Understanding Employee Performance Through Compensation and Work Motivation: An Empirical Study of Technical Store Employees in Central Jakarta

Rashaky Arya Vito

doi:10.36733/emas.v7i10.15018

Authors

Rashaky Arya Vito Universitas Mercu Buana, Indonesia

DOI:

https://doi.org/10.36733/emas.v7i10.15018

Keywords:

compensation, work motivation, employee performance, store employees

Abstract

Employee performance in small technical stores is closely connected to how employees are rewarded and how strongly they are motivated to carry out their daily responsibilities. This study aims to examine the effects of compensation and work motivation on employee performance among technical store employees in Central Jakarta. A quantitative explanatory design was employed, involving 62 employees selected through purposive sampling. Data were obtained and analyzed using PLS-SEM with SmartPLS 4. The findings reveal that compensation and work motivation have a positive effect on employee performance. These findings indicate that employee performance in small technical stores is associated not only with the rewards employees receive but also with their drive, initiative, and responsibility in carrying out their work. Theoretically, this study contributes to human resource management literature by examining compensation and work motivation as determinants of employee performance in small-scale technical retail businesses. Its contextual contribution extends empirical understanding of how organizational rewards and employee motivation relate to performance in this specific operational setting. Practically, store owners can support employee performance by maintaining fair compensation, providing transparent incentives and adequate facilities, setting clear work targets, and encouraging employee initiative and responsibility.

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