The influence of compensation and work environment on employee performance with intervening of work motivation

Abstract

This research aims to determine the effect of compensation and work environment on employee performance. The focus of the research used is compensation and work environment variables on performance through work motivation. The population in this study were all employees of PT JIP. The sampling technique used was a sample using the Slovin method so that a sample of 66 respondents was obtained. Data was collected using a questionnaire. The data analysis method used is Partial Least Square Structural Equation Modeling analysis. The research results show that: Compensation has a positive and significant effect on work motivation, Work environment has a positive and significant effect on work motivation, Compensation has a positive and significant effect on performance, Work environment has a positive and significant effect on employee performance , Work motivation has a positive and significant effect on employee performance, Work motivation mediates the influence of compensation on employee performance, Work motivation does not mediate the influence of the work environment on employee performance. Managers need to pay attention to elements of the compensation package, such as salary, benefits, incentives, and career development opportunities, to ensure that employees feel valued and motivated to provide their best performance.