International Journal of Business and Quality Research
Vol. 4 No. 03 (2026): July - September, International Journal of Business and Quality Research (IJBQ

The Effect Of Competence, Compensation, And Work Experience On Employee Performance Through Motivation At PT. Sentral Mandiri In Sidoarjo

Koen Irianto Uripan (STIE ABI Surabaya)
Sutoyo (STIE ABI Surabaya)



Article Info

Publish Date
22 Aug 2026

Abstract

This study aims to analyze the effect of competence, compensation, and work experience on employee performance at PT. Sentral Mandiri in Sidoarjo, both directly and through work motivation as a mediating variable. The research employs a quantitative approach using explanatory research methods to explain causal relationships among variables. The research design is causal, focusing on testing the direct and indirect effects of independent variables on employee performance. The population of this study consists of all 89 employees of PT. Sentral Mandiri in Sidoarjo, and the entire population was used as the research sample through a census method. Primary data were collected using a Likert-scale questionnaire and analyzed using Partial Least Squares (PLS) with Smart PLS 3.0 software, as the research model is causal and recursive. The results indicate that competence, compensation, and work experience have a positive direct effect on employee performance. Competence contributes to enhancing employees’ knowledge, skills, and abilities, thereby improving their performance. Fair compensation encourages employee motivation and positively affects work outcomes, while work experience increases employees’ ability to face job challenges, leading to higher performance. In addition to the direct effects, work motivation was found to mediate the relationship between competence and compensation on performance, but it did not mediate the effect of work experience. In other words, improvements in competence and compensation not only directly impact performance but also indirectly enhance it through work motivation. Conversely, work experience directly affects performance, but work motivation does not serve as a significant mediator.

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Journal Info

Abbrev

IJBQR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Business,and Quality research (IJBQR) is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality empirical and ...