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All Journal International Journal of Business and Quality Research
Sutoyo
STIE ABI Surabaya
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Effect Of Competence, Compensation, And Work Experience On Employee Performance Through Motivation At PT. Sentral Mandiri In Sidoarjo Koen Irianto Uripan; Sutoyo
International Journal of Business and Quality Research Vol. 4 No. 03 (2026): July - September, International Journal of Business and Quality Research (IJBQ
Publisher : Citakonsultindo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63922/ijbqr.v4i03.6210

Abstract

This study aims to analyze the effect of competence, compensation, and work experience on employee performance at PT. Sentral Mandiri in Sidoarjo, both directly and through work motivation as a mediating variable. The research employs a quantitative approach using explanatory research methods to explain causal relationships among variables. The research design is causal, focusing on testing the direct and indirect effects of independent variables on employee performance. The population of this study consists of all 89 employees of PT. Sentral Mandiri in Sidoarjo, and the entire population was used as the research sample through a census method. Primary data were collected using a Likert-scale questionnaire and analyzed using Partial Least Squares (PLS) with Smart PLS 3.0 software, as the research model is causal and recursive. The results indicate that competence, compensation, and work experience have a positive direct effect on employee performance. Competence contributes to enhancing employees’ knowledge, skills, and abilities, thereby improving their performance. Fair compensation encourages employee motivation and positively affects work outcomes, while work experience increases employees’ ability to face job challenges, leading to higher performance. In addition to the direct effects, work motivation was found to mediate the relationship between competence and compensation on performance, but it did not mediate the effect of work experience. In other words, improvements in competence and compensation not only directly impact performance but also indirectly enhance it through work motivation. Conversely, work experience directly affects performance, but work motivation does not serve as a significant mediator.
Co-Authors Koen Irianto Uripan