quantitative research method, which is research that views
that human behavior can be predicted and social reality is objective and measurable (Muri Yusuf,
2017). The type of research in research is Exploratory and Correlational research.
The source of data used in this study is primary data and secondary data, in this study can
be obtained directly research questionnaires to respondents who are considered to have
represented the population. Thus, the source of perimer in this study is the Air Traffic Controller
(ATC) who is on duty at Airnav Indonesia Balikpapan branch. In this study, secondary data were
obtained from direct supervisors, namely Operations Manager and literature, articles and
scientific writings. In this study, researchers will conduct research on 38 Air Traffic Controllers
(ATC) who serve in the Balikpapan branch of Airnav Indonesia.
Researchers using non-probability sampling techniques, Sugiyono (2019) said that non-
probability sampling techniques are sampling techniques that do not provide opportunities for
every element or member of the population to be selected to be sampled. And researchers will use
total sampling techniques (Sugiyono, 2019). So from the description above, the sampling
technique used as a research was 38 Air Traffic Controllers (ATC) who served at Airnav Indonesia
Balikpapan branch.
Research Instruments, the use of research instruments is to find complete information about a
problem, natural and social phenomenon. The instruments used in this study are intended to
produce accurate data using scales. The scale used is the Likert Scale.
This research analyzes the data using the Structural Equation Model (SEM) method with
data processing using PLS software PLS 3.0. Ghozali (Imam, 2014, p. 30) stated that Partial
Least Square (PLS) is a method of data analysis not based on various assumptions so it is said
to be powerful. Data in PLS is not always normally distributed multi-variate (scale categories,
ordinals, intervals and ratios, indicators are used the same model), the sample used in PLS does
not have to be much. PLS can be used to confirm the theory, as well as to describe the presence
or absence of correlation between latent variables.
According to (Imam, 2014, p. 31)that the PLS approach is more suitable to be used for
prediction purposes because in the PLS approach all measures of variance are useful to describe.
PLS is used in causal-predictive analysis under conditions of high complexity and low
theoretical support. According to (Imam, 2014, p. 36) the path analysis model of all latent
variables in PLS includes: 1) Inner Model or often called structural model, whose specification
is the correlation between latent variables; 2) Outer Model or often called measurement model,
whose specification is the correlation between latent variables to indicators or manifest
variables; 3) weight relation, where the case value on the latent variable is estimated.
RESULTS AND DISCUSSION
Results of Analysis of Factors Affecting Performance
1. Measurement Model Analysis / Outer Model
Furthermore, the analysis of the measurement model in this study was carried out to test
the reliability of a construct or indicator consisting of Convergen Validity (Loading Factor and
Average Variance Extraced / AVE). An indicator is considered reliable if it has a loading factor
value of > 0.7 on the construct it will measure. The reflective model is said to be strong if the
AVE value > of 0.50, the AVE value must be higher than the cross loading correlation.
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Table 1 Tabel Validitas
Leave variable
Indicator
Loading Factor
Stage 1
Stage 2
Compensation (X1)
Kmp1
0.251
Drop
Kmp2
0.715
0.797
Kmp3
0.173
Drop
Kmp4
0.388
Drop
Kmp5
0.805
0.759
Kmp6
0.722
0.806
Career Development (X2)
Krr1
0.771
0.768
Krr2
0.788
0.792
Krr3
0.801
0.801
Krr4
0.857
0.858
Krr5
0.830
0.828
Employee Enggagement (Y1)
Eng1
0.804
0.800
Eng2
0.804
0.838
Eng3
0.752
0.807
Eng4
0.632
Drop
Eng5
0.884
0.913
Eng6
0.711
0.736
Eng7
0.651
Drop
Eng8
0.173
Drop
Eng9
0.651
Drop
Performance (Y2)
Knj1
0.722
0.806
Knj2
0.655
Drop
Knj3
0.840
0.807
Knj4
0.846
0.863
Knj5
0.648
Drop
Knj6
0.726
0.720
Competence (Z)
Kpt1
0.393
Drop
Kpt2
0.521
Drop
Kpt3
0.701
0.796
Kpt4
0.831
0.858
Kpt5
0.787
0.731
Kpt6
0.659
Drop
Kpt7
0.613
Drop
Kpt8
0.276
Drop
Kpt9
0.374
Drop
Sumber: SEM PLS
Based on Table 1 above, it can be concluded that from all statements in the questionnaire
with each indicator that has a loading factor value of less than 0.70 is issued or dropped. This
means that all items in stage 2 have a loading factor value of more than 0.70 and validly reflect
each variable. So that all manifest variables have met the rules of the measurement model and can
be continued for further testing.
