The Influence of Employee Competence on Employee Performance at PT. XYZ

In the face of increasingly dynamic business competition, companies need employees who possess the necessary skills to carry out their duties and responsibilities effectively. At PT. XYZ, improving employee performance is crucial to supporting the achievement of the organisation’s objectives; consequently, employee skills are one of the key aspects that require attention. The objective of this investigation is to examine the effect of Employee Competence on Employee Performance at PT. XYZ. As a critical determinant of productivity and operational effectiveness, Employee Competence assumes particular importance in today’s competitive business landscape. A quantitative survey design was adopted, with questionnaires administered to 98 employees selected through purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM‑PLS) via SmartPLS 4.0. The findings confirm that Employee Competence exerts a positive and statistically significant influence on Employee Performance, reflected in an original sample value of 0.528, a t‑statistic of 7.873, and a p‑value of 0.000. An Adjusted R‑square of 0.635 indicates that Employee Competence accounts for 63.5% of the variance in Employee Performance. The study recommends that the organization consistently invest in competency‑building initiatives, including training, skill enhancement, and knowledge development, to foster optimal performance outcomes.