Motivation, Work Environment, and Compensation Effects on Employee Performance at PT Beton Prima Indonesia

Purpose: This study examines the effects of work motivation, work environment, and compensation on employee performance through the mediating role of job satisfaction at PT Beton Prima Indonesia.
Research Methodology: This study employed a quantitative research approach using a causal explanatory design. Data were collected through structured questionnaires from 67 employees selected using purposive sampling. The proposed research model was analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS 3.0 to evaluate both direct and indirect relationships among the variables.
Results: Work motivation and work environment significantly improved job satisfaction, whereas compensation had no significant effect. Job satisfaction significantly enhanced employee performance and mediated the effects of work motivation and work environment on employee performance. Meanwhile, the direct effects of work motivation, work environment, and compensation on employee performance were not significant.
Conclusions: Employee performance is influenced more strongly by employees' level of job satisfaction than by direct organizational factors. Improving work motivation and creating a supportive work environment are effective strategies for enhancing employee satisfaction and, consequently, employee performance.
Limitations: This study was limited to a single manufacturing company with a relatively small sample size and a cross-sectional research design, limiting the generalizability of the findings.
Contribution: This study extends the human resource management literature by demonstrating the mediating role of job satisfaction in explaining how work motivation and work environment influence employee performance in the Indonesian manufacturing sector, while also providing practical recommendations for organizational performance improvement.