The Effect Of Work Motivation and Compensation on Performance With Job Satisfaction as a Mediation Variables In Nadenggan 18 Autocare

Abstract

This study aims to determine the influence of work motivation and compensation on employee performance, with job satisfaction serving as a mediating variable, at Nadenggan 18 Autocare. The research process involved several stages: preparation, instrument development, data collection via questionnaires distributed to respondents, data processing and analysis, and the compilation of the final report. The sample consisted of all employees at Nadenggan 18 Autocare. Based on the research findings and discussion regarding the influence of work motivation and compensation on employee performance—mediated by job satisfaction—at Nadenggan 18 Autocare, the following conclusions can be drawn: Work motivation (X₁) has a positive and significant effect on employee job satisfaction (Z) at Nadenggan 18 Autocare; internal drives, such as the pride of working at a premium care center, foster psychological satisfaction. Compensation (X₂) has a positive and significant effect on employee job satisfaction (Z) at Nadenggan 18 Autocare; a wage and commission system perceived as fair is a key factor in ensuring employee financial satisfaction. Work motivation (X₁) has a positive and significant direct effect on employee performance (Y) at Nadenggan 18 Autocare; high morale tangibly impacts the discipline and precision of the crew when providing car care services. Compensation (X₂) does not have a significant direct effect on employee performance (Y) at Nadenggan 18 Autocare; monetary or material incentives do not automatically boost mechanic productivity unless accompanied by the management of physical fatigue and the pressures of fieldwork. Job satisfaction (Z) has a positive and significant effect on employee performance (Y) at Nadenggan 18 Autocare. Employees who feel happy and comfortable in their work environment have been shown to produce higher-quality car restoration results. Job Satisfaction (Z) was found to significantly mediate the effect of Work Motivation (X₁) on Employee Performance (Y), acting as a partial mediator. Job Satisfaction (Z) was also found to fully mediate the effect of Compensation (X₂) on Employee Performance (Y). This implies that financial budgeting policies issued by management must pass through the channel of job satisfaction to be effectively converted into tangible workplace productivity