Employee Performance: The Role of Compensation and Work Motivation

Abstract

Employee performance is the result produced by individuals that is relevant to the tasks and roles assigned, evaluated in terms of quality, quantity, and timeliness, and influenced by both internal and external factors. Compensation and work motivation are significant determinants of performance. This study aims to examine the effect of compensation and work motivation on employee performance at PT. PG Rajawali II Unit Jatitujuh Majalengka. The research employs descriptive and verification methods. The population in this study consists of permanent employees of PT. PG Rajawali II Unit Jatitujuh Majalengka, with a sample size of 102 respondents. The data collection method applied is a questionnaire. Instrument evaluation is conducted using validity and reliability testing. This study applies classical assumption tests, model feasibility tests (F-test), multiple linear regression, coefficient of determination (R²), and hypothesis testing (t-test) as analytical methods. The research findings reveal that “compensation has a positive and significant effect on employee performance, as does work motivation, which also has a positive and significant effect on employee performance.” This means that the higher the compensation provided, the better the employee performance, and the higher the work motivation, the better the employee performance will be.