THE EFFECT OF WORK MOTIVATION AND COMPENSATION ON EMPLOYEE PERFORMANCE (A STUDY ON EMPLOYEES OF PT TEGUHSINDO LESTARITAMA PONOROGO)
Abstract
Employee performance is a key factor in achieving organizational goals. At PT Teguhsindo Lestaritama Ponorogo, performance has not been optimal, as reflected by a 91.34% work target achievement rate, a 3.81% product defect rate, a 4.8% absenteeism rate, and 19.08% of employees not receiving monthly incentives. This study aimed to examine the effect of work motivation and compensation on employee performance. A quantitative approach with saturated sampling was applied to all 65 employees. Data were collected through a questionnaire and analyzed using multiple linear regression with SPSS 25. The results indicate that work motivation and compensation have a positive and significant effect on employee performance, with a coefficient of determination of 63.6%. Work motivation was identified as the most dominant factor.
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