International Journal of Economy, Education and Entrepreneurship (IJE3)
Vol. 6 No. 2 (2026): International Journal of Economy, Education and Entrepreneurship

AN ANALYSIS OF THE EFFECTS OF COMPENSATION AND WORK ENGAGEMENT ON EMPLOYEE PERFORMANCE IN THE PRODUCTION DEPARTMENT AT PT PANELINDO FURNITECH MULTIGUNA, SERANG REGENCY

Siti Muhaeni Indriyanti (Universitas Bina Bangsa)
Khaeruman Khaeruman (Universitas Bina Bangsa)
Aria Cendana Kusuma (Universitas Bina Bangsa)



Article Info

Publish Date
08 Aug 2026

Abstract

This study aims to examine the influence of K compensation and work engagement on employee performance, both partially and simultaneously, within the production department of PT Panelindo Furnitech Multiguna in Serang Regency, which has experienced a downward trend in production target achievement since March 2026, allegedly due to sub-optimal management of these two factors. This study employs a survey method using a quantitative approach. The study population and sample comprised all 77 employees in the production department, using a saturation sampling technique. Data were collected through observation, literature review, and a Likert-scale questionnaire, and subsequently analyzed using SPSS version 25 via classical assumption tests, multiple linear regression, the coefficient of determination test, the t-test, and the F-test. The results indicate that Compensation (X1 ) has a positive and significant effect on Employee Performance (Y) (tcalculated  8.842 > ttable 1.66543; sig. < 0.001), whilst Job Commitment (X2 ) showed a negative relationship with tcalculated  -2.531 and sig. 0.013. Taken together, Compensation and Job Commitment have a significant effect on Employee Performance (Fcalculated  40.623 > Ftable  3.120; sig. < 0.001), with a coefficient of determination (R²) of 0.523 or 52.3%. It is concluded that compensation is the most dominant factor in improving Employee Performance in this study.

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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 ...