Optimizing Performance Through Employee Motivation

Abstract

This study aims to analyze the effect of workforce formation and skills on employee performance through motivation as an intervening variable at PT PLN (Persero) UP2D North Sumatra. This research employed a quantitative approach with data collected through questionnaires distributed to 117 employees as the research sample. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that workforce formation and skills have a positive and significant effect on employee performance. In addition, workforce formation and skills also have a positive and significant effect on motivation. Motivation was found to have a positive and significant effect on employee performance. However, the indirect effect test shows that motivation does not mediate the relationship between workforce formation and skills on employee performance. Therefore, employee performance improvement is more directly influenced by workforce formation and skills. This study is expected to provide managerial implications for improving employee performance through proper workforce formation and skill development.