The Nexus of Compensation and Work Motivation: Impact on Employee Performance within Organizations

Abstract

This literature review aims to examine the impact of compensation and work motivation on employee performance. The review methodically analyzed 15 relevant studies, considering various aspects including research issue, methodology, commonalities, and potential avenues for further research. Among the selected studies, eight employed quantitative research methods, three utilized descriptive approaches, two were based on explanatory research, one combined descriptive and causal analysis, and the remaining study adopted a qualitative research approach. The collective findings from these studies indicate a strong and positive correlation between compensation, work motivation, and employee performance. Additionally, it is noteworthy that several other factors, such as work discipline and job satisfaction, were also identified as contributing positively to employee performance. This comprehensive review offers valuable insights into the multifaceted relationship between compensation, work motivation, and employee performance while suggesting promising directions for future research in this domain.