<![CDATA[Purpose: This study aims to analyze the effects of compensation and work discipline on employee performance through work motivation at the Palembang City Transportation Agency. Research Methodology: This study employed a quantitative correlational design involving 169 civil servant employees. A sample of 63 respondents was selected using simple random sampling, with the sample size determined using the Slovin formula at a 10% error rate. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 3.0. Results: Compensation did not significantly affect work motivation (p = 0.263), whereas work discipline had a significant positive effect (p < 0.001). Compensation significantly affected employee performance (p < 0.001), while the direct effect of work discipline was not significant (p = 0.639). Work motivation significantly affected employee performance (p = 0.001). The indirect effect of compensation through work motivation was not significant (β = 0.042, p = 0.249), whereas the indirect effect of work discipline was significant (β = 0.176, p = 0.007). Conclusions: Work motivation may mediate the relationship between work discipline and employee performance, but not the relationship between compensation and employee performance. These conclusions require confirmation after measurement validity is established. Limitations: The study involved a relatively small sample of civil servant employees from one agency, limiting generalizability. Contribution: This study provides insights into the potential mediating role of work motivation and offers practical considerations for improving human resource management through compensation policies and work-discipline strategies]]>
