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<article xmlns:xlink="http://www.w3.org/1999/xlink" dtd-version="1.3" article-type="research-article"><front><journal-meta><journal-id journal-id-type="issn">2808-0718</journal-id><journal-title-group><journal-title>Indonesian Journal of Business Analytics (IJBA)</journal-title><abbrev-journal-title>Indonesian Journal of Business Analytics (IJBA)</abbrev-journal-title></journal-title-group><issn pub-type="epub">2808-0718</issn><issn pub-type="ppub">2808-0718</issn><publisher><publisher-name>Formosa Publisher</publisher-name><publisher-loc>Jl. Sutomo Ujung No.28 D, Durian, Kecamatan Medan Timur, Kota Medan, Sumatera Utara 20235, Indonesia.</publisher-loc></publisher></journal-meta><article-meta><article-categories><subj-group><subject>10.55927/ijba.v5i3.14509</subject></subj-group></article-categories><title-group><article-title>The Effectiveness of Compensation in Improving Employee Motivation, 
 Discipline, and Performance</article-title></title-group><contrib-group><contrib contrib-type="author"><name><surname>Rochman</surname><given-names>Abdul</given-names></name></contrib><contrib contrib-type="author"><name><surname>Sutianingsih</surname></name></contrib></contrib-group><pub-date date-type="collection" iso-8601-date="2025-6-12"><day>12</day><month>6</month><year>2025</year></pub-date><volume>5</volume><issue>3</issue><issue-title>The Effectiveness of Compensation in Improving Employee Motivation,  Discipline, and Performance</issue-title><fpage>2259</fpage><lpage>2272</lpage><history><date date-type="received" iso-8601-date="2025-4-21"><day>21</day><month>4</month><year>2025</year></date><date date-type="rev-recd" iso-8601-date="2025-5-16"><day>16</day><month>5</month><year>2025</year></date><date date-type="accepted" iso-8601-date="2025-6-10"><day>10</day><month>6</month><year>2025</year></date></history><permissions><copyright-holder>Formosa Publisher</copyright-holder><license><ali:license_ref xmlns:ali="http://www.niso.org/schemas/ali/1.0/">https://journal.formosapublisher.org/licenses/by/4.0/</ali:license_ref><license-p>This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.</license-p></license></permissions><self-uri xlink:href="https://journal.formosapublisher.org/index.php/ijba" xlink:title="The Effectiveness of Compensation in Improving Employee Motivation,   Discipline, and Performance">The Effectiveness of Compensation in Improving Employee Motivation, 
 Discipline, and Performance</self-uri><abstract><p>The  purpose  of  this  study  is  to  find  out  how compensation for work motivation, work discipline and employee performance. Specifically,  this  study  investigated  the  extent  to which compensation affects employee work motivation, work discipline and performance. The type  of  data  used  is  quantitative  data,  while  the source  of  research  data  is  primary  data,  namely data  collected  directly  by  the  researcher  through the provision of questionnaires. The analysis method  in  this  study  uses  path  analysis.  Data processing  using  SmartPLS.  The  study's  findings demonstrate  that  pay  rates  significantly  impact workers' levels of motivation, discipline, and output.  Employee performance is positively and significantly  impacted  by  work  motivation  and discipline.    The  compensation  route  test  shows that it indirectly affects performance in a favorable and  statistically  significant  way  via  encouraging and enforcing discipline in the workplace.</p></abstract><kwd-group><kwd>Effectiveness</kwd><kwd>Compensation</kwd><kwd>Motivation</kwd><kwd>Discipline</kwd></kwd-group><custom-meta-group><custom-meta><meta-name>File created by JATS Editor</meta-name><meta-value><ext-link ext-link-type="uri" xlink:href="https://jatseditor.com" xlink:title="JATS Editor">JATS Editor</ext-link></meta-value></custom-meta><custom-meta><meta-name>issue-created-year</meta-name><meta-value>2025</meta-value></custom-meta></custom-meta-group></article-meta></front><body><sec><title>INTRODUCTION</title><p>Bureaucratic reform in Indonesia continues to roll, one of which is through the implementation of the compensation system. This policy is expected to be able to encourage an increase in the motivation and work discipline of State Civil Apparatus (ASN) and Non-ASN, which ultimately leads to an improvement in overall organizational performance. The Grobogan Regency Regional Government, especially the Grobogan Regency Regional Secretariat as the front line of government administration, has also adopted the compensation system as an instrument of human resource management. However, the effectiveness of compensation in realizing these goals needs to be evaluated empirically <xref ref-type="bibr" rid="">(Lathifah, 2013)</xref></p><p>Gaining a positive return on investment from one's efforts is an important consideration when putting plans into action. A number of elements, including as pay, incentives, work discipline, and so on, impact how good an employee is at their job, so getting them to work together effectively is no picnic. Work effectiveness is the overall implementation of physical activities that are carried out to achieve certain goals <xref ref-type="bibr" rid="">(Asnar, 2013)</xref> This compensation will be used by the employee to meet his or her living needs.</p><p>According to Mubaroq and Zulkarnaen (2017), workers' position, recognition, and the extent to which their demands are met are all reflected in the amount of compensation they get. A higher salary indicates that workers are in better positions, have more prestige, and are able to meet more of their demands. He is becoming more satisfied with his job as a result. This is where the importance of compensation for employees as a seller of energy (physical and mental) lies Compensation or reward programs generally aim for the benefit of the company, employees, and the government, or society <xref ref-type="bibr" rid="">(Bahrenita, 2021)</xref> In order to achieve this goal and provide satisfaction for all parties, the compensation program should be established based on the principles of fair and reasonableness, labor laws and attention to internal and external consistency.