This study aims to analyze the effect of the work environment on employee performance with job satisfaction as an intervening variable at PT. Pembangunan Graha Indah Lestari Medan. This study employed a quantitative approach using a survey method. The population consisted of 42 employees of PT. Pembangunan Graha Indah Lestari Medan, and all members of the population were included as respondents. Data were collected through a questionnaire using a Likert scale and analyzed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach through SmartPLS 4.0. Hypothesis testing was conducted using the bootstrapping method at a 5% significance level. The results showed that the work environment had a positive and significant effect on job satisfaction, with an original sample value of 0.350, a t-statistic of 2.434, and a p-value of 0.015. The work environment also had a positive and significant effect on employee performance, with an original sample value of 0.401, a t-statistic of 2.290, and a p-value of 0.022. Meanwhile, job satisfaction did not have a significant effect on employee performance, with an original sample value of 0.108, a t-statistic of 0.704, and a p-value of 0.481. Furthermore, the indirect effect of the work environment on employee performance through job satisfaction was also not significant, with an original sample value of 0.038, a t-statistic of 0.563, and a p-value of 0.574. Therefore, job satisfaction was not proven to function as an intervening variable in the relationship between the work environment and employee performance. The findings indicate that the work environment plays a more direct role in improving employee performance.
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