Analysis of The Effect of Work Motivation and Performance Benefits on Employee Performance with Job Satisfaction as A Mediation Variable

Abstract

This study aims to analyze the influence of work motivation and performance-based allowances on employee performance, as well as to examine the role of job satisfaction as a mediating variable in this relationship among employees at the Asam Baru and Terawan Community Health Centers. There is a significant gap between lower and higher job grades in terms of the amount of additional income received by employees. Employees in job grades 1 through 5 receive relatively small allowances, whereas a sharp increase is only evident in job grades 10 and above, reaching over Rp. 14,000,000 in the highest job grade. This phenomenon indicates a potential disparity in perceptions of fairness and satisfaction among employees, particularly for those at lower levels who bear workloads not significantly different from their counterparts. This situation could lead to a decline in work motivation and overall performance if not balanced by a system of non-financial rewards and a supportive work environment. Therefore, it is important to analyze how performance allowances, motivation, and the work environment influence employee performance, as well as the extent to which job satisfaction mediates these relationships at the Asam Baru Community Health Center. The urgency of this study is grounded in real-world phenomena, namely the existence of significant disparities in the provision of performance-based allowances based on job grade that have not been matched by a proportional increase in employee performance, as well as inconsistencies in the findings of previous studies regarding the direct influence of work motivation and performance-based allowances on performance. This study employs a quantitative approach, with data collected via a questionnaire distributed to 97 civil servant respondents at both Community Health Centers. Data analysis was conducted using the Structural Equation Modeling Partial Least Squares (SEM-PLS) method with SmartPLS 3.0 software. The research results revealed several critical findings: first, work motivation has a positive and significant effect on job satisfaction (β = 0.537; p = 0.000) as well as employee performance (β = 0.639; p = 0.000); second, performance-based allowances have a positive and significant effect on job satisfaction (β = 0.401; p = 0.000), but were found not to have a direct effect on employee performance (β = -0.040; p = 0.677), indicating that employees tend to perceive allowances as routine administrative entitlements rather than performance-based incentives; third, job satisfaction was found to have a positive and significant effect on employee performance (β = 0.325; p = 0.006); fourth, job satisfaction significantly mediates the effect of work motivation on performance (β = 0.175; p = 0.006) as well as the effect of allowances Third, job satisfaction was found to have a positive and significant effect on employee performance (β = 0.325; p = 0.006); fourth, job satisfaction significantly mediates the effect of work motivation on performance (β = 0.175; p = 0.006) as well as the effect of performance-based allowances on employee performance (β = 0.131; p = 0.029). This research model has strong predictive power, as indicated by an R-Square value of 0.791 for employee performance and a Q-Square value of 0.936. These findings have important theoretical and practical implications: theoretically, job satisfaction has been proven to be a crucial psychological mechanism mediating the impact of financial and motivational incentives on performance outcomes; Practically, Puskesmas management needs to redesign the performance allowance system to ensure it is truly based on measurable and equitable outcomes, while simultaneously strengthening strategies to enhance intrinsic motivation through recognition of achievements, competency development, and the creation of a supportive work culture to promote sustainable employee satisfaction and performance.