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a) Composite Reliability
Table 2 Average Variance Extracted (AVE)
Variabel
Cronbach's
Alpha
Composite Reliability
(CR)
Average Variance
Extracted (AVE)
Employee Enggagement
0.8776
0.9113
0.6738
Performance
0.8124
0.8766
0.6408
Compensation
0.7975
0.8306
0.6206
Competence
0.7167
0.8384
0.6346
Career Development
0.8697
0.9050
0.6560
Source: SEM PLS
Based on Table 2 above, it can be concluded that this test was carried out to measure the
amount of variance caused by each total variable construct. The value seen in this test is the value
of average variance extracted (AVE) on all variables obtained as an estimated result where the
value > 0.50 so that it can be declared valid. Test results on the value of average variance
extracted (AVE) will be useful for statements in the questionnaire on each indicator added as a
whole in assessing their validity. It can be seen that the value of all variables in reliability testing
using either Cronbach's Alpha or Composite Reliability is > 0.7. Therefore, it can be concluded
that the variables tested are valid and also reliable, so they can continue to test structural models.
b) Discrimination Validation Test
1. Fornell-Larcker Criterion
Table 3 Discriminant validity based on Fornell-Larcker Criterion
Variable
Employee
Engagement
Performance
Compensation
Competence
Career
Development
Employee
Engagement
0,821
Performance
0,879
0,800
Compensation
0,551
0,697
0,788
Competence
0,370
0,423
0,457
0,797
Career
Development
0,608
0,667
0,499
0,415
Source: SEM PLS
Based on Table 3 above, it can be concluded that the Fornell-Larcker Criterion value on
all variable correlations to the variable itself when compared to other variables has a higher value,
so the correlation is said to be valid.
2. Cross Loading
The following is presented the value of cross loading on each indicator in each research
variable.
Table 4 Cross Loading
Employee
Enggagement
(Y1)
Performanc
e (Y2)
Compensati
on (X1)
Competence
(Z)
Career
Development
(X2)
Eng1
0,800
0,791
0,518
0,291
0,540
Eng2
0,838
0,716
0,416
0,279
0,567
Eng3
0,807
0,637
0,361
0,324
0,361
Eng5
0,913
0,817
0,503
0,345
0,504
Eng6
0,736
0,613
0,439
0,281
0,502
Kmp2
0,352
0,569
0,797
0,108
0,376
Kmp5
0,559
0,568
0,759
0,488
0,385
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Kmp6
0,356
0,495
0,806
0,465
0,419
Knj1
0,593
0,806
0,545
0,327
0,573
Knj3
0,760
0,807
0,542
0,406
0,480
Knj4
0,789
0,863
0,685
0,514
0,583
Knj6
0,652
0,720
0,434
0,052
0,501
Kpt3
0,373
0,403
0,270
0,796
0,268
Kpt4
0,234
0,291
0,337
0,858
0,354
Kpt5
0,244
0,288
0,522
0,731
0,391
Krr1
0,454
0,531
0,471
0,373
0,768
Krr2
0,494
0,557
0,390
0,290
0,792
Krr3
0,287
0,366
0,203
0,242
0,801
Krr4
0,526
0,556
0,464
0,215
0,858
Krr5
0,606
0,617
0,420
0,505
0,828
Source: SEM PLS
Based on Table 4 above, the correlation between indicators and variables of has a higher
value than other variables. Each indicator on the motivation variable is higher than the other
variables, the variables of Concentration, Compensation, Career Development, Employee
Engagement, and Performance. Thus discriminantly validating the condition is valid.
