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


  • Refika Tiara Universitas Gadjah Mada



Compensation, Work Motivation, Employee Performance, Literature Review


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.


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Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371–406.

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Noviarita, H., Ahmad, R. Bin, & Fautau, I. (2021). The Impact of Leadership, Motivation, Discipline, and Wages on The Performance of Sharia Bank Employees. Economica: Jurnal Ekonomi Islam, 12(1), 141–174.

Rudiansyah, Wahyu, & Sulaiman. (2022). The Role of Work Culture in Mediating the Effect of Professional Competence and Work Motivation on Teacher Performance. International Journal of Social Science and Human Research, 05(06), 2321–2327.

Suhartono. (2015). The effect of work motivation factors on job satisfaction in xy company. IBuss Management, 3(1), 14–20.




How to Cite

Tiara, R. (2023). The Nexus of Compensation and Work Motivation: Impact on Employee Performance within Organizations. Eastasouth Proceeding of Economics and Business, 1(1), 07–12.