The Influence of Intrinsic Motivation and Compensation on Employee Performance

Study at one of the companies operating in the Fashion sector in Bandung City

Abstract

This study was undertaken to investigate the impact of intrinsic motivation and compensation on employee performance at a fashion company in Bandung City. This research investigates the elements that exert the greatest influence on employee performance in a fashion firm in the city of Bandung. Specifically, it focuses on the relationship between intrinsic motivation and compensation. The study involves 53 employees who will be surveyed using a questionnaire.

Research utilizing route analysis indicates that the Intrinsic Motivation variable (X1) has a direct influence of 0.268 or 26.8%, an indirect influence through its link with Compensation (X2) of 0.163 or 16.3%, and a total influence of 0.431 or 43.1%. The Compensation Variable (X2) has a direct influence of 0.176 or 17.6%, an indirect influence through its relationship with Intrinsic Motivation (X1) of 0.163 or 16.3%, and a total influence of 0.339 or 33.9%. The coefficient of determination (R square) expresses the percentage that represents the magnitude of the contribution of the independent variables, Intrinsic Motivation and Compensation, which is 0.770 or 77%. The remaining 23% represents the influence of other factors on employee performance that were not studied, indicated by the value Ɛ = 0.230 or 23%. In relation to the research findings, it is recommended to focus on enhancing Employee Performance by addressing Intrinsic Motivation and Compensation.