Structural Model Analysis / Inner Model
1. Evaluasi Collinearity/Variance Inflation Factor (VIF)
High collinearity can lead to significant misjudgment and weight estimation. The value of
Variance Inflation Factor < 10 indicates that there is no indication of collenearity symptoms. The
following are the results of Collinearity/Variance Inflation Factor (VIF) testing in this study:
Table 5 Uji Collinearity/Variance Inflation Factor (VIF)
Variabel
Employee
Enggagement (Y1)
Kinerja
(Y2)
Employee Enggagement (Y1)
1.86
Compensation (X1)
1.33
1.66
Competence (Z)
1.35
Career Development (X2)
1.33
1.98
Source: SEM PLS
Based on table 5 above, it can be concluded that the VIF value in each variable is
far below 10 or the VIF value < 10.
a. Significance Estimation (t-statistical)
The path coefficient gives an idea of the magnitude of the correlation between
construct variables using the bootstrapping procedure. Bootstrapping presents non-
parametric analysis precision estimation on the outer model and inner model. T-
statistical test with significant value: "(two-tailed) t-value 1.65 (significant level
10%); 1.96 (significant level 5%); and 2.58 (significant level 1%)".
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Figure 1 Image Standardized Loading Factor
b. Coefficient of Determinant (R-Squares (R²)
R Square Test analysis is carried out to determine the value of exogenous variables to
endogenous values based on R², as follows:
Table 6 Coefficient of Determinant (R-Squares R²)
Variabel Endogen
R Square
R Square Adjusted
Employee Enggagement (Y1)
0.4515
0.4201
Performance (Y2)
0.8637
0.8424
From the calculation above, it can be conveyed that the Performance variable is influenced
by Compensation, Career Development, and Competency by 86.37%, while the remaining
13.63% is likely to be influenced by variables other than the four exogenous variables studied. In
addition, Employee Engagement is influenced by compensation and career development variables
by 45.15% while the remaining 54.85% is explained by other factors outside the model.
c. F Square Analysis
F Square analysis is to assess the magnitude of influence between variables with
effect size or f square.
Table 7 Test F
Variabel
Employee
Engagement
Performance
Employee Engagement
0,016
Compensation
0,082
0,059
Competence
0,101
Moderating Effect 1
(Competency Moderation Compensation*Performance)
0,137
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Variabel
Employee
Engagement
Performance
Career Development
0,119
0,372
Source: SEM PLS
Based on table 7 above, it can be concluded that the effect of small size or negligible
because the value of F Square < 0.02 between Z to Y and large size X1 to Y, X2 to Y and
Moderating Effect I to Y.
d. Significance Value Analysis
Significance value testing is used to express the significance of relationships between paths
to see the strength of relationships between variables. This significant value can be obtained by a
bootstrapping procedure that results in a P value of < 0.5. The following is a test of the
significance value in this study:
Table 8 Test the hypothesis
Hipotesis
T
Statistics
(|O/STDEV|)
P Values
Information
H1
Compensation has a significant
positive effect on performance
DE
2.5165
0.0060
**
Hypothesis
Accepted
H2
Kompetensi memoderasi hubungan
antara kompensasi dan kinerja
Moderatin
g Effect
1.8521
0.0321
**
Hypothesis
Accepted
H3
Compensation has a significant
positive effect on employee
engagement
DE
2.8743
0.0021
**
Hypothesis
Accepted
H4
Career Development has a significant
positive effect on Employee
engagement
DE
4.7513
0.0000
**
Hypothesis
Accepted
H5
Employee engagement has a
significant positive effect on
performance
DE
7.9638
0.0000
**
Hypothesis
Accepted
H6
Employee Engagement as a mediating
variable that has a significant positive
effect on career development and
performance
IE
(Mediatin
g Effect)
4.1026
0.0000
**
Hypothesis
Accepted
Description: DE (Direct Effect), IE (Indirect Effect) , **)significant alpha 5%
Taken from PLS Report data
Based on Table 8 above, to answer the hypothesis of this study can be explained as follows:
1. Hypothesis 1 is that Compensation has a significant positive effect on the performance of the
Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch, based on table 4.18
above shows the effect with the test results on the line coefficient value of 4.937 P value of
0.0000 ( < 0.05) meaning that Compensation has a positive effect on performance significantly
so that Hypothesis 1 is accepted.
2. Hypothesis 2, namely Competence moderates the relationship between compensation and Air
Traffic Controller (ATC) performance at Airnav Indonesia Balikpapan branch, based on table
8 above shows a significant influence with test results on the line coefficient value of 1.852
and P value of 0.032 (< 0.05) meaning that Competence moderates the relationship between
compensation to performance significantly so that the Hypothesis is accepted.
