Published 2025-12-22
Keywords
- compensation,
- motivation
How to Cite
Abstract
To survive in the highly competitive market, every company strives to gain a competitive advantage over others. Human resources are one of the main factors for a company to achieve success. One of the main functions of human resource management and has often been the subject of research is the compensation system and its influence on employee motivation. Although companies have attempted to implement a good compensation system, it does not guarantee that employee motivation will increase. Therefore, organizations always strive to develop a better compensation system, which is more challenging to encourage increased employee motivation. Motivation is important when related to work because with high motivation, employees are expected to produce good performance, especially motivation that comes from within the employee. Although internal motivation is considered more important, employees still need external encouragement. One of the external driving factors is compensation provided by the company. This study analyzes the relationship between compensation and employee motivation at PT. Multindo Sejati, using 55 respondents who represent the total number of employees at PT. Multindo Sejati. Simple regression analysis and descriptive analysis are used in this study to test and measure potential development to maximize the ability to identify the relationship between compensation and motivation variables. The results of the study indicate that there is a significant and positive relationship between compensation and employee motivation. This reinforces the view that compensation is still a necessary external motivating factor.
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