</p><p>Romadhoni et al. (2019) states that there are two types of factors—external and internal—that affect motivation. Employees' pay, the quality of their work environment, the demands of their organization or tasks, the support and advice they receive from their superiors, and other external variables all have a role. Individual variables include things like behavior, degree of education, prior experience, and future aspirations or hopes <xref ref-type="bibr" rid="">(Wicaksono &amp;</xref> <xref ref-type="bibr" rid="">Hermani, 2017)</xref>. It is necessary to provide employees with effective motivation. In order to prevent employees from constantly griping about insignificant matters, failing to adhere to all business regulations, and laying responsibility at the feet of their coworkers. Consequently, in order to accomplish the objectives of the organization, it is critical to inspire employees to work harder and boost their morale.</p><p>Discipline is a necessary factor as a deterrent for employees who refuse to change their attitudes and behaviors <xref ref-type="bibr" rid="">(Sudaryono &amp;</xref> <xref ref-type="bibr" rid="">Sutianingsih, 2023)</xref> Discipline in an institution is an obligation so that in the future the institution will have competitiveness in the future.</p><p>Discipline can certainly be reflected in how much employee attendance at work and how much daily work is completed <xref ref-type="bibr" rid="">(Nugroho &amp;</xref> <xref ref-type="bibr" rid="">Sutianingsih, 2024)</xref> An employee is lazy in the automatic attendance of the work that is the responsibility will be abandoned or piled up so that it can interfere or hinder the performance of an institution.</p></sec><sec><title>LITERATURE REVIEW</title><p>Compensation</p><p>Setiawan &amp; Dewi (2014) compensation is something that employees receive for the services they contribute to their work. Meanwhile, Sutrisno (2013) compensation is everything that employees receive in return for their work activities. The view of Astuti and Sari (2018) differs, arguing that workers' pay should be broadly defined to include any and all forms of direct or indirect products and services obtained by workers from their employers. According to Kasmir (2016), workers receive monetary and non-monetary remuneration from their employers in exchange for the services they do. Meanwhile, according to Ramadhani &amp; Lestariningsih (2020) and Sutianingsih &amp; Yuliyana <xref ref-type="bibr" rid="">(Sutianingsih &amp;</xref> <xref ref-type="bibr" rid="">Yuliyana, 2023)</xref> compensation is something that employees receive in lieu of their service contributions to the company.</p><p>According to Mangkunegara &amp; Prabu (2017) a process of salary or wage administration or can be called compensation requires consideration or balance in a calculation. In this case, compensation is something that needs to be considered before being given to employees in the form of salaries or wages. These considerations can be in the form of the results of the employee's performance that are optimal and in accordance with what the boss expects or not. If it is maximized and in accordance with what the superiors expect, the compensation that will be given will be large. Workers are more invested in their jobs when they get higher pay, while employees are less invested when they get lower pay. Prior studies by Handoko et al. (2021) and Lestari &amp; Febrian (2024) corroborate this idea, finding that pay rates significantly impact productivity in the workplace.</p><sec><title>H1 : Compensation has a positive effect on employee performance</title><p>Compensation has a relationship with work motivation. In the context of work, a person will be compensated if he or she has performed his duties and responsibilities. Rewarding employees monetarily might inspire them to work harder. Workers will be more motivated to accomplish a good job if they are well compensated for their efforts. People will work harder and more efficiently if their pay is commensurate with their expectations. Prior studies by Sholeh et al. (2024) and Nugraha (2023) corroborate this idea, showing that pay boosts motivation in the workplace.</p></sec><sec><title>H2 : Compensation has a positive effect on work motivation</title><p>Workers' pay is the money they get from their employer in exchange for the work they do. Workplace discipline, on the other hand, is the mentality of a person who is eager to follow the rules and regulations that are in place. Employees' actions in performing their jobs can be influenced by the amount of money they get. Workers will be more likely to follow corporate policy and</p><p>discipline themselves if their pay is commensurate with the work they put in. By providing appropriate compensation, of course, it will increase the work discipline of employees. This is supported by previous research conducted by Aryani et al. (2021) results that compensation has a positive and significant influence on work discipline.</p></sec><sec><title>H3 : Compensation has a positive effect on work discipline</title><p>A salary or wage administration process or it can be called compensation requires consideration or balance in a calculation. In this case, compensation is something that needs to be considered before being given to employees in the form of salaries or wages. These considerations can be in the form of the results of the employee's performance that are optimal and in accordance with what the boss expects or not. If employees get compensation in accordance with their expectations, then compensation can arouse employee motivation, this will certainly make employees better. Several studies have shown that compensation can motivate employees to perform better on the job. For example, Handoko et al. (2021), Lestari &amp; Febrian (2024), Sholeh et al. (2024), Nugraha (2023), and Sudaryono &amp; Sutianingsi (2023) all hit this mark.