The Effect of Compensation and Work Environment on Employee Performance
DOI:
https://doi.org/10.54518/rh.6.2.2026.1092Keywords:
Compensation, Employee Performance, Human Resource Management, Work EnvironmentAbstract
Human resources constitute a strategic asset that plays a vital role in the sustainability and success of an organization, with employee performance serving as a key indicator of effective HR management. This study aims to analyze the effect of compensation and work environment on employee performance, both partially and simultaneously. A quantitative research design with an associative approach was employed, involving all 55 permanent employees as respondents using a saturated sampling technique. Data were collected through structured questionnaires and direct observation and analyzed using multiple linear regression and statistical assumption tests with SPSS. The findings reveal that both compensation and work environment, individually and simultaneously, have a significant positive effect on employee performance. Adequate and fair compensation enhances employee motivation, satisfaction, and loyalty, while a supportive, safe, and comfortable work environment improves focus, efficiency, and work engagement. The practical implication is that organizations should implement competitive and equitable compensation systems and cultivate a conducive work environment to optimize employee performance and achieve strategic organizational objectives. In conclusion, effective management of internal organizational factors is essential for maximizing employee productivity, motivation, and effectiveness.
Downloads
References
Dayanti, A., & Nurchayati, N. (2023). Exploring the influence of transformational leadership style and motivation on employee performance. Research Horizon, 3(4), 467–476.
Dessler, G., & Simamora, H. (2020). Manajemen sumber daya manusia. Jakarta: Prenhalindo.
Febryan, S., & Kamilia, N. (2025). The role of job satisfaction mediation in the work environment and employee performance. Research Horizon, 5(4), 1063–1074.
Fibriadi, H., & Yusuf, M. (2022). The effect of compensation and work environment on employee performance. Al-Amwal: Jurnal Ekonomi dan Perbankan Syari’ah, 14(2), 197–210.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program iBM SPSS 25 (Edisi 9). Semarang: Badan Penerbit Universitas Diponegoro.
Herlina. (2023). Pengaruh kompensasi dan lingkungan kerja terhadap kinerja karyawan PT. X. Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 11(3), 567–576.
Ilmi, M., & Juliana, S. (2023). The effect of motivation and compensation on employee performance in South Tangerang. Jurnal Ilmiah Manajemen Kesatuan, 11(3), 1095–1102.
Irfan, A., Aminah, A., & Armelia, C. (2023). Pengaruh motivasi kerja terhadap kinerja karyawan pada PT. Liny Jaya Informatika Makassar. Jurnal Manuhara: Pusat Penelitian Ilmu Manajemen dan Bisnis, 2(1), 107–121.
Kurniawan, P., Sunarsi, D., & Solihin, D. (2022). The effect of work motivation and work discipline on employee performance at the Health Department of Tangerang Selatan City. International Journal of Education, Information Technology, and Others, 5(2), 271–279.
Lilo, A. N. G., & Ardiansari, A. (2025). The influence of work environment and work motivation on employee performance through job satisfaction as a mediation variable. Research Horizon, 5(4), 1111–1124.
Maulidina, W., & Sularmi, L. (2024). Pengaruh kompensasi dan disiplin kerja terhadap kinerja karyawan pada PT Indah Jaya Textile Industri Kota Tangerang. Jurnal Ekonomi, Manajemen dan Bisnis, 1(1), 529–538.
Olivia, M., Rizky, M. T., & Ramadhani, D. A. (2024). Analysis of compensation and work environment in improving employee performance. Indonesian Journal of Multidisciplinary Science, 3(4), 350–354.
Puspita, R. A., & Ferils, M. (2025). Strategi manajemen operasional sdm dalam meningkatkan kinerja karyawan. Jurnal Pengabdian Masyarakat dan Riset Pendidikan, 4(1), 2898–2906.
Putri, A., & Arifin, Z. (2025). Pengaruh kompensasi dan lingkungan kerja terhadap kinerja karyawan melalui kepuasan kerja (Studi kasus pada industri kreativitas Bandung). Jurnal Riset Bisnis dan Manajemen, 12(1), 45–56.
