Bayu Permana Wibowo, Prihatin Lumbanraja, R. Hamdani Harahap
Master of Management Science Program, Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia
A B S T R A C T
Employee performance is a key element in
realizing organizational goals and optimizing public services. The Regional
Personnel and Human Resource Development Agency (BKPSDM) of Medan City, as a
government agency responsible for managing civil servants (ASN), needs to
continuously improve employee performance, particularly in the face of
bureaucratic reform challenges. This study aims to analyze the effect of soft
skills, hard skills, and compliance on employee performance at BKPSDM Medan
City, with employee self-awareness as an intervening variable. This research is
associative in nature with a quantitative approach. Primary data were collected
through questionnaires. The analytical method applied was descriptive
statistical analysis and Structural Equation Modeling (SEM) with the Partial
Least Squares (PLS) approach. The research population comprised all ASN
employees working in 5 divisions at BKPSDM Medan City, totaling 72 employees,
with a census (total sampling) technique. Results indicate that hard skills
have a positive and significant direct effect on both self-awareness and
employee performance. Compliance also positively and significantly affects both
self-awareness and employee performance. Self-awareness has a positive and
significant effect on employee performance. However, soft skills show a
positive but non-significant effect on both self-awareness and employee
performance. In terms of mediation, self-awareness significantly mediates the
effect of hard skills and compliance on employee performance, but does not
significantly mediate the effect of soft skills on employee performance.
INTRODUCTION
Human
Resources (HR) are the most important asset that determines the sustainability
and competitiveness of an organization. Without competent and quality HR,
organizations will have difficulty in achieving their strategic goals. HR
serves as the primary driver of company operations—from strategic planning,
work execution, to result evaluation. In an increasingly dynamic business
environment, organizations are required to have adaptive, innovative, and
highly motivated workforces to compete in a competitive market (Armstrong,
2020).
In
the context of regional autonomy, the role of BKPSDM Medan City has become
increasingly strategic, as this agency serves as the backbone of ASN management
in the region. Credibility and effectiveness of BKPSDM are not only influenced
by programs and policies, but also by the quality of services provided in the
personnel administration process. The phenomenon underlying this research is
the significant gap between the competencies possessed by employees and their
implementation in meaningfully improving actual performance.
Based
on internal observations and evaluations conducted at BKPSDM Medan City,
although employees have adequate technical and non-technical knowledge, their
ability to serve the public, collaborate in teams, and communicate effectively
with stakeholders still needs improvement. The internal audit of 2024 revealed
error rates in personnel data processing exceeding the maximum tolerance set in
service standards. Input errors, reporting inaccuracies, and lack of data
analytical ability were recurring issues.
This
phenomenon highlights the critical role of self-awareness as a factor
that bridges the gap between competency ownership and its implementation in
actual performance. Goleman (2020) explains that self-awareness is the
foundation of emotional intelligence, encompassing the ability to recognize and
understand one's own emotions, strengths and limitations, and the impact of
one's behavior on others and work outcomes. Thus, self-awareness becomes
an enabler allowing competencies to be translated into effective work
behaviors.
Previous
research has demonstrated mixed findings on the relationships between soft
skills, hard skills, compliance, and employee performance. Ibrahim et al.
(2017) found that employees with good communication, teamwork, and leadership
skills show higher performance. However, studies by Arnu and Sofiyanti (2019)
and Putri et al. (2023) found that soft skills do not significantly influence
employee performance, highlighting the contextual nature of these
relationships. Similarly, Pratama et al. (2022) and Wahyuni (2020) found a
significant positive effect of hard skills on performance, whereas Afriandi
(2023) and Syaiful (2018) found non-significant effects.
Given
these research gaps, this study aims to: (1) analyze the direct effects of soft
skills, hard skills, and compliance on employee performance; (2) analyze the
effects on self-awareness; (3) examine the mediating role of self-awareness;
and (4) contribute empirical evidence from the Indonesian public sector
bureaucratic context, particularly in personnel management agencies.
