International Journal of Economics Development Research (IJEDR)
Vol. 6 No. 5 (2025): International Journal of Economics Development Research (IJEDR)

Compensation as an Economic Driver in Enhancing Employee Performance Through Work Discipline: A Study of Logistic Industry

Gautama, A.A Ngurah Restu (Unknown)
Putra, Kadek Budi Adnyana (Unknown)



Article Info

Publish Date
30 Sep 2025

Abstract

This study aims to analyze the effect of work discipline on employee performance with compensation as a moderating variable at PT Indah Logistik Cargo, Denpasar Branch. In a competitive business environment, employee performance is a key driver of organizational success and is influenced by various internal factors, one of which is work discipline. However, the strength of this influence may be amplified or weakened by other variables such as compensation. This research employs a quantitative approach, with data collected through questionnaires distributed to 45 employees. The data were analyzed using Structural Equation Modeling (SEM) based on the Partial Least Squares (PLS) method. The findings reveal that work discipline has a positive and significant effect on employee performance. Compensation also shows a positive and significant effect on performance and serves as a moderating variable that strengthens the relationship between work discipline and employee performance. The effect of work discipline becomes more pronounced when supported by a fair and appropriate compensation system. These findings suggest that companies should consistently enforce work discipline and ensure equitable compensation as strategic efforts to enhance employee performance. This study is expected to serve as a reference for human resource management policy development, particularly in the logistics service sector.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...