Impact of Human Resources Competency on Productivity: The case of SME's in Timor-Leste

Small and medium enterprises are one of the business groups that have high contribution to the national economy. Even with the development of the number of SME units able to generate jobs opportunity. Nevertheless, in term of quality SME’s are still considered lower than large companies therefore to improve the working quality, its necessary to solve human resources competence such skills, knowledge and abilities issues to improve the Productivity. This research was carried out aimed to know how the influence of skills, knowledge, abilities on the productivity is. This research was conducted with a quantitative approach. The population in this study was small and medium enterprises domiciled in Dili capital and the sampling technique used was simple random sampling. Data collection is done by distributing questionnaires to 250 units of small and medium-sized business owners. The measurement was using a Likert scale. And the data was analyzed using SPSS 23 version with simple and multiple regression analysis method. The results of the analysis conclude that skills(X1), knowledge(X2) and working ability(X3) are positive and significantly effect on labor productivity (y)