This study aimed to analyze how compensation and the work environment affect employee performance at an electricity company in Batam. Employee performance (Y) was the dependent variable, while compensation (X1) and the work environment (X2) were the independent variables. The study included all 83 employees of the electricity company in Batam. Saturated sampling (total sampling) was used, meaning the entire population was included as the sample. A descriptive and quantitative research approach was used. For data analysis, the SEM-PLS method was employed, utilizing the SmartPLS program. The results indicated that both compensation and the work environment had a significant and positive effect on employee performance at the electricity company in Batam.
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