The Influence of Work Environment and Incentives on Employee Performance through Motivation

Abstract

Optimal service for health service users is a necessity for the continuity of hospital operations. The determinant of service quality lies in employee performance. There are several factors that influence employee performance, including work environment, incentives and work motivation. This research aims to: examine the influence of the work environment and incentives on work motivation; examine the influence of the work environment, incentives and work motivation on employee performance; and examine the influence of the work environment and incentives on employee performance through motivation. The research population was 445 civil servant employees at Dr. Wahidin Sudiro Husodo Hospital. Determining the number of samples used the Hair formula, namely the number of indicators multiplied by 6 (23x6), so that a sample of 138 people was obtained. The sampling technique uses proportional random sampling. Meanwhile, data collection uses a questionnaire distributed to respondents. The data analysis technique uses SEM PLS. The research results show that: (1) work environment and incentives have a significant effect on motivation; (2) work environment, incentives and motivation have a significant effect on employee performance; and (3) work environment and incentives have a significant effect on employee performance through motivation. For this reason, if hospital management attempts to improve employee performance, this can be done by creating a conducive work environment and providing fair incentives accompanied by strengthening work motivation.