LITERATURE REVIEW
Employee
Performance
Employee
performance is the level at which an individual fulfills the requirements of a
job relevant to the role they hold (Robbins & Judge, 2022). Armstrong
(2020) affirms that employee performance is the primary foundation of
organizational achievement, because without effective individual performance,
management strategies and systems will not run optimally. Performance
dimensions used in this study include quality of work, quantity of work,
timeliness, effectiveness, and cooperation (Mangkunegara, 2019).
Soft
Skills
Soft
skills are non-technical skills related to personal attributes, behaviors, and
interpersonal abilities that determine how a person interacts, cooperates, and
solves problems (Klaus, 2007). Robles (2012) states that soft skills such as
creativity and adaptability are keys to surviving and thriving in the modern
workplace. Dimensions include: communication in service, teamwork, empathy and
service orientation, and problem-solving (Robles, 2012).
Hard
Skills
Hard
skills are technical abilities that are specific, measurable, and teachable
through formal education, training, or direct experience, forming the basis for
performing certain professional tasks (Ledford, 2018). Armstrong (2021)
explains that hard skills have three components: knowledge (theoretical
understanding), skill (practical ability), and performance standard
(understanding of the quality level to be achieved). Dimensions include:
personnel data management, information systems and technology, analytical
skills, and report writing (Strang, 2023).
Compliance
Compliance
is adherence to a set of rules, standards, regulations, policies, and
applicable procedures—both internal and external—carried out to avoid
punishment, build reputation, and ensure clean and sustainable operations
(Nielsen & Parker, 2012). Tyler's Compliance Theory (1990) emphasizes that
compliance with formal authority and rules is an important mechanism for
maintaining order, legitimacy, and organizational effectiveness, particularly
in the bureaucratic context. Dimensions include: regulatory compliance, SOP
compliance, ethics and integrity, good governance principles, and work
discipline.
Self-Awareness
Self-awareness
is the ability to recognize, understand, and objectively evaluate oneself,
including character, emotions, thoughts, strengths, weaknesses, and their
impact on others (Goleman, 2020). Eurich (2018) differentiates internal
self-awareness (clarity about values, goals, reactions, and
strengths/weaknesses) from external self-awareness (understanding how others
perceive oneself). Carden et al. (2022) identified key dimensions: cognitive
awareness, emotional awareness, openness to criticism, and consistency in
competency implementation.
Research
Hypotheses
Based
on the theoretical framework and empirical studies reviewed, the following
hypotheses are proposed:
H1: Soft
skills have a positive and significant effect on employee performance
H2: Hard
skills have a positive and significant effect on employee performance
H3:
Compliance has a positive and significant effect on employee performance
H4:
Self-awareness has a positive and significant effect on employee performance
H5: Soft
skills have a positive and significant effect on self-awareness
H6: Hard
skills have a positive and significant effect on self-awareness
H7:
Compliance has a positive and significant effect on self-awareness
H8:
Self-awareness mediates the effect of soft skills on employee performance
H9:
Self-awareness mediates the effect of hard skills on employee performance
H10:
Self-awareness mediates the effect of compliance on employee performance
MATERIALS & METHODS
Research
Design
This
study is associative in nature with a quantitative approach (Sugiyono, 2019).
It was conducted at BKPSDM Medan City, located at the Medan City Hall, Jl.
Kapt. Maulana Lubis No. 2, Medan, from August 25 to November 1, 2025. The
research population comprised all 72 ASN employees working across 5 divisions.
Due to the limited population size, a census (total sampling) technique was
applied, making all 72 employees the respondents.
Variables
and Measurement
The
study examined five variables: (1) Soft Skills (X1) — non-technical
competencies including communication, teamwork, empathy, and problem-solving;
(2) Hard Skills (X2) — technical competencies covering personnel data
management, information systems mastery, analytical ability, and report
writing; (3) Compliance (X3) — adherence to regulatory, SOP, ethics,
governance, and discipline standards; (4) Self-Awareness (Z, intervening) —
employees' awareness of their competencies and the importance of consistently
implementing them; and (5) Employee Performance (Y) — work results in terms of
quality, quantity, timeliness, effectiveness, and cooperation.