</p></sec><sec><title>H6 : Compensation has a positive effect on employee performance through work motivation</title><p>Workers' pay is the money they get from their employer in exchange for the work they do. Workplace discipline, on the other hand, is the mentality of a person who is eager to follow the rules and regulations that are in place. Employees' actions in performing their jobs can be influenced by the amount of money they get. Workers will be more likely to follow corporate policy and discipline themselves if their pay is commensurate with the work they put in. Naturally, it will promote work discipline by paying people appropriately. The findings of prior studies by Handoko et al. (2021), Lestari &amp; Febrian (2024), Aryani et al. (2021), Sutianingsih (2023), Nurhalizah &amp; Oktiani (2024) corroborate this idea, demonstrating that remuneration significantly and positively affects employee performance via work discipline.</p></sec><sec><title>H7 : Compensation has a positive effect on employee performance through work discipline</title><p>Work Motivation</p><p>Motivation is a process that explains an individual's intensity, direction and perseverance to achieve his or her goals (Pratikno; &amp; Sutianingsih, 2023) Work motivation includes efforts, organizational goals, and needs. The elements of effort are a measure of intensity. The directed efforts must be consistent with the organization's goals, while the need is an internal situation that causes certain results to appear attractive <xref ref-type="bibr" rid="">(Busro, 2018)</xref> Fitria &amp; Sunuharyo (2017)), stated that motivation is a process that is carried out to motivate people so that their behavior can be directed to real efforts to achieve the goals that have been set. Motivation is a reaction that arises from within a person because of external stimuli that affect him <xref ref-type="bibr" rid="">(Manizar, 2015)</xref> Motivation can be interpreted as a group</p><p>of factors that cause individuals to behave in certain ways. Motivation is an important consideration for leaders because motivation together with the ability of environmental factors greatly affects individual performance <xref ref-type="bibr" rid="">(Rachmawati, 2009)</xref></p><p>According to Rumondor (2013) motivation is an encouragement in directing the power and potential of subordinates or employees, so that they can work together productively and successfully achieve goals. So, it can be said that motivation is an effort that generates enthusiasm or encouragement at work. With motivation in subordinates or employees, it will cause high enthusiasm for work, which will affect employee performance so that employees can be more productive and can achieve their goals. This is supported by previous research conducted by Sudaryono &amp; Sutianingsi (2023) showing that work motivation has a positive and significant influence on employee performance.</p></sec><sec><title>H4 : Work motivation has a positive effect on employee performance</title><p>Work Discipline</p><p>Discipline in the workplace is a technique or way that an organization does to survive. Highly disciplined employees will follow all the rules to get the job done on time <xref ref-type="bibr" rid="">(Sutianingsih, 2023)</xref> Managers can use work discipline as a communication technique to make their staff members improve their behavior and become more aware and eager to follow relevant company policies and social standards <xref ref-type="bibr" rid="">(Sutrisno, 2019)</xref> Work discipline is defined by Muna and Isnowati (2022) as "the disposition of respect, appreciation, obedience, and compliance with all relevant regulations, whether written or unwritten," and the ability to carry out one's responsibilities and authority without fear of repercussions.</p><p>According to Sutrisno (2019) work discipline is one of the aspects of the work system that must be considered by every organization or company in order to improve the performance or productivity of an organization. So, in this case, work discipline is an important thing in an organization or company so it needs to be considered, because an organization or company that has employees with a high spirit of work discipline can help productivity so that the work can be completed on time. When employees are deeply committed to their profession and have a strong feeling of personal responsibility, the level of discipline in the workplace improves. Work discipline has a favorable and substantial impact, as shown by prior study by Sutianingsih (2023) and Nurhalizah &amp; Oktiani (2024). </p><sec><title>H5 : Work discipline has a positive effect on employee performance</title><p>Picture 1. Conceptual Framework</p><fig id="figure-1"><label>Picture 1. Conceptual Framework</label><graphic xlink:href="Indonesian_Journal_of_Business_Analytics_IJBA-5-3-2259-g1.tif" mimetype="image" mime-subtype="tif"><alt-text>Image</alt-text></graphic></fig></sec></sec></sec><sec><title>METHODOLOGY</title><p>The research methodology used in this study is quantitative. The study kind is explanatory, and its purposes include problem formulation, action choice determination, hypothesis development, variable recognition, issue clarity, and research priority setting. In this study, the path analysis method is used because there are mediating/intervening variables between dependent and independent variables. In this study, there are four variables, namely, the compensation variable as an independent variable (X), the employee performance variable as a dependent variable (Y), and the work motivation and work discipline variables as mediation/intervening variables (Z). This research was conducted at the Grobogan Regency Regional Secretariat. The population used in this study is employees at the Grobogan Regency Regional Secretariat. While the sample is called part of the population. The sample in this study is employees at the Grobogan Regency Regional Secretariat which totals 201 employees.</p><p>The sampling technique in this study uses the Probability Sampling technique, which is that each member of the population has the same opportunity or opportunity to be selected as a sample. The type of Probability Sampling used is saturated sampling which means that all members of the population are sampled in the study. In this study, the population is 47 people, so the researcher took the entire population of 201 people as a sample for this study.