The Effect of Work Environment and Compensation Differences on Sustainable Employee Performance through Motivation
DOI:
https://doi.org/10.70550/joseb.v3i3.696Keywords:
Work Environment, Compensation Differences, Motivation, Sustainable Employee Performance, SEM-PLSAbstract
Objectives: This study examines the effect of work environment and compensation differences on sustainable employee performance, both directly and indirectly through motivation as an intervening variable, among employees who prepare State-Owned Property (BMN) Supervision and Control Reports at the Supreme Court of the Republic of Indonesia in the West Java region.
Methodology: This study used a quantitative approach with a survey method involving 159 respondents selected through census (saturated) sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS software.
Finding: The results show that work environment has no significant direct effect on sustainable employee performance, whereas compensation differences, motivation, and the indirect path from work environment through motivation each have a significant positive effect. Compensation differences were found to be the most dominant factor influencing both motivation and sustainable employee performance.
Conclusion: Motivation plays a key mediating role in linking work environment and compensation differences to sustainable employee performance. Organizations, particularly the Supreme Court of the Republic of Indonesia, are recommended to strengthen employee motivation programs alongside compensation management to optimize sustainable performance outcomes.
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