Transformational Leadership, Compensation, Organizational Justice on Sustainable Employee Performance: The Mediating Role of Work Motivation

Abstract

Objectives: This study examines the effects of transformational leadership, compensation, and organizational justice on sustainable employee performance, with work motivation as a mediating mechanism among healthcare-segment supervisors at PT ISS Indonesia.

Methodology: A quantitative explanatory and cross-sectional design was employed. Data were obtained from 140 permanent supervisors selected from a population of 215 employees using random sampling. The five constructs were measured using a five-point Likert scale and analyzed with partial least squares structural equation modeling using SmartPLS 4.

Finding: Transformational leadership, compensation, organizational justice, and work motivation each had positive and significant direct effects on sustainable employee performance. The three organizational antecedents also significantly increased work motivation. Indirect effects through work motivation were significant for transformational leadership (β = 0.124), compensation (β = 0.100), and organizational justice (β = 0.115), indicating partial mediation. The model explained 63.2% of sustainable employee performance.

Conclusion: Sustainable performance is strengthened when supportive leadership, valued compensation, and fair organizational treatment are translated into higher work motivation.