<![CDATA[ABSTRACT This study aims to analyze the effect of compensation on employee performance through work motivation as a mediating variable (intervening) in delivery man PT Sriwijaya Distribusindo Raya DC Babat Supat. The main problems in this study are triggered by fluctuations in the achievement of delivery targets, the high level of delays in distribution of goods which reaches an average of 15% every month, and complaints related to bonus schemes and overtime incentives that are not commensurate with the physical workload in the field. This quantitative study involved the entire population of delivery men, totaling 82 respondents selected using a saturated sampling technique. Data collection was carried out through the distribution of structured questionnaires with Likert scale measurements, then analyzed using the Partial Least Square Structural Equation Modeling (PLS-SEM) method based on variance through SmartPLS software. The results of the structural model test (inner model) prove that compensation has a positive and significant direct effect on employee performance and work motivation. Work motivation is also proven to have a positive and significant effect on employee performance. In addition, the indirect effect test confirms that work motivation plays a significant role as a mediating variable in the relationship between compensation and employee performance. The R-Square value shows that 60.0% of the variance in employee performance can be explained jointly by compensation and work motivation, while 37.5% of the variance in work motivation is explained by compensation. Keywords: Compensation, Work Motivation, Employee Performance, Delivery Person, PLS-SEM.]]>
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