International Journal of Economics and Management Research
Vol. 5 No. 2 (2026): August : International Journal of Economics and Management Research

The Influence of Compensation and Work Discipline on Employee Performance Through Motivation as an Inter-vening Variable at the Food Security, Agriculture, and Fish-eries Office of Serang City




Article Info

Publish Date
18 Jun 2026

Abstract

This study examines the structural relationships among compensation, work discipline, motivation, and employee performance in the public sector. Motivated by issues such as suboptimal organizational performance, attendance problems, and compensation-related challenges, this research aims to analyze the direct and indirect effects of compensation and work discipline on employee performance, with motivation as a mediating variable. A quantitative research design using a survey method was applied, with a population of 90 civil servant employees selected through saturated sampling. Data were collected via a structured questionnaire using a five-point Likert scale and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that while compensation does not directly affect employee performance, it significantly boosts work motivation. Work discipline positively influences both motivation and performance. Additionally, work motivation plays a significant role in enhancing employee performance and mediates the relationship between compensation, work discipline, and performance. These results highlight the importance of psychological and behavioral mechanisms in shaping employee performance in public sector organizations. In conclusion, strengthening work discipline and increasing motivation are more effective strategies for improving performance than relying solely on financial compensation. This study contributes to behavioral-performance models by emphasizing the mediating role of motivation.

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Journal Info

Abbrev

ijemr

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Economics and Management Research, an electronic international journal, provides a forum for publishing the original research articles, review articles from contributors, and the novel technology news related to management, accounting and economic. This journal encompasses ...