The Effect of Work Motivation and Compensation on Employee Performance at PT GPI Logistik Surabaya

Abstract

This study aims to determine the effect of work motivation and compensation on employee performance at PT GPI Logistik Surabaya. The problems discussed in this study are how work motivation affects employee performance, how compensation affects employee performance, and how work motivation and compensation simultaneously affect employee performance at PT GPI Logistik Surabaya. This study used a quantitative research method with a survey approach. Data collection techniques were carried out through questionnaires distributed to 32 respondents who were all employees of PT GPI Logistik Surabaya using saturated sampling techniques. Data analysis was conducted using SPSS version 25 through classical assumption tests, multiple linear regression analysis, t-tests, F-tests, and coefficient of determination. The results showed that work motivation had a positive and significant effect on employee performance with a significance value of 0.000 <0.05. Compensation also has a positive and significant effect on employee performance with a significant value of 0.047 < 0.05. Simultaneously, work motivation and compensation have a significant effect on employee performance with a significance value of 0.000 < 0.05. The coefficient of determination (R²) value of 0.575 indicates that work motivation and compensation are able to explain employee performance by 57.5%, while the remaining percentage is influenced by other variables outside this study.