580 American Journal of Economic and Management Business e-ISSN: 2835-5199 Vol. 4 No. 5 May 2025 Effect Of Recruitment, Job Placement And Compensation On The Performance Of Health Workers Alfians Nugraha1, Dian Indiyati2 School Of Economics and Busines Telkom University Email: alfiansnugraha7@gmail.com, dianindiyati@telkomuniversity.ac.id Abstract The problems that arise based on data from the Ministry of Health in 2023 indicate a gap in the number of health workers in various regions in Indonesia, the comparison of the number of health workers, including specialists, with the population in Indonesia is still not comparable. The same phenomenon occurs in Hasna Medika Group where the target of fulfilling health workers is still not met. This study aims to analyze the effect of recruitment, job placement and compensation on the performance of health workers, either partially or simultaneously. This type of research is quantitative using descriptive and causality approaches. Data analysis techniques apply structural Equation Modeling (SEM) with Partial Least Square (PLS) technique. The survey method is implemented data retrieval techniques with research instruments using the spread of questionnaires. The population in this study is health workers Hasna Medika Group, the sample is calculated using the solvin technique so that the number of 244 people. The results showed that recruitment, placement and compensation had a significant and positive effect on the performance of health workers in the Hasna Medika Group. The study reinforces the theory that factors such as proper recruitment, placement according to competence, and fair compensation are important elements in improving employee performance. By analyzing the relationship between these variables, the results of this study are expected to provide insight to the management of Hasna Medika Group to optimize the human resources process of health workers. This is important for healthcare organizations that rely on the performance of medical personnel to provide quality services. Keywords: Recruitment, Job Placement, Compensation, and Performance of Healthcare Workers. INTRODUCTION The existence of human resources plays a very important role in a company because the company will not be able to operate without the involvement of human resources. In this case, human resources even hold the controlling element of a company, so the success of the company in question clearly depends on these human resources (Sagian, 2019). Human resources can be utilized as a strategic asset that supports the sustainability and growth of the company, one of which is human resources in the field of health services. Planning the needs of health workers mailto:alfiansnugraha7@gmail.com mailto:dianindiyati@telkomuniversity.ac.id Alfians Nugraha1, Dian Indiyati2 581 nationally has also been regulated in government regulation of the Republic of Indonesia number 67 of 2019 (Peraturan, 2019). In relation to the development of human resources, the performance of health workers is an important factor. Improving the performance of health workers is needed to improve health services. This performance is expected to demonstrate their professional contribution in improving the quality of services that have a positive impact on the organization and quality of life of the community. However, data from the Ministry of Health indicate an insufficient number of health workers in various regions, with the ratio of health workers to the population still below the standards necessary for good service. Data from the Ministry of Health indicate a large gap in the number of health workers in different regions. In remote and border areas, the ratio of health workers is low to the needs of the population. This resulted in health facilities lack of competent medical personnel, resulting in decreased quality of health services. In an interview with the director of Human Resources & General Affairs Hasna Medika Group on November 23, 2024, it was explained that the performance assessment was carried out based on several aspects, such as KPI achievement, work discipline, and evaluation of work behavior and culture. However, there was a decline in performance in some divisions due to certain factors. The HR Supervisor also stated that the assessment considers the quality and quantity of work, responsibility, cooperation, and initiative. There is an unevenness in the quality standards of work that has an impact on the effectiveness of the team. The quantity of work in some divisions did not meet the target due to suboptimal allocation of resources. Responsibility in completing tasks also needs to be strengthened. Cooperation between employees experienced challenges in cross-divisional coordination, hindering the work process. The initiative of employees to find solutions and innovate is still low. The company has strengthened its behavior-based evaluation program to increase Team responsibility and contribution, in the hope of encouraging overall employee performance.As