</p><p>There were four variables in this study, making Structural Equation Modelling (SEM) based on Partial Least Square (PLS) an appropriate approach for analysis. Also, it's highly practical, which means it's simpler for researchers to test their theories. A piece of hardware similar to a computer—specifically, SmartPLS version 3.0—is utilized in this approach.</p></sec><sec><title>RESULT</title><sec><title>ConvergentValidity</title><p>Convergent validity measures the consistency between variable measurement indicators and the theoretical notion that underlies their existence. The concept of convergent validity requires highly linked construct indicators. The convergent validity test may be assessed using outer loadings and average variance retrieved. Tables with outer loadings indicate the large association between an indicator and a latent variable. The loading factor must exceed 0.6 to be valid. PLS Algorithm Report SmartPLS provides output outer loadings. The table and route graphic below show construct indicators:</p></sec><sec><title>Table 1. Convergent Validity</title><table-wrap id="table-ohferr"><label>Table 1. Convergent Validity</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Discipline</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee Performance</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Motivation</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.KS1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.760</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.KS2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.806</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.KS3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.850</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.KS4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.799</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.KS5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.851</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.831</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.838</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.843</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.706</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.840</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.789</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.857</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.840</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.867</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1MK5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.628</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.809</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.843</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.849</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.857</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.639</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"/></tr></tbody></table></table-wrap><p>Within the criteria-satisfying measurement model. We may conclude that all question items for each variable utilized in this study are legitimate and can be used for the next step of analysis since, as indicated in Table 1 and <xref ref-type="fig" rid="figure-1">Picture 1. Conceptual Framework</xref>, all items have a loading value larger than 0.60. It is claimed that each of these indicators may accurately assess latent variables, and these data prove it. Reliability will be considered after convergent validity. One definition of reliability is an indicator's capacity to consistently and frequently provide deep values across all research activities. When evaluating dependability, AVE is the metric employed. By taking the error rate into account, the AVE value attempts to quantify the extent to which a build component's indications vary. It is more important to test using AVE values than with composite reliability. An AVE rating of 0.50 is considered minimally acceptable. The following table displays the AVE results generated from the SmartPLS 3.0 PLS Algorithm Report.</p></sec><sec><title>Table 2. AVE Value</title><table-wrap id="table-7bd5t4"><label>Table 2. AVE Value</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Average Variance Extracted</p><p>(AVE)</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work</p><p>Discipline</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.646</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee</p><p>Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.661</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work</p><p>Motivation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.642</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.663</p></td></tr></tbody></table></table-wrap><p>From table 2 above, it can be seen that the AVE output obtained by each latent variable is greater than 0.5, which shows that each latent variable is said to be valid.</p></sec><sec><title>Diskriminant Validity</title><p>Discriminant validity measures an indicator's distinction in assessing instrument constructs. Cross loading, the correlation coefficient of the indicator to its association (loading) compared to the counter construct, may be used to verify discriminant validity. The variable indicator's cross loading value must be</p><p>&gt; 0.70 and greater than other variable indicators' in reflecting a construct.