<![CDATA[In an increasingly dynamic work environment, compensation fairness has become an important factor in shaping employees’ perceptions of their financial security and, ultimately, their work performance. This study examines the effect of compensation fairness on employee performance, with financial well-being serving as a mediating variable. An explanatory quantitative approach was employed using synthetic data comprising 250 observations. Each construct was measured using six reflective indicators on a 5-point Likert scale. The results indicate that compensation fairness has a positive effect on financial well-being (β = 0.455), while financial well-being positively affects employee performance (β = 0.382). Compensation fairness also retains a direct positive effect on employee performance (β = 0.299). The indirect effect is 0.174, with a 95% confidence interval ranging from 0.111 to 0.249, indicating partial mediation. These findings suggest that perceived compensation fairness has the potential to enhance employee performance not only directly but also indirectly through improved employee financial well-being.]]>
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