3. Hypothesis 3 is that Compensation has a significant positive effect on Employee engagement
Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch with test results on a
path coefficient value of 2.874 P value of 0.002 (< 0.05) meaning that Compensation affects
Employee engagement positively and significantly so that Hypothesis 3 is accepted.
4. Hypothesis 4, namely Career Development, has a significant positive effect on Employee
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engagement Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch, with test
results on a path coefficient value of 4.751 and a P value of 0.000 (< 0.05), meaning that the
influence of Career Development on Employee engagement is positive and significant so that
Hypothesis 4 is accepted.
5. Hypothesis 5 is that Employee engagement has a significant positive effect on the performance
of Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch, with test results on
the line coefficient value of 7, 964, P value of 0.000 ( < 0.05) meaning that the effect of
Employee engagement on performance is positive and significant so that Hypothesis 5 is
accepted.
6. Hypothesis 6, namely Employee Engagement as a mediating variable that has a significant
positive effect on career development and performance, with test results on the path coefficient
value of 4,751 and P value of 0,000 (< 0.05) means that the influence of Employee
Engagement as a mediating variable on career development and performance is a positive and
significant effect so that Hypothesis 6 is accepted.
Discussion
Based on the data analysis above, to find out the Air Traffic Controller (ATC) Performance
Behavior Model of Airnav Indonesia Balikpapan Branch in this study can be delivered
theoretically as follows:
1. Compensation has a significant positive effect on the performance of Air Traffic
Controller (ATC) at Airnav Indonesia Balikpapan branch
Compensation has a positive and significant influence on performance. Based on the
results of descriptive tests on compensation indicators, it shows that financial compensation
owned by Airnav Indonesia's Air Traffic Controller (ATC) Balikpapan Branch has great
potential in generating motivation to generate better performance. This is because Airnav
Indonesia's Air Traffic Controller (ATC) Balikpapan Branch has wages and benefits that
can provide fulfillment of workers' daily needs so that wages and other compensation provide
a more decent livelihood for Airnav Indonesia's Air Traffic Controller (ATC) Balikpapan
Branch. The following statement supports the results of the PLS analysis which states that
compensation has an influence on performance.
The theory states that compensation is the total of all rewards received by employees
as a substitute for the services they have provided. This statement is supported by Abraham
Maslow (in Robbins and Judge, 2016) who argues that humans will be encouraged to do
something if the person wants to meet his needs, namely physiological, security, social,
reward or achievement. This is in line with the opinion of another expert Clayton Alderfer
(in Robbins, 2003) who said that in order to meet his needs humans do not do it one by one
but simultaneously in one moment. So based on these two theories it is known that
compensation can be a motivator for a person to meet his needs at least two needs at once,
namely physiological needs and rewards. This shows that the compensation received by
Airnav Indonesia's Air Traffic Controller (ATC) Balikpapan Branch is in line with the theory
conveyed that the compensation received by Airnav Indonesia's Air Traffic Controller (ATC)
Balikpapan Branch has no influence on the performance created.
This condition is in line with the research conducted (Asmayana et al., 2018) which
states that compensation has a positive effect on performance. In the study, it was said that
compensation is one of the main goals of employees working to meet their needs through
employee benefits. This research explains that the higher the compensation received by
Airnav Indonesia's Air Traffic Controller (ATC) Balikpapan Branch, it will have a direct
impact on the performance created. In addition, research conducted by Pongajouw, G.D
(2015) also states that there is a positive influence between compensation and employee
performance.
Based on the condition of the respondents, namely the Air Traffic Controller (ATC)
Airnav Indonesia Balikpapan Branch, it was seen that compensation encouraged better
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performance. This compensation indicator is not working well among Airnav Indonesia Air
Traffic Controllers (ATC) Balikpapan Branch so it needs to be improved and always
updated. As for matters related to the Air Traffic Controller (ATC) Airnav Indonesia
Balikpapan Branch that needs to be considered is the provision of acceptable salaries so that
it will improve the current performance.