</p></sec><sec><title>Table 3. Cross Loading Value</title><table-wrap id="table-6i3104"><label>Table 3. Cross Loading Value</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work</p><p>Discipline</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee</p><p>Performance</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work</p><p>Motivation</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.TK1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.378</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.449</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.365</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.760</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.TK2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.288</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.494</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.495</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.806</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.TK3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.416</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.460</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.606</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.850</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.TK4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.371</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.498</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.496</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.799</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>X1.TK5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.317</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.522</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.543</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.851</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.026</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.831</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.383</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.293</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>-0.007</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.838</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.402</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.456</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.153</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.843</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.564</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.676</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.116</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.706</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.423</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.515</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Y.KP5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.021</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.840</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.397</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.306</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.240</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.384</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.789</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.420</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.178</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.515</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.857</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.561</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.159</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.471</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.840</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.490</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1.MK4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.167</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.509</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.867</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.614</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z1MK5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.107</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.279</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.628</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.349</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK1</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.809</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.083</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.080</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.335</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK2</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.843</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.047</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.253</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.384</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK3</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.849</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.039</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.196</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.367</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK4</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.857</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.131</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.207</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.417</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Z2.DK5</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.639</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.048</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.058</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.170</p></td></tr></tbody></table></table-wrap><p>From the table above, it can be seen that the cross loading value of the indicator on the variable (printed in bold) is the largest value compared to the cross loading of the indicator on other variables. From this evaluation, it can be said that the indicators of all research variables for variable indicators that are reflective are valid to reflect the variables they measure.</p></sec><sec><title>Reliability Test</title><p>Composite reliability requirements of the indicator block assess build dependability. The build is trustworthy if its composite reliability is over 0.70. Cronbach's Alpha SmartPLS 3.0. The following table shows composite reliability values.