THE IMPACT OF RECRUITMENT SYSTEM AND CAREER DEVELOPMENT ON THE ENHANCING OF EFFECTIVENESS IN WORKING THROUGH COMPENSATION AS INTERVENING VARIABLE AT NIAGARA HOTEL PARAPAT

Abstract: Lake Toba is the biggest and deepest volcanic lake in South-East Asia, located in Parapat, Simalungun  Regency,  North  Sumatra  Province,  Indonesia.  It  is  the  tourism  icon  in Indonesia  andrecommended  to  be  one  of  the  Global  Geopark  Network  (GGN)  tourism icons established by UNESCO. The tourists visiting this destination are still as not many as other  tourism  destinations  in  Indonesia.  Many  factors  cause  such  condition.  Hotel’s hospitality  service,  which  is  an  important  role  for  tourism  convenience,  is  not  at  its maximum  quality.    Therefore,  the  domestic  and  foreign  tourists  have  not  been  able  to thoroughly enjoy the beauty of Lake Toba. The low quality of services may be caused by  the  less  effective  of    the  recruitment  system,  career  development,  and  compensation systems  which  result  in  the  diseffectiveness  of  employees  work.  The  purpose  of  this research is to analyze the impact of how recruitment system and career development on the enhancing  of  effectiveness  in  working  through  compensation  as  the  intervening  variable. The  research  is  carried  out  at  Niagara  Hotel  Parapat.  The  population  of  this  study  is  174 Niagara  Hotel  Parapat’s  employees  and  64  of  them  are  selected  as  samples  for  this research. The method used in this research is Path Analysis. The result shows that recruitment system and career development  (test-F) have significant positive  influence  over  compensation.  There  is  a  significant  positive  influence  between recruitment  over  compensation,  but  there  is  no  significant  influence  between  the  career developments  toward  compensation.  It  causes  career  development  possibility  at  Niagara Hotel to be too short and the compensation system to still be under the province minimum wage.  Recruitment  system,  career  development,  and  compensation  affect  positively  and significantly  to  the  effectiveness  in  working.  There  are  significant  positive  influences among  recruitment  system,  career  development,  and  compensation  with  respect  to  the effectiveness of the employees work at Niagara Hotel Parapat. Recruitment is a dominant variable  which  influences  more  to  work  effectiveness  rather  than    to  career  development, directly or indirectly through compensation. The research also shows that compensation is an intervening variable for  recruitment system but not for  career development.

Keywords: Recruitment System, Career Development, Compensation, Work Effectiveness

Author: Elisabet Siahaan, Parapat Gultom

Journal Code: jpmanajemengg130087

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