All
variables were measured using a 5-point Likert scale (1 = Strongly Disagree to
5 = Strongly Agree). Validity testing used Confirmatory Factor Analysis (CFA)
with loading factor criteria > 0.70, and reliability was assessed using
Cronbach's Alpha and composite reliability with a threshold of > 0.70.
Data
Analysis
Data were analyzed using descriptive statistical analysis and Structural Equation Modeling (SEM) with Partial Least Squares (PLS) approach using SmartPLS 4 software. PLS-SEM was chosen because it does not require multivariate normality assumptions and is suitable for small to medium sample sizes (Ghozali, 2016). Outer model evaluation included convergent validity (AVE > 0.50), discriminant validity (HTMT < 0.90), and reliability (Cronbach's Alpha and ρ_c > 0.70). Inner model evaluation included R² coefficient of determination and f² effect size. Hypothesis testing was conducted through bootstrapping with a significance criterion of p-value < 0.05.
RESULT
Respondent
Characteristics
A
total of 72 respondents participated in this study. The majority of respondents
were female (58.3%), with the most common age group being 35–40 years (31.9%).
Most respondents held an undergraduate degree (S1) (52.8%), and the most common
tenure category was 6–10 years (30.6%).
Outer
Model Evaluation
Convergent
validity results showed that all loading factors exceeded 0.70, and all AVE
values exceeded 0.50, confirming that all constructs achieved adequate
convergent validity. Reliability results showed that all Cronbach's Alpha,
rho_a, and composite reliability values exceeded 0.70, indicating that all
constructs are reliable. Discriminant validity was evaluated using HTMT ratios,
and all values were below 0.90 (the highest being Kinerja
Pegawai–Self-Awareness at 0.847), confirming that each construct is
sufficiently distinct. Table 1 presents the AVE and reliability results.
Table
1. Convergent Validity (AVE) and Reliability Results
|
Construct |
AVE |
Cronbach's Alpha |
rho_a |
Composite Reliability |
Decision |
|
Soft Skills |
0.562 |
0.921 |
0.931 |
0.934 |
Reliable
& Valid |
|
Hard Skills |
0.596 |
0.897 |
0.905 |
0.915 |
Reliable
& Valid |
|
Compliance |
0.538 |
0.904 |
0.916 |
0.918 |
Reliable
& Valid |
|
Self-Awareness |
0.574 |
0.933 |
0.937 |
0.942 |
Reliable
& Valid |
|
Employee Performance |
0.581 |
0.939 |
0.944 |
0.948 |
Reliable
& Valid |
Source:
SmartPLS 4 Data Processing, 2026
Inner
Model Evaluation (Coefficient of Determination)
The
R² value for Employee Performance was 0.774 (strong), meaning the model
explains 77.4% of the variation in employee performance. The R² value for
Self-Awareness was 0.623 (moderate), indicating that 62.3% of the variation in
self-awareness is explained by the predictor constructs. These results indicate
a strong explanatory power of the model, particularly for the dependent
variable of employee performance.
Hypothesis
Testing – Direct Effects
The
direct effect hypothesis testing results are presented in Table 2 below.
Table
2. Hypothesis Testing Results – Direct Effects
|
Relationship |
Original Sample (O) |
Sample Mean (M) |
STDEV |
T-Statistics |
P-Value |
Decision |
|
Soft Skills → Employee
Performance |
0.102 |
0.106 |
0.070 |
1.466 |
0.143 |
Rejected |
|
Hard Skills → Employee
Performance |
0.256 |
0.259 |
0.084 |
3.042 |
0.002 |
Accepted |
|
Compliance → Employee
Performance |
0.250 |
0.252 |
0.086 |
2.918 |
0.004 |
Accepted |
|
Self-Awareness →
Employee Performance |
0.441 |
0.437 |
0.095 |
4.642 |
0.000 |
Accepted |
|
Soft Skills →
Self-Awareness |
0.181 |
0.189 |
0.096 |
1.891 |
0.059 |
Rejected |
|
Hard Skills →
Self-Awareness |
0.482 |
0.478 |
0.089 |
5.404 |
0.000 |
Accepted |
|
Compliance →
Self-Awareness |
0.303 |
0.307 |
0.092 |
3.286 |
0.001 |
Accepted |
Source:
SmartPLS 4 Data Processing, 2026
Hypothesis
Testing – Indirect Effects (Mediation)
The
mediation hypothesis testing results are presented in Table 3.
