<![CDATA[This study investigates the effect of salary and work environment on employee performance, with job motivation acting as a mediator at PT Transcoal Pacific Sangatta. The study involved 55 employees from the company as respondents. The Structural Equation Modeling (SEM) technique was used to analyze the data, supported by the SmartPLS software for multivariate hypothesis testing. The analysis followed two key stages using the Partial Least Squares (PLS) technique: evaluation of the outer model, followed by assessment of the inner model. The data indicated that salary had a favorable and considerable impact on employee performance. Similarly, the working environment has a favorable and significant impact on performance. Compensation also significantly enhances work motivation, while the work environment’s effect on motivation is positive but not significant. Furthermore, motivation has a positive and significant impact on performance. Compensation indirectly influences performance through motivation in a significant and positive manner, whereas the indirect effect of the work environment on performance through motivation is positive but not statistically significant.]]>
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