Path, centroid, and factor scheme for modeling the remuneration of educational staff in ITS with partial least square (PLS)

Bureaucracy condition in Indonesia reveals many shortcomings. One of bureaucratic reformation from the government is the remuneration for Civil Servants (PNS). Remuneration is a part of welfare received by employees, which can be used as an element of motivation for employees to excel and improve their performance. Variables in this study are interrelated. Motivation for achievement (ξ₁), characteristics of work environment (ξ₂) and training transfer (ξ₃) are supposedly affect the performance (η₁), while the performance (η₁) affects the remuneration (η₂). Both the performance and remuneration are constructs or latent variables, which cannot be measured directly. Therefore, the SEM method is considered able to resolve these problems. However, SEM has some assumptions that must be met. The assumptions were frequently violated when real data is used, so we need a method that is free of assumptions, free distribution and flexible that is variance-based SEM or namely partial least square (PLS). PLS is an estimation method that focuses on maximizing the variance among latent variables, which is an alternative to OLS regression. This study was conducted to model the remuneration of educational staff in ITS by using Partial Least Square (PLS) with path scheme, centroid scheme, and factor scheme. The results show that the best method for modeling the remuneration of educational staff in ITS is PLS with factors scheme, which yields Q-square value of 0.7262, R-square value of 67.69 percent and 15.28 percent for performance and remuneration respectively. Structural model obtained with factors scheme PLS is η₁ = 0,6296 ξ₁ + 0,1795 ξ₂ + 0,0843 ξ₃ + ξ₁ and η₂ = 0,3909 η₁ + ξ₂.