The Role of Work Motivation in Mediating the Effect of Compensation on Employee Performance at the Medan Plantation Seed and Protection Center Plantation Crops in Medan
Keywords:
Compensation, Work Motivation, Employee PerformanceAbstract
This study aims to analyze the role of work motivation in mediating the effect of compensation on employee performance at the Medan Plantation Seed and Plant Protection Center (BBPPTP). This study uses a quantitative approach with a survey method. The study population consists of all 135 civil servant employees of BBPPTP Medan, all of whom were included as samples (population study). Data were collected through questionnaires and analyzed using Partial Least Square (PLS) with the help of SmartPLS. The results showed that compensation had a positive and significant effect on employee performance and work motivation, and work motivation had a positive and significant effect on employee performance. In addition, the results of the indirect effect test prove that work motivation acts as a mediating variable in the relationship between compensation and employee performance. The coefficient of determination value shows that compensation can explain 73.8% of the variation in work motivation, while compensation and work motivation together explain 91.7% of the variation in employee performance. The findings of this study confirm that improving employee performance is not only determined by providing fair compensation that is commensurate with the workload, but also by strengthening employee work motivation. This study is expected to serve as the basis for formulating more effective and sustainable human resource management policies at BBPPTP Medan.
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