November 1, 2025

The Influence of Compensation and Work Environment on Employee Performance Mediated by Employee Engagement at PT. XYZ

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Analysis reveals compensation affects employee engagement, while work environment boosts performance, indicating the importance of these factors.

Employee engagement positively influences employee performance, underscoring its significance in workplace dynamics.
Data analysis utilized SEM PLS to discern the relationships between compensation, work environment, and performance outcomes amongst respondents.
Findings highlight that while compensation can negatively impact employee performance, it is crucial to mitigate job dissatisfaction.
The work environment significantly enhances employee performance while having no effect on engagement, suggesting distinct areas for improvement.

Noviana et al. (2025) studied this question.

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Analysis reveals compensation affects employee engagement, while work environment boosts performance, indicating the importance of these factors.