Economics and Business Journal
Vol. 4 No. 3 (2026): March

The Influence Of Compensation And Benefits, Work Environment, And Employee Demographics On Employee Performance Mediated By Motivation In Paper Manufacturing Companies

Rachman, Tutut Arif (Unknown)
Winarno, Agung (Unknown)
Siswanto, Ely (Unknown)



Article Info

Publish Date
18 Apr 2026

Abstract

This study aims to analyze the influence of compensation and benefits, work environment, and employee demographics on employee performance mediated by motivation in quantitative manufacturing companies using a survey method. The research population was all employees, with a sample of 104 employees selected using purposive sampling techniques. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study's results indicate that compensation and benefits have a positive and significant impact on employee performance and motivation. The work environment has a positive and significant effect on motivation, but it does not have a direct effect on employee performance. Employee demographics have no significant effect on employee motivation or performance. Motivation has a positive and significant effect on employee performance and has been shown to mediate the relationship between compensation and benefits, as well as the work environment, on employee performance. This research provides practical implications for company management in improving employee performance through improved compensation systems, conducive work environments, and increased work motivation.

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Journal Info

Abbrev

go

Publisher

Subject

Economics, Econometrics & Finance

Description

Economics and Business Journal (ECBIS) | ISSN (e): 2963-7589 is an international peer-reviewed, open access scientific journal dedicated to the advancement and dissemination of research results that support high-level research in the fields of Economics, Management and Business, this journal ...