for one of the factors that can affect employee performance, one of them is recruitment, the implementation of recruitment that is not in accordance with the established plan, will cause problems that demand high costs, such as incompatibility between personnel placement with entrusted positions, low performance, absence of high employees, often late, anti-organizational behavior, and the uncertain working time of the Department (Castetter, 2020). Based on observations and interviews with HR supervisors at Hasna Medika Group in November 2024, the recruitment process at this company is carried out systematically to obtain qualified workers, especially in the health sector. The first step is job analysis to determine labor requirements and required competencies. Recruitment resources consist of internal, such as employee promotion, and external, through online portals, social media, as well as collaboration with universities. The recruitment method includes several stages, such as administrative screening, psychological tests, interviews and job simulations. Cooperation with universities is carried out through career seminars and recruitment programs to help prepare graduates to enter the workforce. With this approach, Hasna Medika Group has succeeded in creating an effective and relevant recruitment process to support future workforce needs. The placement of health American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 582 workers in managerial positions in hospitals is increasingly important due to the latest regulatory demands. According to the regulation of the Minister of health of the Republic of Indonesia number 17 of 2024, health workers, including doctors, must fill this position even if they do not have management education. This situation is aggravated because the managerial curriculum is not present in the basic education of health workers, which leads to a lack of skills to manage tasks such as resource management, work scheduling and quality control of services. From a managerial perspective, as highlighted by Indiyati et al (2024), prioritizing initiatives that promote transparency and trust in the workplace is highly relevant to Human Resource Management (HRM) practices. Openness means that decision-making processes, policy communication, performance evaluations, and compensation are conducted in an open and transparent manner. This helps reduce uncertainty and enhance employees' trust in management. Additionally, trust forms the foundation of a strong relationship between management and employees, enabling the development of an organizational culture that values integrity, honesty, and mutual respect. This, in turn, enhances employee motivation, loyalty, and performance. This mismatch between competence and duties carries a serious impact on hospital operations (Falih, 2017). Some of the problems that arise include inefficient work scheduling, difficulties in handling conflicts, and the inability to meet accreditation standards (Ferdi, 2016). In addition, health workers involved in managerial tasks often lose focus on clinical services, which ultimately decreases the quality of care and patient satisfaction (Bappenas, 2017). At Hasna Medika Group, the placement of health workers is carried out in a structured and qualified manner, such as education, knowledge, experience, and skills. First, health workers are placed according to formal educational backgrounds, such as nurses from nursing graduates and doctors from appropriate specialties. Secondly, an understanding of medical procedures and regulations is important. Thirdly, the relevant work experience is paid great attention. Experienced candidates are more likely to be placed in strategic positions. Fourth, practical skills are also important in serving patients and handling emergency situations. Placement refers to Permenkes number 17 of 2024, which requires leadership positions to come from health workers who have the appropriate education and experience. For the issue of managerial competence, there needs to be specific training and recruitment based on ability. Other factors that affect employee performance is the placement of work (Ranthy, 2022). The placement of the workforce must be done appropriately to meet the wishes of the company and the workforce. Employees must know their responsibilities and duties in order to work properly. Placements need to be in accordance with the expertise of the workforce to improve morale and work results. Every worker has the same rights and opportunities to choose, Get, or move jobs and earn a decent income, both at home and abroad. The placement process should be open, objective, fair, and non-discriminatory. But even so, it does not rule out the possibility of problems encountered, as happened to Hasna Medika Group in facing various challenges related to the placement of health workers. One of the main problems is the lack of qualified health workers, especially in remote and underserved areas (Groothuizen, Callwood dan Allan, 2019). Alfians