Analysis of the Influence of Competency Development and Compensation Systems on Employee Performance: A Literature Study of Strategic Human Resource Management

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Employee performance improves significantly with effective competency development and compensation systems, enhancing overall outcomes.
The study identifies cognitive, psychomotor, and affective dimensions as critical in competency development impacting employee capability.
Using a literature review approach, various findings from scientific publications between 2020-2025 were analyzed to establish key relationships.
Systematic integration of competency development and compensation can yield sustainable competitive advantages in organizations.

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Literature review highlights how competency development and compensation systems affect employee performance, suggesting strategic HRM improvements.

Putra et al. (2025) studied this question.

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Literature review highlights how competency development and compensation systems affect employee performance, suggesting strategic HRM improvements.