CORRELATION ANALYSIS BETWEEN CORE COMPETENCY AND EMPLOYEE PERFORMANCE (CASE STUDY: “XYZ FOUNDATION”)

Abstract

In a competitive globalized world, human resource holds important roles to move the company.
To be able to compete with other companies, employees need to have better competency.
Competency consists of knowledge, skill, and attitude. These three aspects determine behaviors
that will support the employee performance in a company. XYZ Foundation is a foundation
that pays big attention to their employee competency development because XYZ Foundation
realizes how important employee competency is to achieve vision and mission of the
organization. XYZ Foundation wants to know if there is a correlation between competencies
that have been set to the employee performance improvement. Researcher collects Core
Competency and Key Performance Indicator score from 1075 of XYZ Foundation employees.
Based on correlation analysis using Pearson Correlation and Test of Significance, researcher
concluded that there is strong correlation (0.959) and significance (0.000) between employee
Core Competency and Key Performance Indicator score In addition, there is strong correlation
between each component in Core Competency to Key Performance Indicator of the employees:
Business Acumen (0.952), Innovation (0.951), Operation Excellence (0.954), Personal
Development (0.953), Service Excellence (0.951), with significance of 0.000 for each
component, and there are strong correlation and significance between each component in Code
Competency with the Core Competency score in XYZ Foundation Employee: Business
Acumen (0.993), Innovation (0.991), Operation Excellence (0.993), Personal Development
(0.994), Service Excellence (0.993), with level of significance 0.000 for each component.