Nugraha1, Dian Indiyati2 583 Hasna Medika Group has established a structured compensation policy to ensure employees feel valued and meet their well-being needs. This policy includes direct financial compensation, such as salaries and bonuses, and indirect financial compensation, including allowances and benefits. Salaries are adjusted based on position, education, experience, and responsibilities, following labor regulations and healthcare industry standards. Bonuses are awarded to employees who meet or exceed performance targets, aiming to boost motivation. Indirect financial compensation includes various allowances, health insurance coverage through BPJS, leave entitlements, and work facilities that support comfort and productivity. Special allowances are given to employees in remote locations. The company conducts external compensation surveys to compare its compensation packages with similar healthcare companies, ensuring competitiveness and compliance with regulations. This proactive approach aims to enhance employee satisfaction, loyalty, and attract top talent in the healthcare industry. In addition, other factors that can affect the performance of health workers are compensation. One dimension of fairness that needs to be considered in compensation management is external equity (Dessler, 2020). External equity refers to how the wage level of a job in a company compares to the wage level in another company. External equity refers to the fairness of compensation an employee receives compared to market or industry standards for similar positions (Suwatno dan Priansa, 2018). This is important to ensure that the organization offers a competitive remuneration package to attract and retain the best talent. The compensation package should encourage employee performance behavior and to achieve the strategy, compensation should be competitive compared to other companies (Dessler, 2019). Companies can increase employee motivation, satisfaction, and retention by providing the right rewards. This will help the overall performance of the organization. Therefore, it is important to design an effective and clear compensation system, and pay attention to the needs and expectations of employees. The importance of this study lies not only in understanding the factors that affect the performance of health workers, but also how policies related to recruitment, placement, and compensation can be designed to address existing problems so as to improve performance. Previous studies have shown that appropriate interventions in terms of compensation and work environment can increase the motivation and satisfaction of health workers, which in turn contributes to improving their performance (Braddock et al., 2023). By understanding the relationship between these three factors, health facility managers can design more effective and data-driven policies to improve the quality of health services. However, research examining the relationship between recruitment, placement, compensation, and comprehensive health worker performance in Indonesia is still limited. Some previous studies have focused on only one aspect, such as compensation, without considering the interaction between recruitment and placement (Hung, Lam dan Chow, 2020). In addition, most of these studies do not involve a sufficiently representative population or cannot be generalized to the Indonesian context, where the characteristics of health workers vary greatly from region to region. Literature Review and Hypothesis a. Human Resource Management American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 584 Human Resource Management can be defined as a strategic and coherent approach to managing an organization's most valuable asset—the people who work in the organization, both individually and collectively, to contribute to the achievement of organizational goals (Amstrong, 2019). b. Recruitment Employee recruitment is the process of finding, selecting, and hiring new employees to meet the needs of a company or organization. The primary goal of employee recruitment is to find individuals with the necessary skills, knowledge, and experience to fill existing positions within the company (Dessler, 2020). According to Hasibuan, the dimensions of recruitment are job analysis, recruitment sources, and recruitment methods (Hasibuan, 2020). Recruitment is one of the main elements in human resource management to ensure high-quality employees. A study revealed that recruitment has a positive and significant influence on employee performance. This impact is caused by a structured recruitment process that aligns with job specifications, based on job descriptions developed through job analysis. An appropriate process enables companies to hire employees with competencies that match job requirements. As a result, employees can perform their duties and responsibilities in line with company expectations and standards, ultimately leading to optimal performance (Aziz, 2017). H1: Recruitment has a positive and significant impact on