Mengakselerasi Kinerja Pegawai: Dampak Kompetensi dan Kompensasi dengan Motivasi Kerja Sebagai Katalisator

Abstract

This study aims to analyze the effect of competence and compensation on employee performance, mediated by work motivation at the Public Works and Spatial Planning Agency (Dinas PUPR) of Palembang City. From a population of 243 employees, 71 respondents were selected using simple random sampling based on the Slovin formula. Primary questionnaire data were analyzed using an explanatory quantitative approach through the Partial Least Square-Structural Equation Modeling (SEM-PLS) method via SmartPLS. Results prove that competence and compensation have a positive and significant effect on both work motivation and employee performance. Path analysis confirms that work motivation significantly mediates the impact of competence and compensation on performance. The model demonstrates very strong predictive capability, with R-Square values of 0.936 for motivation and 0.980 for performance. Therefore, Dinas PUPR management is advised to create a supportive environment through mentoring programs to build employee optimism. Expanding employee involvement in strategic projects will foster motivation and a sense of belonging. Strengthening communication via regular team-building is also crucial. Finally, periodic evaluations of allowances and fair non-financial appreciation are vital to ensure the smooth implementation of infrastructure development programs in Palembang City.

Keywords: Competence, Compensation, Work Motivation, Employee Performance.