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All Journal International Journal of Management Research and Economics
Jhon Gilbert Lumban Raja
Institut Bisnis dan Komputer Indonesia
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Effect of Compensation and Work Motivation on Employee Performance at CV Mulia Abadi Jhon Gilbert Lumban Raja; Lasman Eddy Bachtiar; Nilka Sartiani Zega
International Journal of Management Research and Economics Vol. 4 No. 4 (2026): November : International Journal of Management Research and Economics
Publisher : Institut Teknologi dan Bisnis (ITB) Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54066/ijmre-itb.v4i4.5133

Abstract

Employee performance determines the smoothness of operations and the quality of service in a company, so the factors that influence it need to be tested empirically. This study aims to analyze the effect of compensation and work motivation, both partially and simultaneously, on employee performance at CV Mulia Abadi. The study used a quantitative approach with primary data collected through a Likert-scale questionnaire administered to 46 employees, who made up the entire population. The data were analyzed using multiple linear regression in SPSS 27 after the instrument was found to be valid and reliable and the model satisfied the classical assumption tests. The results show that compensation has a positive and significant effect on employee performance (B = 0.785; β = 0.803; p < 0.001). Work motivation also has a positive and significant effect (B = 0.231; β = 0.204; p = 0.001). Simultaneously, compensation and work motivation have a significant effect on employee performance (F = 416.556; p < 0.001), with a coefficient of determination (R²) of 0.951, meaning that the model explains 95.1% of the variation in employee performance. The standardized beta coefficients indicate that the relative contribution of compensation is larger than that of work motivation. These findings suggest that the company should manage compensation fairly and transparently and sustain work motivation through clear targets, feedback, and recognition of employee contributions.
Co-Authors BACHTIAR, LASMAN EDDY Nilka Sartiani Zega