The effect of work motivation on employee performance with compensation as an intervening variable at PT Hutama Karya (Persero) Trans Toll Road Construction Division Sumatera in Cawang, East Jakarta

Martin Hutagalung *, M. Isa Indrawan and Kiki Farida Ferine

Department of Magister Management, University of Pembangunan Panca Budi, Medan, Indonesia.
 
Research Article
World Journal of Advanced Research and Reviews, 2024, 22(01), 256–263
Article DOI: 10.30574/wjarr.2024.22.1.0988
 
Publication history: 
Received on 19 February 2024; revised on 28 March 2024; accepted on 31 March 2024
 
Abstract: 
This study aims to determine and analyze the effect of work motivation on employee performance with compensation as an intervening variable at PT Hutama Karya (Persero) Trans Sumatra Toll Road Development Division in Cawang, East Jakarta. This research method uses associative and quantitative approaches with a population of 168 people who are permanent employees. The sampling technique is purposive sampling using the slovin formula so that the number of samples is 63 respondents. Data analysis techniques use SEM (Structural Equation Modelling) based on Smart_Partial Least Square (PLS). Based on direct testing (direct effect) the results of the study show that motivation has a positive and significant effect on employee performance. Motivation has a positive and significant effect on employee compensation. Compensation has a positive and significant effect on employee performance. And based on indirect testing, motivation has a positive and significant effect on employee performance through compensation at PT Hutama Karya (Persero) Trans Sumatra Toll Road Development Division.
 
Keywords: 
Performance Motivation; Compensation; Performance; Intervening variable
 
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