2. Competency moderates the relationship between compensation and Air Traffic
Controller (ATC) performance at Airnav Indonesia Balikpapan branch
Competency did not have a positive and significant influence on performance after
moderating the relationship between compensation and Air Traffic Controller (ATC)
performance at Airnav Indonesia Balikpapan branch. Based on Sugiyon (Sugiyono, 2013,
p. 60) moderation variables are variables that can strengthen or weaken the relationship
between independent and bound variables. In the descriptive analysis and interview results
with one of the Balikpapan ATC personnel, it is known that every ATC personnel serving in
Indonesia has met the competency standards determined by the Regulator (Directorate of
Civil Aviation). As for in the course of his career, if an ATC gets the opportunity to take part
in competency development programs such as education and training for company purposes,
until the time this research is made, according to the source, it does not affect the increase in
employee salaries. However, related to performance, because the nature of the ATC work
itself has a great moral responsibility because it involves the lives of many people, even if
there is a significant reduction in compensation, an ATC will still work well. This statement
is in line with the results of respondents' answers of 100% saying they agree and strongly
agree with the statement of the variable Competency: I am able to be professional even
though I am facing a difficult situation. This is further reinforced by the results of the
significance test which shows that competence does not have a positive and significant effect
on performance after moderating the relationship between compensation and ATC
performance at Airnav Indonesia Balikpapan branch.
Competence is the skills, knowledge, abilities and other characteristicsِ that a person
needs to doِ workِ effectively. While Armstrong and Baron (2012) suggest that competence
is an underlying characteristic of a person and is related to the effectiveness of that person's
performance in his work. This statement is emphasized by Spencer and Spencer (1993) who
state that competence is knowledge (knowledge competencies), expertise (skill
competencies) that tend to be more real and relatively on the surface as one of the
characteristics possessed by humans while self-concept (self concept), character / trait (trait)
and motive (motive) Competence is more hidden in the deep and is associated with the center
of one's person. Competence based on this explanation is a basic characteristic of a person
that indicates the way of thinking, behaving, and acting and drawing conclusions that can be
done and maintained by a person at a certain period. From these basic characteristics, it
appears that the purpose of determining the level of competence or competency standards
can determine the expected level of performance and categorize high or below average
levels.
This is in accordance with research conducted by previous researchers to other
professionals in the field of Pharmacy which states that professional workers in the field of
Health already have a blueprint of standard practices, work accountability references, and
progressive career paths where in daily work practices these professionals are based on job
descriptions that have been determined according to their respective roles and duties, It is
also mentioned that the fact in the field that the acquisition / addition of knowledge in the
form of theory is not a guarantee of the implications of success in daily work practice (Udoh
et al., 2021).
Based on the analysis of the answers on the questionnaire, it was found that the Air
Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch still experienced problems
in communicating their opinions freely to superiors. This opinion was confirmed by one of
the Balikpapan ATC personnel who said that this is closely related to the "eastern" culture
that is still attached to the Indonesian nation where a sense of hesitation and hierarchy of
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positions play a big role in the Balikpapan ATC work environment which makes it difficult
for someone to be able to speak fairly and what it is. This statement does not go straight
with the opinion of some researchers who state communication is an important factor in
competence (Holá et al., 2020; Rabiul et al., 2022).
Thus, it can be concluded that the Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch in working is still not optimal in channeling its aspirations to
management. This condition is not in accordance with research that (Setiawan et al., 2022)
which states that the variables of competence and motivation have a significant effect on
employee performance. Meanwhile, leadership variables and work environment do not have
a significant effect on the performance of employees of the Population and Civil Registration
Office of Banyuwangi Regency. This research explains that the higher the competence a
person has will not cause freedom of space to raise enthusiasm for performance or other
motivations.
Based on the condition of the respondents, namely the Air Traffic Controller (ATC)
at Airnav Indonesia Balikpapan branch is still not effective in communicating their
aspirations to superiors freely so that this point needs to be improved and always updated to
achieve maximum performance.
3. Compensation has a significant positive effect on Employee engagement Air Traffic
Controller (ATC) at Airnav Indonesia Balikpapan branch
Compensation has a positive and significant influence on employee engagement.
Based on the results of descriptive analysis, it shows that every compensation indicator,
namely financial and non-financial, owned by Air Traffic Controller (ATC) at Airnav
Indonesia Balikpapan branch has great potential in encouraging Air Traffic Controller (ATC)
at Airnav Indonesia Balikpapan branch to generate employee engagement So as to create a
better working atmosphere. In addition, it is supported by the results of a signification test
that shows the effect of compensation on employee engagement.