the performance of healthcare workers at Hasna Medika Group c. Job Placement According to I. Mathis and H. Jackson, job placement involves placing an individual in the appropriate job position, and how well an employee fits their job will influence the quantity and quality of work (I. Mathis & H. Jackson, 2019). The dimensions of job placement according to Suwatno and Priansa are education, work knowledge, work skills, and work experience (Suwatno & Priansa, 2018). Proper job placement is key to optimizing the workforce within an organization. Companies must ensure that employees are placed in positions that align with their abilities and skills (the right person in the right place). Proper placement will help employees perform their duties well, reduce the potential for errors, and improve performance. This is supported by a study that found that job placement that considers the suitability of knowledge, abilities, and skills has a positive and significant impact on employee performance. With a good placement system, companies can achieve maximum productivity (Aldilaningsari, 2014). H2: Job placement has a positive and significant impact on the performance of healthcare workers at Hasna Medika Group d. Compensation According to Palupiningtyas and Aryaningtyas, compensation includes all forms of rewards, whether in the form of money or goods, that employees receive in exchange for the work they do (Palupiningtyas et al., 2022). In line with the views of Syawaline and Indiyati, compensation is provided both physically and non-physically as a reward for work performed (Syawaline & Indiyati, 2022). According to Dessler, the dimensions of compensation are direct Alfians Nugraha1, Dian Indiyati2 585 compensation and indirect compensation (Dessler, 2020). A study revealed that effective compensation has a positive and significant impact on employee performance. A good compensation system can motivate employees to perform their duties to the best of their ability, which ultimately contributes to improved performance (Maharani & Efendi, 2017). H3: Compensation has a positive and significant effect on the performance of healthcare workers at Hasna Medika Group e. Performance Human resource performance encompasses the achievements or work results produced by human resource members within an organization over a specific period, both in terms of quantity and quality, in accordance with the tasks assigned to them, where human resource performance encompasses the achievements or work results produced by human resource members within an organization over a specific period, both in terms of quantity and quality, in accordance with (Indiyati et al., 2021). The dimensions of performance according to Robbins and Coulter are work quality, work quantity, responsibility, cooperation, and initiative (Robbins & Coulter, 2020). H4: Simultaneous Recruitment, Placement, and Compensation Affect the Performance of Health Workers at Hasna Medika Group RESEARCH METHODS a. Types Of Research This study uses a descriptive quantitative research type of Cross-Sectional design. Descriptive method used in this study to determine the effect of recruitment, job placement and compensation on the performance of health workers. b. Population and sample The population of this study is all health workers Hasna Medika Group totaling 610 people, with sampling techniques using Slovin obtained a sample size of 244 people. The overall sample is 244 health workers because the population consists of 12 job positions, the sampling of each class must be proportional to the population. c. Instrument Statements related to the dependent and independent variables above in the operationalization of these variables, all variables are measured by measuring instruments in the form of questionnaires. The likert scale is used to analyze each statement or indicator, which is then calculated the frequency of the answers of each category (choice of answers) and then summed. d. Data Analysis Techniques Descriptive analysis in this study aims to provide an overview of data related to the dependent variable, namely performance, as well as independent variables, namely recruitment, placement and compensation. Data processing in this study using SmartPLS software with structural equation modeling is Partial Squares Structural Equation Modeling (PLS-SEM), because in this study in the form of reflective. Reflective Model is a model that shows the relationship of latent variables and indicators (Ghozali dan Latan, 2020). American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 586 RESULT AND DISCUSSION Based on 244 research respondents, most of the respondents are female at 79.1% with a diploma level of 42.2%. Most of the health workers with a service life of 1-5 years as much as 53.3%. Hasna Medika group health workers are divided into 12 work positions with a predominance of nursing positions as much as 38.1%. The results of the calculation of the percentage of respondents, recruitment variable is the variable with the highest