Table
3. Hypothesis Testing Results – Indirect Effects (Mediation via Self-Awareness)
|
Mediation Path |
Original Sample (O) |
Sample Mean (M) |
STDEV |
T-Statistics |
P-Value |
Decision |
|
Soft Skills →
Self-Awareness → Employee Performance |
0.080 |
0.082 |
0.044 |
1.805 |
0.071 |
Rejected |
|
Compliance →
Self-Awareness → Employee Performance |
0.134 |
0.134 |
0.049 |
2.726 |
0.006 |
Accepted |
|
Hard Skills →
Self-Awareness → Employee Performance |
0.213 |
0.211 |
0.067 |
3.182 |
0.001 |
Accepted |
Source:
SmartPLS 4 Data Processing, 2026
DISCUSSION
Effect of
Soft Skills on Employee Performance (H1 Rejected)
Soft
skills showed a positive but non-significant effect on employee performance (β
= 0.102, p = 0.143), thus H1 is rejected. Within the framework of Herzberg's
Two-Factor Theory, interpersonal aspects such as friendliness and communication
ability may function as 'hygiene' factors that maintain a conducive work
atmosphere but do not necessarily drive performance-based outcomes. At BKPSDM,
where work success is largely determined by procedural compliance,
administrative precision, and technical accuracy, generic soft skills tend to
serve as supporting factors rather than primary determinants. This is
consistent with findings by Putri et al. (2023) and Arnu and Sofiyanti (2019),
and may be attributed to the predominantly administrative and procedural nature
of work in government personnel agencies.
Effect of
Hard Skills on Employee Performance (H2 Accepted)
Hard
skills showed a positive and significant effect on employee performance (β =
0.256, p = 0.002), thus H2 is accepted. BKPSDM's work character, which relies
heavily on personnel data processing, report preparation, and system-based
services, means that hard skills have a relatively direct influence on
performance when the job demands accuracy and process precision. This is
consistent with Pratama et al. (2022), Wahyuni (2020), and Succi & Canovi
(2020). The implication is that BKPSDM should prioritize strengthening hard
skills that are most critical to core work processes—particularly data
management standardization, document quality control, and systems literacy.
Effect of
Compliance on Employee Performance (H3 Accepted)
Compliance
showed a positive and significant effect on employee performance (β = 0.250, p
= 0.004), thus H3 is accepted. Tyler's Compliance Theory (1990) explains that
compliance with authority and formal rules is a crucial mechanism for
maintaining order and organizational effectiveness, particularly in
bureaucratic contexts. At BKPSDM, compliance with SOP—such as in mutation,
promotion, and civil servant recruitment processes—directly influences
performance by reducing procedural variations, minimizing maladministration
risks, and increasing consistency of service output. This aligns with Basri and
Rasyid (2023) and Kalatasik et al. (2024).
Effect of
Self-Awareness on Employee Performance (H4 Accepted)
Self-awareness
showed a positive and significant effect on employee performance (β = 0.441, p
= 0.000), with the largest f² effect size (0.324), making it the most dominant
practical predictor of employee performance. This finding confirms that
self-awareness acts as the critical 'enabler' bridging competency ownership and
actual performance implementation at BKPSDM. Goleman's (2020) framework and
Eurich's (2018) distinction between internal and external self-awareness are
both supported. This is consistent with Sutton (2016), Saragih and Siahaan
(2021), and Darmarini et al. (2024).
Effect of
Soft Skills on Self-Awareness (H5 Rejected)
Soft
skills showed a positive but non-significant effect on self-awareness (β =
0.181, p = 0.059), thus H5 is rejected. Interpersonal skills do not always
automatically transform into intrapersonal awareness. In the bureaucratic
BKPSDM context, soft skills may manifest as role-based competencies such as
formal communication and service ethics, which run parallel—not necessarily
linearly—with deeper self-reflection. This is consistent with Dharma (2021) and
Sutrisno (2022).