Compensation is a tool that can be used to motivate employees. The amount of income
earned by employees is very influential not only on their standard of living, but also on the
status and recognition given by the social environment to the employees concerned. For this
reason, employees will give the best possible performance so that they deserve the rewards
they want. This can be understood because from the perspective of employees, as expressed
by Newman and Milkovich (2008), compensation is a reward for services provided by
employees, or as an appreciation for the results of satisfactory work and work performance
provided by employees to the company. For some, compensation reflects the value of a
person's personal skills and abilities, or as a result of improved education or training that has
been undertaken by employees (Miles & Mangold, 2007; Warouw & Lapian, 2015; Zahid &
Khurshid, 2020). No less important is compensation from the company's point of view. In
this case, compensation is a major expense, which is a very large expenditure/cost item (Cell
& Factor, 2019). Research shows that in many companies the funds spent on compensation
account for more than 50% of the total costs incurred by the company. While in government-
owned companies, the portion can be even larger. The compensation system varies from
company to company, even if the companies are in the same industry. Thus, compensation
can be one of the competitive advantages that the company has (Newman & Milkovich, 2008).
Apart from being a major expense, companies also see compensation as a means to influence
employee attitudes and behavior. Compensation influences an employee's decision to apply
for a job, to work productively, to attend the education and training necessary for a job, and
even to take the company to court if compensation practices are deemed to be illegal (Newman
& Milkovich, 2008).
This research explains that the compensation received by a person will have a direct
impact on employee engagement. This is because every compensation given is timely and
gets other non-financial benefits that provide a more decent life for workers. In addition,
research conducted by Wulandari and Cahyono (2021) states that compensation has a direct
and cynical effect on employee performance, while compensation connected to job
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satisfaction will indirectly improve employee performance.
Based on the conditions of the respondents, it is known that compensation can create
attachment or engagement to the Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch. From the answers given by respondents, it can be seen that the financial
compensation received is on time and the benefits received are needed to meet the needs of
employees, this means that this compensation indicator has been running quite well among
Air Traffic Controllers (ATC) at Airnav Indonesia Balikpapan branch so that it can continue
to be improved and always maintained, but related to fairness in providing salaries between
divisions is still a point Important that needs to be considered by Airnav Indonesia
Management is financial compensation in the form of equal wages in accordance with the
duties and responsibilities of workers.
4. Career Development has a significant positive effect on Employee engagement Air
Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch
Career development has a positive and significant influence on Employee engagement
Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch. Based on the results
of descriptive research shows that all career development indicators, namely fair treatment
in career, direct supervisor care, information about promotion opportunities, the existence of
minants for promotion and the level of satisfaction possessed by Air Traffic Controller
(ATC) at Airnav Indonesia Balikpapan branch have great potential in generating better
employee engagement in Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan
branch. In addition, it is supported by the results of the significance test which states the
influence between career development on Employee engagement Air Traffic Controller
(ATC) at Airnav Indonesia Balikpapan branch.
The theory states that career development is an effort made by companies to plan the
careers of their employees, consisting of career management, including planning,
implementing, and supervising careers. Career development is expected by every employee
and it will motivate employees to work well in its implementation, career development is
more inclined as the implementation of career planning. Handoko in (Sinambela, 2018) said
career development is a personal improvement made by a person to achieve the desired
career plan, on the other hand Mondy (2005) suggests that career development is a series of
activities to prepare an employee for planned career advancement. Poltak and Sinambela
(2019) suggest that in career development there are things that need to be considered,
namely: work has a very significant influence on career development if every day work
presents different challenges, then the things learned on the job will be far more important
than formal development activities. The form of skill development required, determined by
specific job demand, for example, to become a supervisor, the skills needed must be different
from the skills to become a manager;.
If a person acquires the skills needed to perform the job, if the demands are further
developed, then a person who already has the required skills is given a new job according to
the skills he already has, in this case the time required for development can be minimized by
identifying a rational series of individual job placements. Career development through
promotion for employees is something that is highly expected by every employee. Promotion
is a transfer that can enlarge the power or authority and responsibility of an employee to a
higher position in an organization so that obligations, rights, status, and income will increase
as well. With the promotion of trust and recognition of the ability and ability of employees
to occupy higher positions.
