This study was conducted to examine the importance of work motivation, work environment, and compensation as factors influencing employee performance in supporting the achievement of the company's targets. The objective of this study was to analyze the effect of work motivation, work environment, and compensation on the performance of production employees at PT Shou Fong Lastindo. This research employed a quantitative approach involving 138 respondents who were production employees. Data were collected through questionnaires and analyzed using validity tests, reliability tests, classical assumption tests, multiple linear regression analysis, t-tests, and the coefficient of determination (R²). The results indicate that work motivation and work environment have a positive and significant effect on employee performance, while compensation has no significant effect on employee performance. The work environment was found to be the most dominant variable affecting employee performance, as indicated by the highest regression coefficient of 0.520 and a t-value of 5.332. Furthermore, the Adjusted R Square value of 0.581 indicates that work motivation, work environment, and compensation collectively explain 58.1% of the variation in employee performance, while the remaining 41.9% is influenced by other factors outside the scope of this study. The findings also reveal that employees gave high ratings to the aspects of work motivation and work environment, reflecting strong work enthusiasm, responsibility, and a conducive working environment that supports the achievement of production targets. However, regarding the compensation variable, the allowance aspect received the lowest mean score, particularly concerning the adequacy of the benefits provided to employees. Therefore, this aspect should receive greater attention from the company to improve employee welfare and job satisfaction. Overall, the findings confirm that enhancing work motivation and creating a comfortable, safe, and conducive work environment are the key factors in improving the performance of production employees at PT Shou Fong Lastindo.
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