This study aims to analyze and explain the effects of compensation, motivation, and job satisfaction on employee work productivity at UMKM Arta Packaging and Supply Pekanbaru, with organizational culture as a mediating variable. The primary background of this research is the phenomenon of declining productivity within the production department over the last five years (2020–2024). The research design employs a quantitative approach. The population of this study consists of all 150 employees in the production department of UMKM Arta Packaging and Supply Pekanbaru. Sampling was conducted using the saturated sampling (census) technique, utilizing the entire population (150 respondents) as research samples. Data analysis was executed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The direct effect hypothesis testing results reveal that: (1) Compensation has a negative and non-significant effect on employee work productivity; (2) Motivation has a positive and significant effect on employee work productivity; (3) Job satisfaction has a positive and significant effect on employee work productivity; (4) Organizational culture has a positive but non-significant effect on employee work productivity; (5) Job satisfaction has a positive and significant effect on organizational culture; whereas compensation and motivation show no significant effects on organizational culture. Furthermore, the mediation analysis demonstrates that organizational culture is unable to significantly mediate the effect of compensation on employee work productivity. These findings indicate that driving internal motivation and fulfilling workplace expectations (satisfaction) are the most dominant factors that tangibly enhance employee work productivity within this creative UMKM sector.
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