Effect
of Hard Skills on Self-Awareness (H6 Accepted)
Hard
skills showed the strongest positive and significant effect on self-awareness
(β = 0.482, p = 0.000, f² = 0.343), thus H6 is accepted. Bandura's
Self-Efficacy Theory (1997) provides a strong theoretical grounding: mastery
experience succeeding in technical tasks provides employees with objective
feedback about the quality of their work (correct/incorrect,
precise/imprecise), thereby fostering self-awareness about competencies,
limitations, and required quality standards. In the technical-administrative
context of BKPSDM, this dynamic is particularly strong. From a human resource
management perspective, these findings confirm that investing in technical
training (hard skills) is not merely about enhancing expertise, but rather a
crucial tool in performance management and employee development (Susila et al., 2024). With
increased self-awareness through the mastery of hard skills, employees within
the BKPSDM can objectively assess their own skill gaps. From a managerial
standpoint, this facilitates leaders in conducting talent mapping and designing
career development programs based on real needs, while also motivating
employees to proactively take responsibility for improving their technical
capabilities to achieve high standards of service quality.
Effect of
Compliance on Self-Awareness (H7 Accepted)
Compliance
showed a positive and significant effect on self-awareness (β = 0.303, p =
0.001), thus H7 is accepted. Kelman's (2019) three-level compliance theory
explains that internalization—the highest level—occurs when employees genuinely
believe in the rules. Employees who deeply understand and are committed to
compliance develop stronger self-reflection on their own work behavior and
responsibility. This supports the pathway from compliance to internalized
self-awareness.
Mediation
Effects (H8 Rejected, H9 and H10 Accepted)
Self-awareness significantly mediates the effect of hard skills (indirect effect = 0.213, p = 0.001) and compliance (indirect effect = 0.134, p = 0.006) on employee performance, supporting H9 and H10. This confirms that when employees possess strong technical competencies and compliance understanding, and simultaneously develop self-awareness through objective work feedback and internalized values, performance improves more substantially. However, self-awareness does not significantly mediate the effect of soft skills (indirect effect = 0.080, p = 0.071), rejecting H8, consistent with the non-significant direct paths from soft skills. These findings provide critical insights into how self-awareness serves as a pivotal mechanism that transforms technical proficiency and regulatory compliance into superior individual performance (Marlina et al., 2026). The evidence suggests that providing employees with hard skills and procedural knowledge is insufficient unless accompanied by a management system that fosters objective self-reflection and the internalization of corporate values. These results are congruent with the findings of Reni (2026), who argues that the efficacy of human capital development in modern organizations is significantly moderated by an individual’s psychological readiness to align their technical capabilities with organizational expectations. Therefore, management practitioners should strategically integrate self-awareness development into their performance management systems to ensure that competency gains are effectively translated into sustainable productivity.
CONCLUSION
This
study concludes: (1) Soft skills have a positive but non-significant effect on
both employee performance and self-awareness at BKPSDM Medan City; (2) Hard
skills have a positive and significant effect on both employee performance and
self-awareness; (3) Compliance has a positive and significant effect on both
employee performance and self-awareness; (4) Self-awareness has the most
dominant positive and significant effect on employee performance; (5)
Self-awareness significantly mediates the effects of hard skills and compliance
on employee performance, but does not significantly mediate the effect of soft
skills.
The
main theoretical contribution of this study is the empirical confirmation that
self-awareness functions as a critical intervening mechanism in the
competency-performance relationship within a public sector bureaucratic
context. Practically, BKPSDM is recommended to: (a) reorient soft skills
training from generic service etiquette to performance-based operational soft
skills; (b) strengthen hard skills most critical to core work processes; (c)
transform compliance from administrative obligation to organizational quality
culture; and (d) develop mechanisms that strengthen self-awareness through
routine feedback, work reflection, and coaching from supervisors.
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