Rachmad, Y. E., Abubakar, F., Arief, I., Hartati, S., & Kristanti, D. (2023). The influence of organizational culture, educational background and compensation on employee performance at National Sharia Bank. JEMSI (Jurnal Ekonomi, Manajemen, dan Akuntansi), 9(2), 327–332.
Riyadi, S., Hasibuan, P. W., Sudadi, S., Hanim, S. A., & Faulina, R. (2023). The role of compensation and work environment on loyalty of Islamic private school teachers. Mudir: Jurnal Manajemen Pendidikan, 5(2), 387–391.
Ronalddo, M. N., & Rizqi, M. A. (2024). Pengaruh kompensasi, lingkungan kerja, motivasi terhadap kinerja karyawan pt mitra jaya gung. Jurnal Manajemen dan Akuntansi, 19(1), 139–153.
Salsabiela, C., Soenaria, S. R., & Lastiati, A. (2025). The influence of work environment on the interaction between motivation, employee performance, compensation and employee job satisfaction (analysis on multinational and domestic companies). Eduvest: Journal of Universal Studies, 5(6), 6601–6617.
Santoso, A. B., & Oktafien, S. (2024). The impact of a conducive work environment on improving employee performance. Manajemen dan Bisnis, 23(1), 69-80.
Septianingtyas, D., Pratama, R., & Hidayat, A. (2024). Pengaruh kompensasi dan lingkungan kerja terhadap kinerja karyawan (Studi pada Hotel JS Luwansa & Convention Center). Jurnal Business Management, 10(2), 123–134.
Shammout, M. (2021). The impact of work environment on employees performance. International Research Journal of Modernization in Engineering Technology and Science, 3(11), 78-101.
Sugiyono. (2023). Metode penelitian kuantitatif, kualitatif, dan R&D. Bandung: Alfabeta.
Suparman, S., Santoso, R. A., & Desembrianita, E. (2024). Dynamics of employee performance: The influence of compensation and organizational culture through motivation as a mediator at PT Mana Jaya Makmur Mojokerto. Manazhim, 6(1), 344–366.
Tholib, S. Z. A.-Z., Maulina, S. B., Azizah, F. N., & Wahyu, S. (2024). Peran strategis manajemen sumber daya manusia dalam meningkatkan kinerja organisasi. Jurnal Ekonomi, Manajemen dan Akuntansi, 2(5), 206–212.
Tuffaha, M. (2020). The determinants of employee’s performance: A literature review. Journal of Economics and Management Sciences, 3(3), 14-24.
Warongan, B. U., Dotulong, L. O., & Lumintang, G. G. (2022). Pengaruh lingkungan kerja dan stres kerja terhadap kinerja karyawan pada PT Jordan Bakery Tomohon. Jurnal EMBA, 10(1), 963–972.
Waruwu, D. P. J., Prayoga, B. I., & Rambe, S. (2025). The effect of compensation and work environment on employee performance through job satisfaction at UD. Efiyanto, Medan City. Jurnal Dialektika: Jurnal Ilmu Sosial, 23(3), 1030–1046.
Widiaastuti, R. (2018). Analisis lingkungan kerja dan pengaruhnya terhadap produktivitas karyawan. Jurnal Manajemen dan Bisnis, 5(2), 45–56.
Yusuf, A., & Elsandra, Y. (2023). Pengaruh lingkungan kerja dan etos kerja terhadap kinerja guru dimediasi oleh motivasi kerja di SMP Negeri 1 Rao. Ensiklopedia of Journal Ekonomi, 6(1), 137–147.
Zaeni, N., Arfah, A., & Semmaila, B. (2022). The effect of compensation and work environment on employee performance. Point of View Research Management, 3(2), 161–173.
Zulher, Z., Norawati, S., Basem, Z., & Azmi, U. (2022). The impact of compensation and work environment on employee performance through job satisfaction. ECo-Buss, 5(2), 722–731.
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2026 Atarnis Cahaya Lombu, Yunita Fitri Wahyuningtyas
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