</p></sec><sec><title>Table 4. Composite Reliability</title><table-wrap id="table-l07ydj"><label>Table 4. Composite Reliability</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Cronbach's</p><p>Alpha</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Composite</p><p>Reliability</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Discipline</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.863</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.900</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee</p><p>Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.875</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.907</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Motivation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.858</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.899</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.872</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.907</p></td></tr></tbody></table></table-wrap><p>From the table above, it can be seen that the output composite reability obtained by each latent variable is greater than 0.70. With the resulting value, all constructs have good reliability according to the minimum value limit that has been required.</p></sec><sec><title>Determination Testing</title><table-wrap id="table-5"><label>Table 5. Coefficient of determination (R2)</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>R</p><p>Square</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>R Square</p><p>Adjusted</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Discipline</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.189</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.185</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee</p><p>Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.437</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.428</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Motivation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.386</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.383</p></td></tr></tbody></table></table-wrap><p>According to the three determination coefficient analysis results in the table above, the employee performance variable's R2 value is 0.437. This suggests that remuneration, work incentive, and work discipline explain 43.7% of employee performance characteristics, whereas other variables not included in this study explain the remainder. Additionally, the determination coefficient (R2) for the work motivation variable is 0.386, meaning that 38.6% of its variance can be explained by the compensation variable and the rest by other variables not included in this study. In addition, the determination coefficient (R2) for the work discipline variable is 0.189, meaning that 18.9% of its variance can be explained by the compensation variable and the rest by other variables not included in this study.</p><sec><title>Hypothesis Testing</title><table-wrap id="table-6"><label>Table 6. Direct and Indirect Effects</label><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"/><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Original Sample</p><p>(O)</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Sample Mean</p><p>(M)</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>Standard Deviation</p><p>(STDEV)</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>T Statistics (|O/STDEV|)</p></th><th colspan="1" rowspan="1" style="" align="left" valign="top"><p>P</p><p>Values</p></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Discipline - &gt;</p><p>Employee Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>-0.188</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>-0.187</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.056</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>3.346</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.001</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Work Motivation - &gt;</p><p>Employee Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.280</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.283</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.085</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>3.289</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.001</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation - &gt; Work</p><p>Discipline</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.435</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.438</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.078</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>5.550</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.000</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Employee Performance</p><p>Compensation &gt;</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.595</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.596</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.063</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>9.472</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.000</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation -&gt; Work</p><p>Motivation</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.622</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.626</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.069</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>8.979</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>0.000</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation -&gt; Work</p><p>Discipline -&gt; Employee Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>-0.082</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>-0.082</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.029</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>2.861</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.004</p></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><p>Compensation -&gt; Work Motivation -&gt; Employee</p><p>Performance</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.174</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.179</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.062</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>2.800</p></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><break/><p>0.005</p></td></tr></tbody></table></table-wrap><p>Information</p><p>The first hypothesis is accepted at a compensation of (9.472) &gt; t table (1.652), with a P value of (0.000) &lt; 0.05. It's clear that remuneration boosts employee performance. Accepting the second hypothesis, the estimated t value (8.979) exceeds the table (1.652) and the P value at the compensation is 0.000 &lt;</p><p>0.05. It's clear that remuneration boosts labor motivation. We accept the third hypothesis, with a computed t value of 5.550 &gt; t table (1.652) and a P value of</p><p>0.000 &lt; 0.05. It's clear that remuneration improves work discipline.