percentage value of 78.14%, while the lowest percentage value is in the variable of work placement of 77.91%, but nevertheless the overall variable is in a good and appropriate interval. a. Outer Model Evaluation The entire value of the loading factor in the research model is greater than 0.70 (Ghozali dan Latan, 2020). This means that judging from the validity of convergent loading factor, the research instrument is declared valid. Table 1. Convergent Validity Employee Performance Compensation Job Placement Recruitment KK1 0,880 KK10 0,941 KK11 0,910 KK2 0,927 KK3 0,910 KK4 0,936 KK5 0,940 KK6 0,948 KK7 0,946 KK8 0,942 KK9 0,944 KOM1 0,932 KOM2 0,953 KOM3 0,862 KOM4 0,889 KOM5 0,931 KOM6 0,922 KOM7 0,927 PK1 0,949 PK2 0,892 PK3 0,963 PK4 0,943 PK5 0,927 PK6 0,964 Alfians Nugraha1, Dian Indiyati2 587 Employee Performance Compensation Job Placement Recruitment PK7 0,944 PK8 0,895 R1 0,914 R10 0,866 R2 0,902 R3 0,932 R4 0,955 R5 0,941 R6 0,926 R7 0,934 R8 0,913 R9 0,922 Note: R : Recruitment PK: Job Placement KOM : Compensation KK: Employee Performance Discriminant validity of the indicator can be seen in the cross loading between the indicator and its construction. The Model is said to be good if each construct AVE value greater than 0.50 (Ghozali dan Latan, 2020). The following are the results of Discriminant validity testing on variables of recruitment, job placement, compensation and employee performance. Table 2. Fornell-Larcker Criterion Variable Employee Performance Compensati on Job Placement Recruitmen t Recruitment 0,930 Job Placement 0,937 0,917 Compensation 0,935 0,947 0,935 Employee Performance 0,979 0,933 0,958 0,921 The loading value of each indicator item on its construction is greater than the cross loading value and has a value greater than 0.50. Thus, it can be concluded that all constructs or latent variables already have good discriminant validity, where in the indicator block the construct is better than other block indicators. Reliability test is done to prove the accuracy, consistency and precision of the instrument in measuring the construct, to measure the reliability of a construct with reflexive indicators can be done in two ways, is with Cronbach's Alpha and Composite Reliability (Ghozali dan Latan, 2020). American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 588 Table 3. Construct Reliability Variable Cronbach's Alpha rho_A Composite Reliability AVE Recruitment 0,984 0,985 0,986 0,864 Job Placement 0,968 0,969 0,974 0,841 Compensation 0,979 0,981 0,982 0,874 Employee Performance 0,980 0,981 0,982 0,848 Construct Reliability test results with the acquisition of cronbach alpha value of 0.984 on recruitment variables, 0.968 on job placement variables, 0.979 on compensation variables and 0.980 on employee performance variables. Construct is declared reliable if the value of composite reliability and cronbach alpha above 0.70. Then it can be concluded that the entire variable is declared reliable. The construct is declared reliable if the composite reliability and cronbach alpha values are above 0.70. b. Inner Model Evaluation Structural Model or inner model is a model used to measure the relationship or strength of estimates between latent variables or constructs based on substantive theory. In the structural model assessment, R-Square assessment for each endogenous latent variable as the predictive power of the structural model is first performed. R-Square values of 0.75, 0.50 and 0.25 can be concluded that the model is strong, moderate and weak (Ghozali dan Latan, 2020). Table 4. R-Square R Square R Square Adjusted Employee Performance 0,965 0,965 The value of R-Square obtained by 0,965 is included in the strong or influential model. These results show that recruitment, job placement and compensation can explain employee performance variables. In this case the amount of influence of recruitment, job placement and compensation of 0.965 or 96,5% can explain employee performance variables and the rest is influenced by other variables not examined in this study. The Q-square measures how well the observed values are produced by the model and also the estimation of its parameters. If the value of Q2 is 0.02 (weak model), 0.15 (moderate), and 0.35 (strong) (Ghozali dan Latan, 2020). Here are the results of Predictive Relevance on each variable. Table 4. Predictive Relevance Variable SSO SSE Q² Employee Performance 2684,000 457,691 0,829 Compensation 1708,000 369,160 0,784 Job Placement 1952,000 328,442 0,832 Alfians Nugraha1, Dian Indiyati2 589 Recruitment 2440,000 467,803 0,808 The value of Q2 > 0 is equal to 0.829 on employee performance variables, 0.784 on compensation variables, 0.832 on job placement variables and 0.808 on recruitment variables, this shows the model has a strong predictive relevance. F-square test is done to determine the goodness of the model. F-square values of 0.02, 0.15 and 0.35 can be interpreted whether the latent variable Predictor has a weak, medium, or large influence on the structural level (Ghozali, 