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This study investigates the impact of employee competence and the work environment on performance at PT. Karya Mitra Teknik Forklift Sidoarjo. Through observations, interviews, and surveys with 30 employees over six months, the study applies Partial Least Squares Structural Equation Modeling (PLS-SEM) and Importance Performance Analysis (IPA). Results show that both competence and the work environment significantly influence performance, with timely task completion and a supportive work environment identified as key areas for improvement. Enhancing employee discipline and optimizing workplace conditions are recommended to boost productivity and employee satisfaction in heavy equipment service companies. Further research could explore additional factors like compensation to further enhance organizational outcomes. Highlight: Investigate competence and environment effect on employee performance. Timely task completion and supportive work environment enhance performance. Improve employee discipline and optimize workplace conditions for effectiveness. Keywoard: Competence, Work Environment, Performance, Heavy Equipment Services, Employee Satisfaction
Yoshanda et al. (Wed,) studied this question.