The Effects of Compensation, Work Motivation, and Employee Competence on Employee Performance (A Study of Millennial and Generation Z Employees at PT Jasa Tirta Energi)

Abstract

Millennials and Generation Z now constitute the majority of Indonesia's workforce. However, both generations face various challenges that may affect their performance, making it important to identify the factors that drive employee performance. This quantitative study aims to analyze the effect of compensation, work motivation, and employee competence on the performance of Millennial and Generation Z employees at PT Jasa Tirta Energi. The sample consisted of 35 respondents selected using a total sampling technique. Data were collected through a questionnaire that had passed validity and reliability testing and were analyzed using multiple linear regression with the assistance of IBM SPSS Statistics version 26. The findings show that compensation has a positive and significant effect on employee performance, indicating that a fair and transparent compensation system serves as a strategic instrument for enhancing employee performance. Work motivation does not have a significant effect on employee performance, indicating that work motivation is perceived as a basic standard in the workplace and, therefore, does not directly influence employee performance. Employee competence has a positive and significant effect on employee performance, indicating that competence is a fundamental factor in determining the quality of employee performance. Based on these findings, the organization is encouraged to prioritize employee competence development and improvements to its compensation system to enhance employee performance in a measurable and sustainable manner.