2015). Table 5. F Square Variable Employee Performance Compensation 0,195 Job Placement 0,080 Recruitment 1,907 The value of f-square on the recruitment variable is 1.907 which means it has a strong influence (High Effect) on employee performance, on the placement variable of 0.080 which means it has a weak influence (Low Effect) on employee performance and on the compensation variable of 0, 195 which means it has a medium effect on employee performance. Standardized Root Mean Square Residual (SRMR) is the average of covariance residues, based on the transformation of the sample covariance matrix and the predicted covariance matrix into a relationship Matrix. If the number obtained is less than 0.10 is considered appropriate (Henseler et al., 2014). SMRS output results in the study are as follows. Table 6. Uji Model Fit Saturated Model Estimated Model SRMR 0,043 0,043 d_ULS 1,241 1,241 d_G 5,832 5,832 Chi-Square 5055,679 5055,679 NFI 0,551 0,551 Based on the table above it can be seen that the value of SRMR 0.043 so that the model is appropriate or has met the criteria of goodness of fit model. c. Bootstraping This study uses a significance level of 5% so that the t-value used is 1.96 (Ghozali dan Latan, 2020). Intended to find a significant influence between the variables of recruitment, job placement and compensation to employee performance variables by examining the path coefficients indicating the coefficients of parameters and the value of statistical significance T. The significance of the following parameters is estimated to give an idea of the correlation between the variables of the study. American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 590 Table 7. Paht Coefficient Hypothesis Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P Values Compensation -> Employee Performance 0,268 0,268 0,096 2,785 0,005 Job Placement -> Employee Performance -0,216 -0,204 0,106 2,037 0,042 Recruitment -> Employee Performance 0,936 0,924 0,098 9,507 0,000 1) Recruitment variables have a positive and significant effect on employee performance. This is evidenced by the value of T statistics > t value is (2.923>1.96) and obtain the value of P values < 0.05 is (0.003<0.05), so it can be said that Ho is rejected and Ha/H1 is accepted. 2) Work placement variables have a positive and significant effect on employee performance. This is evidenced by the value of T statistics > T value is (3.895>1.96) and obtain the value of P values < 0.05 is (0.000<0.05), so it can be said that Ho is rejected and Ha/H2 is accepted. 3) Compensation has a positive and significant effect on employee performance. This is evidenced by the value of T statistics > t value is (4.415>1.96) and obtain the value of P values < 0.05 is (0.000<0.05), so it can be said that Ho is rejected and Ha/H3 is accepted. Figure 1. Confirmatory Factor Analysis Diagram for Research construction Alfians Nugraha1, Dian Indiyati2 591 Than, to test hypothesis 4 is done through bootstrapping testing on the output of Specific Indirect Effects as follows. Table 7. Output Specific Indirect Effects Hypothesis Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P Values Recruitment-> Job Placement-> Compensation-> Employee Performance 0,246 0,246 0,090 2,727 0,006 The value of T statistics > t value is (2.727>1.96) and obtain the value of P values < 0.05 is (0.006<0.05), so it can be said that Ho is rejected and Ha/H4 is accepted. Discussion a. The Effect Of Recruitment On Employee Performance Hasna Medika Group Based on the test results that recruitment variables have a positive and significant effect on employee performance. This is evidenced by the value of T statistics > T value is (9.507>1.96) and obtain the value of P values < 0.05 is (0.000<0.05). It can be concluded that recruitment has an effect on employee performance in Hasna Medika Group. In seeing how much the influence of recruitment on employee performance is obtained from the F-square value of the recruitment variable of 1.907 which means it has a strong influence (High Effect) on employee performance. In line with previous research by (Aldhuhoori et al., 2022) which aimed to determine the effect of recruitment and selection on employee performance at state universities, which showed that recruitment and selection had a positive effect on employee performance, this study also revealed that the selection of employees who have the skills and training needed for certain jobs, has resulted in efficiency in the workplace. The interpersonal skills of employees also have an effect on the timeliness of work, which shows that employees can complete tasks on time. The results of correlation analysis showed a strong and positive relationship between recruitment and selection with employee performance. Findings from the analysis revealed that the recruitment and selection process will result in a change of 0.274 or 27.4% of employee performance. This confirms the importance of effective recruitment and selection practices in improving employee performance. In