The Effect of Compensation on Employee Performance Through  Work Motivation and Job Satisfaction at Palm Oil Mill, Sei  Baruhur

Dimas Aji Riendra; Sofiyan; Salman Faris; Rosita

Published May 12, 2026

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Vol. 3 No. 1 (2026): Proceeding International Conference on Economic, Business, Management and Accounting

Dimas Aji Riendra

Universitas Prima Indonesia

Sofiyan

Universitas Prima Indonesia

Salman Faris

Universitas Prima Indonesia

Rosita

Universitas Prima Indonesia

Abstract

This study aims to examine how compensation influences employee performance, both directly
and indirectly, through work motivation and job satisfaction. Using a quantitative method and
path analysis, data were gathered from 90 employees at Palm Oil Mill, Sei Baruhur through
structured questionnaires. The findings show that compensation has a direct and significant
effect on both job satisfaction and employee performance. However, compensation does not
significantly affect work motivation, and work motivation itself does not significantly influence
performance. In contrast, job satisfaction plays a key role in improving employee performance.
The mediation analysis indicates that compensation indirectly impacts performance through job
satisfaction, but not through work motivation. These results emphasize the importance of job
satisfaction as a mediator in the compensation performance relation. It is recommended
compensation practices and built a supportive work environment that enchances employee
satisfaction to achieve better performance outcomes.
Keywords: Compensation, Work Motivation, Job Satisfaction, Employee Performance.

How to Cite

Dimas Aji Riendra, Sofiyan, Salman Faris, & Rosita. (2026). The Effect of Compensation on Employee Performance Through Work Motivation and Job Satisfaction at Palm Oil Mill, Sei Baruhur . Proceeding International Conference on Economic, Business, Management and Accounting, 3(1). Retrieved from https://jurnal.unprimdn.ac.id/index.php/icebesma/article/view/8390

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