This study aims to determine the effect of work motivation and employee engagement on employee performance among employees at a souvenir retail store in Garut. The study was motivated by suboptimal employee performance, as reflected in high turnover and a decline in sales targets for the July–November 2025 period, as well as low work motivation and employee engagement based on the results of a preliminary survey. This study employed a quantitative method with an associative approach, involving a population of 52 employees and using a saturation sampling technique. Data were collected through the distribution of questionnaires using a Likert scale to measure respondents’ answers. Data analysis was conducted using the PLS-SEM method with the assistance of SmartPLS 3.0 software. The results indicate that work motivation and employee engagement have a positive and significant effect on employee performance at a Garut souvenir shop. This suggests that enhancing work motivation and employee engagement is a key strategy for addressing declining performance in local retail companies.
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