</p><p>The fourth hypothesis is accepted, with work motivation having a t value of (3.289) &gt; t table (1.652) and a P value of 0.001 &lt; 0.05. It's clear that job motivation boosts employee performance. The work discipline with a computed t value of (3.346) &gt; t table (1.652) and a P value of 0.001 &lt; 0.05 supports the fifth hypothesis. It's clear that work discipline boosts employee performance.</p><p>The sixth hypothesis is accepted, with a computed t value of 2.800 &gt; t table (1.652) and a P value of 0.005 &lt; 0.05 associated with the compensation. Work motivation from remuneration has a good and considerable indirect effect on employee performance. The seventh hypothesis is accepted, with a t value of (2.861) &gt; t table (1.652) and a P value of 0.004 &lt; 0.05. Compensation has a favorable and large indirect effect on employee performance through work discipline.</p></sec></sec></sec><sec><title>DISCUSSION</title><sec><title>Compensation has a positive effect on employee performance</title><p>Employee performance is significantly impacted by the salary component, according to the study's conclusions. Given that the computed t-value (9.472) &gt; t table (1.652) and the P value at the compensation level of (0.000) &lt; (0.05), it is clear that this is the case. Thus, it is clear that pay rates significantly impact productivity in the workplace. Handoko et al. (2021) and Lestari &amp; Febrian (2024) found that pay had a favorable and substantial effect on workers' productivity, lending credence to these findings.</p></sec><sec><title>Compensation has a positive effect on work motivation</title><p>The study found that pay is a key determinant of intrinsic motivation. That is evident from the estimated t-value of 8.979, which is more than the t-table value of 1.652, and the P-value at the compensation level of 0.000, which is less than 0.05. This proves that monetary reward significantly and positively affects the desire to labor. The findings are corroborated by studies that show that remuneration significantly and positively affects motivation to work Sholeh et al. (2024) and Nugraha (2023).</p></sec><sec><title>Compensation has a positive effect on work discipline</title><p>The study found that pay rate is a key determinant of workplace discipline. This is evident from the t-value value (5.550) being more than the t table value (1.652) and the P value at the compensation level of 0.000 being less than 0.05. Thus, it is clear that pay has a substantial and favorable effect on discipline in the workplace. Aryani et al. (2021) found that pay had a positive and statistically significant effect on workplace discipline, lending credence to these findings.</p></sec><sec><title>Work motivation has a positive effect on employee performance</title><p>The study found that pay rate is a key determinant of workplace discipline. The results may be observed from the t-value calculation, which is more than the t-table value (3.289) and the P value on work incentive, which is less than 0.05 (0.001). Employee performance is positively and significantly affected by job motivation. Work motivation significantly and positively affects employee performance, according to study by Sudaryono and Sutianingsi.</p></sec><sec><title>Work discipline has a positive effect on employee performance</title><p>The study found that pay rate is a key determinant of workplace discipline. Based on the t-value calculated (3.346) &gt; t table (1.652) and the P value in the work discipline (0.001 &lt; 0.05), it is evident that this is the case. Employee performance is positively and significantly impacted by work discipline. Sutianingsih (2023) and Nurhalizah and Oktiani (2024) found that work discipline significantly and positively affects employee performance, lending credence to these findings.</p></sec><sec><title>Compensation has a positive effect on employee performance through work motivation</title><p>According to the study's findings, the remuneration component motivates employees and hence affects their performance. This is evident from the t-value, which is more than the t table value (1.652) and the P value at compensation, which is less than 0.05 (0.005). Paying employees a fair wage motivates them to do a good job, which in turn boosts their performance. Past studies by Handoko et al. (2021), Lestari &amp; Febrian (2024), Sholeh et al. (2024), Nugraha (2023), and Sudaryono &amp; Sutianingsi (2023) have all reached the same conclusion: that pay motivates workers to do a good job.</p></sec><sec><title>Compensation has a positive effect on employee performance through work discipline</title><p>The study found no statistically significant relationship between the salary variable and employee performance as measured by intrinsic motivation. This is evident from the t-value, which is more than the t table value (1.652) and the P value at compensation, which is less than 0.05 (0.005). These findings demonstrate that remuneration significantly and positively influences employee performance through disciplinary measures at work. Prior studies by Handoko et al. (2021), Lestari &amp; Febrian (2024), Aryani et al. (2021), Sutianingsih (2023), and Nurhalizah &amp; Oktiani (2024) substantiate the idea that pay has a positive and substantial impact on performance in the workplace via enforcing discipline.</p></sec></sec><sec><title>CONCLUSION</title><p>There are a total of seven hypotheses in this study, with one to three pertaining to performance-based remuneration, employee motivation, and workplace discipline. The next set of assumptions concerns the effects of four or five types of workplace incentive and discipline on productivity. Sixth and seventh hypotheses are testing of pathways, namely, the influence of pay on performance as measured by intrinsic motivation and observance of work rules. Workers' motivation, discipline, and output are all positively impacted by pay, according to the research. Employee performance is positively and significantly impacted by work motivation and discipline. 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