addition, previous research (Aziz, 2017) shows that recruitment has a positive and significant effect on employee performance. This influence is caused by the recruitment process is done in a structured manner and in accordance with the job specification, based on the job description prepared through Job Analysis. The right process allows the company to get employees who have competencies that match the needs of the job. Thus, employees are able to carry out their duties and responsibilities according to company expectations and standards, which ultimately results in optimal performance. b. The Effect Of Job Placement On Employee Performance Hasna Medika Group American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 592 Based on the test results that the variable placement of work has a positive and significant effect on employee performance. This is evidenced by the value of T statistics > t value is (2.037>1.96) and obtain the value of P values < 0.05 is (0.042<0.05). It can be concluded that job placement affects the performance of employees in Hasna Medika Group. In seeing how much influence the placement of work on employee performance is obtained from the value of f-square on the variable placement of work of 0.080 which means it has a weak influence (Low Effect) on employee performance. This is supported by research (Aldilaningsari, 2014), which found that job placement that pays attention to the suitability of knowledge, abilities, and skills has a positive and significant effect on employee performance. With a good placement system, companies can achieve maximum productivity. Another study conducted by (Abram, Tatimu dan Rumawas, 2022) based on the results of data analysis using SmartPLS, the results show that placement has a positive but not significant effect on employee performance. Work involvement has a positive and significant effect on employee performance, this proves that overall job placement indicators such as education, work knowledge, work skills and work experience play an important role in employee performance. c. The Effect Of Compensation On Employee Performance Hasna Medika Group Based on the test results that the variable compensation has a positive and significant effect on employee performance. This is evidenced by the value of T statistics > t value is (2.785>1.96) and obtain the value of P values < 0.05 is (0.005<0.05). It can be concluded that compensation affects the performance of employees in Hasna Medika Group. In seeing how much the effect of compensation on employee performance is obtained from the value of f- square on the variable compensation of 0, 195 which means it has a medium effect on employee performance. Research (Aspita, M., Sugiono, 2018) supports these findings, by showing that financial compensation has a significant positive effect on employee performance. An adequate compensation system increases job satisfaction, which in turn encourages employees to maintain consistently high performance. In addition, research conducted by (Anton, 2020) shows that compensation has a positive and significant effect on employee performance. To improve employee performance and overcome the decline in performance, which needs to be considered one of them is employee job satisfaction. One important step is to provide appropriate compensation according to the factors that affect employee satisfaction and expectations. By ensuring that the compensation provided is in line with the needs and expectations of employees, it is expected to increase motivation, productivity and ultimately, the overall performance of employees in the work environment. In addition, it is also important to conduct regular surveys or discussions with employees to understand more deeply about the factors that affect employee satisfaction. d. Effect of recruitment, Job Placement and compensation on the performance of Hasna Medika Group employees Alfians Nugraha1, Dian Indiyati2 593 Based on the test results, it was found that the variables of recruitment, job placement and compensation have a positive and significant effect simultaneously on employee performance. This is evidenced by the value of T statistics > T value is (2.727>1.96) and obtain the value of P values < 0.05 is (0.006<0.05), so it can be said that recruitment, Job Placement and compensation simultaneously affect the performance of employees Hasna Medika Group. In this case the amount of influence of recruitment, job placement and compensation of 0.965 or 96.5% can explain employee performance variables and the rest is influenced by other variables that are not studied in this study. Recruitment, job placement, and compensation management are integral parts of human capital management, which aims to optimally develop human resources to improve the performance of healthcare workers. As stated in Indiyati's (2018) research, human capital is the intangible knowledge possessed by individuals. Based on this statement, the researcher formulated human capital management that aligns with the observed