This condition is in accordance with research conducted by Robianto et, al (2019)
which states that career development, compensation, work environment and satisfaction have
a positive and significant effect on work engagement in Bukittinggi City Government
Employees. So that employees will believe that with the development of karia, the
relationship between employees is more pleasant and results in a better working atmosphere
in a company organization. This study explains that the higher a person's career development,
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the more direct the relationship between employees or employee engagement. In addition,
research conducted by (Adeniji et al., 2019) The study has provided insights to improve
employee effectiveness through investment in skills development that enhance their
experience; promote them at maturity without sacrificing and reward them based on their
achievements and recognize the values added to the organization.
Based on the condition of the respondents, namely the Air Traffic Controller (ATC)
at Airnav Indonesia Balikpapan branch, it can be seen that career development can encourage
employee engagement. This career development indicator has been running well among Air
Traffic Controllers (ATC) at Airnav Indonesia Balikpapan branch so that it can continue to
be improved. As for matters related to career development that need to be considered are fair
treatment, information about promotion opportunities and satisfaction levels.
5. Employee engagement has a significant positive effect on the performance of Air
Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch
Employee engagement has a positive and significant influence on the performance of
Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch. Based on the results
of the descriptive test, it shows that all employee engagement indicators, namely enthusiasm,
devotion, and absorption, owned by the Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch have great potential in producing better performance. In addition, it is
supported by the results of the signification test which states that employee engagement has
a direct effect on the performance of the Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch.
The theory presented mentions Work engagement or employee engagement is as an
attitude shown by employees in an organization by involving as a whole, namely by
involving physical, mind or cognitive states and emotions. Work engagement is caused by
several things such as the belief that the work they do has meaning and compatibility between
the values held by an employee, co-workers and the values owned by the organization. In
particular, Khan (1990) focuses his attention on how workers behave in carrying out their
roles and duties, and workers are psychologically present in their roles and duties in the world
of work. Schaufeli et al. (2006) also explained that work engagement is a positive, satisfying,
and connected mental state to work-related matters characterized by passion, dedication and
passion. Meanwhile, Bakker et al. (2008) term the work attachment owned by employees as
work engagement, which is a positive affective-motivational state about work-related
welfare that is characterized by vigor, dedication, and absorption. In this case work
engagement does not refer to momentary and specific states, but refers to affective-cognitive
states that place more emphasis on persistence and broad thinking, not focused on one
particular object, event, individual and behavior. The existence of work engagement appears
in the course of the organization in a relatively long time and has stable characteristics that
do not arise drowning at a time.
This condition is in accordance with research conducted by Mayanatasia (2018) which
states that Employee Engagement has a positive effect on employee performance, when
employees have a sense of attachment (engagement) to the company, the performance given
will be high as well. This condition is characterized by the length of work of employees who
are more than one year even 18.42% of employees have worked for more than twenty years.
This research explains that the higher a person's loyalty in employee engagement, it will have
a direct impact on the performance of the Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch.
Based on the condition of the respondents, namely the Air Traffic Controller (ATC)
at Airnav Indonesia Balikpapan branch, it can be seen that loyalty to the company can
encourage the Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch to have
better performance. This employee engagement indicator has been running well among Air
Traffic Controllers (ATC) at Airnav Indonesia Balikpapan branch so that it can continue to
be improved and always updated. The ATC profession is a unique and specific job with
limited employment, this condition is an advantage for the company, especially Airnav
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Indonesia because this company is the only flight navigation service supervisory company
in Indonesia where Indonesian ATCs work so there is a scarcity of other alternatives that
will occur if an ATC decides to turnover.
6. Employee Engagement as a mediating variable that has a significant positive effect on
career development and performance
Based on the results of the significance test in this study, it was found that employee
engagement as a mediating variable has a positive and significant influence on the
relationship between career development and performance. This statement also means that
the employee engagement variable is significant enough to be an intermediary between the
independent variable, namely career development, and the dependent variable, namely
performance. Based on the results of descriptive analysis, it shows that employee
engagement indicators such as devotion and absorption provide an overview of compatibility
with those owned by the Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan
branch.
