Optimizing Employee Performance: A Comprehensive Analysis of Work Motivation and Compensation in South Sumatra Organizations

Abstract

This research explores the nexus between work motivation, compensation, and employee performance in South Sumatra, emphasizing the imperative for organizations to strategically leverage human resources in a competitive landscape. The study aims to inform effective human resource management strategies by delving into financial incentives, career development, and recognition of achievements. Hypotheses posit that work motivation and compensation individually and jointly influence employee performance. Sampling in South Sumatra City from September to October 2022, the analysis, conducted using SPSS version 22, reveals a robust positive relationship between work motivation, compensation, and employee performance. Regression coefficients show low significance values, indicating a substantial impact. The linear regression model attributes approximately 33.5% of the variation in employee performance to work motivation and compensation. This research underscores the critical role of these factors in enhancing productivity, offering valuable insights for organizations to optimize performance. Recommendations include prioritizing work motivation and ensuring adequate compensation, acknowledging the study's limitations while providing guidance for comprehensive human resource management strategies.