International Journal of Economy, Education and Entrepreneurship (IJE3)
Vol. 5 No. 2 (2025): International Journal of Economy, Education and Entrepreneurship

THE INFLUENCE OF LEADERSHIP AND FINANCIAL COMPENSATION ON EMPLOYEE PERFORMANCE WITH WORK ENVIRONMENT AS A MEDIATING VARIABLE AT THE PANDEGLANG REGIONAL REVENUE OFFICE

Supriatih, Ratih (Unknown)
Rustandi, Tata (Unknown)
Permana, Angrian (Unknown)



Article Info

Publish Date
08 Aug 2025

Abstract

The purpose of this study is to identify the direct and indirect effects of these variables on employee performance through the work environment. The method used is Structural Equation Modeling - Partial Least Squares (SEM-PLS) with a quantitative approach, involving 90 respondents from 97 ASN population. The results showed that leadership has a positive and significant influence on the work environment (β=0.310; t=2.904; p=0.004), and affects employee performance (β=0.287; t=3.186; p=0.002). Financial compensation has a significant positive effect on the work environment (β=0.664; t=6.442; p=0.000), and affects employee performance (β=0.271; t=2.226; p=0.026). The work environment itself has a positive and significant influence on work productivity (β=0.432; t=3.559; p=0.000). In addition, leadership and incentives have a significant effect on employee performance through the work environment, with coefficient values β = 0.134 (t=2.124; p=0.034) and β = 0.286 (t=3.270; p=0.001).This research provides important insights for improving the performance of ASN employees of the Regional Revenue Agency (DISPENDA) of Pandeglang Regency by emphasizing the importance of humanist leadership, increasing financial compensation and making the work environment better. These strategies can create more productive employee performance.

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Journal Info

Abbrev

home

Publisher

Subject

Economics, Econometrics & Finance Education Other

Description

International Journal of Economy, Education and Entrepreneurship (IJE3) is a peer-refereed open-access international journal which has been established for the dissemination of state-of-the-art knowledge in the field of Economy and Education. Starting from 2021, IJE3 would be published Three times ...