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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