phenomena, stating that effective recruitment ensures that healthcare workers recruited by Hasna Medika Group possess the knowledge, skills, and attitudes aligned with organizational needs, in accordance with the definition of human capital management, which includes education, competencies, soft skills, and positive attitudes such as discipline and responsibility. Proper job placement will place Hasna Medika Group healthcare workers in positions that match their expertise and competencies, thereby maximizing the potential of human capital to improve performance. Additionally, fair and adequate compensation is an important motivator in HCM to retain and improve the performance of healthcare workers, as good compensation supports a competitive attitude, loyalty, and high work ethic. In line with previous research (Muhammad, 2020) which aimed to analyze the effect of recruitment, job placement, and compensation on the performance of PT Indoturbine Jakarta Pusat employees, using primary data obtained from the distribution of questionnaires to 116 employees and analyzed using multiple linear regression analysis methods, the results showed that recruitment, job placement, and compensation simultaneously had a positive and significant effect on the performance of PT Indoturbine Jakarta Pusat employees. In addition, previous research (Casriyanti, 2025) the results of this study showed that: (1) variables of the recruitment process affect employee performance (2) variables of employee placement do not affect employee performance (3) variables of compensation affect employee performance (4) variables of the recruitment process, employee placement and compensation simultaneously affect employee performance. CONCLUSION This study was conducted using the Structural Equation Modelling (SEM) statistical method with a Partial Least Square (PLS) approach to answer research questions regarding the influence of recruitment, job placement, and compensation on the performance of Hasna Medika Group employees. Based on the analysis and discussion in the previous chapter, the conclusion of this study is that recruitment has a positive and significant influence on the performance of healthcare workers within the Hasna Medika Group. The dominant influence is shown by the recruitment American Journal of Economic and Management Business Vol. 4 No. 5 May 2025 594 source dimension and falls into the high category, meaning that the more open the recruitment source is in attracting potential employees from outside the company, the higher the influence of the recruitment variable on employee performance. Job placement has a positive and significant influence on the performance of healthcare workers within the Hasna Medika Group. The dominant influence is shown by the work skill dimension and falls into the high category, meaning that the higher the social skills with colleagues, the higher the influence of the job placement variable on employee performance. Compensation has a positive and significant influence on the performance of healthcare workers within the Hasna Medika Group. The dominant influence is shown by the direct compensation dimension and falls into the high category, meaning that when the company provides fair wages to employees, the higher the compensation variable, the greater its influence on employee performance. Recruitment, placement, and compensation simultaneously influence the performance of healthcare workers within the Hasna Medika Group. Based on the conclusions explained above regarding the Influence of Recruitment, Job Placement, and Compensation on the Performance of Healthcare Workers at Hasna Medika Group, the author provides several suggestions that can be used to help improve the performance of healthcare workers at Hasna Medika Group. Combining internal and external recruitment sources means using external sources as a supplement to internal recruitment. This is done to maintain the motivation and development of existing healthcare workers. Providing good work equipment is an investment that can improve the effectiveness and performance of healthcare workers. Hasna Medika Group is advised to increase the availability of work equipment, as this helps healthcare workers complete tasks more efficiently and productively. Some healthcare workers at Hasna Medika Group feel that their salaries are not commensurate with the difficulties and responsibilities of their jobs. This is related to salary adjustments based on the Provincial and Regency/City Minimum Wage. In addition to salary adjustments, Hasna Medika Group can also increase non-salary incentives, such as health benefits, training, and adequate work facilities, to improve the welfare of healthcare workers. BIBLIOGRAPHY Abram, c. t., Tate, v. And rumawas, w. (2022) "preparation for placement and work placement on employee performance at bank rakyat indonesia siau unit," Faculty of social and Political Sciences sam ratulangi University, 3(3), p. 240–245. 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