The Effect of Financial and Non-Financial Compensation on Employee Performance at PT PLN (Persero) UP3 Bima with Work Motivation as a Moderating Variable

This study aims to examine the effect of financial and non-financial compensation on employee performance by integrating work motivation as a moderating variable within the high-pressure operational environment of PT PLN (Persero) UP3 Bima. Managing human resources effectively in the public utility sector is critical, yet the impact of structural compensation often fluctuates due to significant operational burdens and technical pressures. This study specifically investigates whether work motivation can bridge the gap between compensation and optimal performance under such conditions, providing novel empirical evidence in a sector prone to burnout. Utilizing a quantitative survey design with a saturated sampling technique (census), data were collected from all 53 employees in 2023. The structural relationships and moderating effects were analyzed using Variance-Based Structural Equation Modeling (SEM-PLS). The empirical results demonstrate that both financial and non-financial compensation do not have a significant direct effect on employee performance. Conversely, work motivation is proven to be the sole significant predictor that directly enhances performance. Furthermore, work motivation fails to moderate the relationship between either compensation type and performance. These findings suggest that structural compensation is merely perceived as a transactional obligation, emphasizing the urgent need for management to prioritize strategies that foster internal motivation and psychological resilience.