Based on the theory conveyed, performance is defined as performance, work results
and work performance. According to Wibowo (2017) performance is about doing work and
the results achieved from the work. Collquitt e.al (2011) said that performance is a series of
worker behavioral values that contribute both positively and negatively to the completion of
organizational goals. Performance Management is about directing and encouraging workers
to work effectively and efficiently according to the needs of the organization. While
Strebler.et.al (2001) said that performance management is a systematic approach that aims
to improve business and team performance in order to achieve business goals. Organizational
performance is greatly influenced by individual performance so that if organizational
performance is to be improved, individual performance must be improved. According to
Mitchel in Sinambela (2018), good performance is influenced by two things, namely
motivation and a good level of work ability. Because a person's ability is influenced by the
person's understanding of the work and skills he does. On the other hand, motivation also
affects performance because even though a person's abilities and skills are good, but the
motivation is low, the kinera will be low too. Employee performance must be planned
continuously because performance improvement requires well-organized planning and
actions within a certain period of time. Thus, the more confident someone is in an action, the
higher employee engagement and performance.
Career development can make employees feel happy and happy so as to increase
employee engagement and performance (Kulkarni et al., 2022; Widiyanto et al., 2017). This
statement is supported by research conducted by Azizah and Gustomo (2015) where
Employee Engagement has an influence of 63% on employee performance. According to the
explanation, the employee relationship with the company has a better effect on employee
performance. This research explains that the higher employee engagement, the more direct
the impact on career development and performance.
This opinion is not in accordance with the conditions of respondents, namely Air
Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch because based on the
results of the study it appears that there are other indicators that provide additional
reinforcement of existing employee performance, while employee engagement does not
have an important effect as a mediator in relation to career development and employee
performance. This is because employees in this case Air Traffic Controller (ATC) are
required to try their best to carry out their duties and responsibilities professionally under
any conditions. In this case, although career development can make an employee happy and
this can increase employee engagement, this cannot have a significant effect on his
performance because the performance of the Air Traffic Controller (ATC) is related to the
safety of many people's lives, so even though his condition and mood are unhappy, it still
should not be involved at work. Professionalism is key in the Air Traffic Controller (ATC)
performance model (Sinaga et al., 2023).
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However, to improve optimal employee performance, this employee engagement
indicator needs to be considered by management, in this case absorption and
devotion.mBased on the results of the discussion above, the following is a summary of the
results of the study that answers the research hypothesis:
Table 9 Summary of research results that answer research hypotheses
Hipotesis Penelitian
T Statistics
P Values
Conclusion
Compensation against
Performance
4,937
0,000
Influential
Competency moderates
compensation against
performance
1,852
0,032
Influential
Compensation for Employee
Engagement
2,874
0,002
Influential
Career Development towards
Employee Engagement
4,751
0,000
Influential
Employee Engagement on
Performance
7,964
0,000
Influential
Career Development to
Performance
3,319
0,000
Influential
Source: Research Data, 2023
CONCLUSION
Employee performance at Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan
branch is dominated by compensation and career development. This shows that the work
performance, commitment and adaptation possessed by Air Traffic Controller (ATC) employees
at Airnav Indonesia Balikpapan branch has great potential in producing employee performance.
Factors affecting employee performance are summed up as follows: a) Compensation has a
significant positive effect on the performance of Air Traffic Controller (ATC) at Airnav Indonesia
Balikpapan branch; b) Competency to moderate the relationship between compensation and Air
Traffic Controller (ATC) performance at Airnav Indonesia Balikpapan branch; c) Compensation
has a significant positive effect on Employee engagement Air Traffic Controller (ATC) at Airnav
Indonesia Balikpapan branch; d) Career Development has a significant positive effect on
Employee engagement in Air Traffic Controller (ATC) at Airnav Indonesia Balikpapan branch;
d) Employee engagement has a significant positive effect on the performance of Air Traffic
Controller (ATC) at Airnav Indonesia Balikpapan branch; e) Employee Engagement acts as a
mediating variable in the influence of career development on performance in Air Traffic
Controller (ATC) at Airnav Indonesia Balikpapan branch, f) Employee Engagement acts as a
mediating variable in the influence of career development on performance in Air Traffic
Controller (ATC) at Airnav Indonesia Balikpapan branch
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