International Journal of Marketing & Human Resource Research

e-ISSN: 2746-4040
Vol. 2, No. 2 April 2021

The Influence of Motivation and Work

Compensation on Employee Performance of PT
Immortal Cosmedika Indonesia Palembang Branch
Idaman Putra1)
Universitas Indo Global Mandiri, Indonesia
Email: idamanputra1@gmail.com
Abstract
This study aims to analyze the effect of motivation and work compensation on the performance of employees
of PT Immortal Cosmedika Indonesia Palembang Branch. The data used are primary and secondary data
obtained through questionnaires and interviews. The number of respondents in the study was 60 people. The
analytical method applied in this study is the coefficient of determination analysis. The results prove that
motivation (X1) has a positive effect on employee performance (Y). Compensation (X2) is also proven to have
a positive effect on employee performance (Y). This research is useful for PT Immortal Cosmedika Indonesia
Palembang Branch to improve employee performance through motivation and job compensation.
Keywords: work motivation, work compensation, employee performance
1. Introduction
1.1 Background
Cosmetics industry companies in Indonesia are increasing from year to year. This condition is
really used by cosmetic manufacturers, especially with a population of around 250 million
people, making Indonesia a promising market for cosmetic companies. The majority of
industries target consumers, mainly women, and have recently started innovating products for
men.
PT Immortal Cosmedika Indonesia is a company that provides beauty products and medicines
for hospitals, health centers and beauty clinics. PT Immortal Cosmedika Indonesia guarantees
the quality, safety and cleanliness of our products which have been recognized not only by
ASEAN countries, but also countries outside ASEAN. Due to the consistency of the quality
of our products, the demand for clients is increasing, especially dermatologists who want
cosmetics that also function for 'Treatment'. We realize that many skin problems cannot be
solved with just cosmeceutical products, therefore we established PT. Immortal
Pharmaceutical Laboratories which also have CGMP standards.
Human resources are very important assets to drive all wheels of the organization so that HR
development is placed in the highest order. To achieve the goals of a company, it is necessary
to provide motivation and compensation for employees in order to be able to improve
employee performance properly.
Based on research at PT Immortal Cosmedika Indonesia, Palembang Branch, starting from
the work motivation of employees who have not been given training so that the enthusiasm or
expertise of employees is less developed and also the compensation provided by the company
is not optimal such as facilities and benefits, and the time of receipt is not on time. Moreover,
the employee's performance has decreased due to the level of employee absenteeism, causing
the tasks assigned to them which causes overlapping of other employees so that coordination
between employees does not run smoothly. As a result of this phenomenon, the company

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experienced a decrease in employee performance, which should have been suboptimal.

1.2 Problem Formulation
Based on the background described above, the authors formulate the following problems:
1. How is the influence of motivation on employee performance at PT Immortal Cosmedika
Indonesia Palembang Branch?
2. How does work compensation affect employee performance at PT Immortal Cosmedika
Indonesia Palembang Branch?
3. How is the effect of motivation and work compensation simultaneously on performance
employees at PT Immortal Cosmedika Indonesia Palembang Branch?
1.3 Research Objectives
The purpose of this study was to determine the effect of motivation and work compensation
on the performance of employees of PT Immortal Cosmedika Indonesia Palembang Branch.
1. Analyze the influence of motivation on employee performance at PT Immortal
Cosmedika Indonesia Palembang Branch?
2. Analyze the effect of work compensation on employee performance at PT Immortal
Cosmedika Indonesia Palembang Branch?
3. Analyze the effect of motivation and work compensation simultaneously on employee
performance at PT Immortal Cosmedika Indonesia Palembang Branch?
2. Literature Review
In the first sub-sections the author will explain the theories of management and organization
as the main theory (grand theory), then study the theory of human resource management and
organizational behavior as a middle range theory, the final part of the theoretical sub-studies
is explained concerning the concept of the variables studied, namely: motivation, work
compensation and employee performance as (applied theory).
2.1 Definition of Management
Management comes from English (management) with a verb (tomanage), which is generally
defined as to take care of. Management is the science and art of managing the process of
utilizing human resources and other resources effectively and efficiently to achieve certain
goals (Susan, 2019).
According to Husaini and Fitria (2017), Management is the science and art of managing,
controlling, communicating and utilizing all existing resources in the organization by
utilizing management functions (POAC) so that organizations can achieve goals effectively
and efficiently.
2.2 Definition of Human Resource Management
Human resource management is basically how to manage human resources in order to
achieve organizational goals, managing HR is not easy because those who are managed are
people with all their tastes and consciences (Wahjono et al, 2019: 112).
According to Desler in Wahjono et al (2019), human resource management is the policies and
practices that a person needs to carry out the “people” or human resources aspect of a
management position, including recruitment, screening, training, apprenticeship and
assessment.
2.3 Definition of Organization

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According to Musfialdi (2016), states that an organization will not function effectively if
the organizational structure is not adapted to its environment. If the conditions of the
organization's environment are relatively stable, then a suitable structure is a mechanistic
structure, namely a structure that is regulated in detail, the division of tasks, authorities,
responsibilities and work relations between the organizational units. Conversely, if the
environmental conditions are unstable, so that many environmental factors cannot be
predicted in the future situation, then the appropriate organizational structure is an organic
structure with less rigid, more flexible arrangements, in the sense of the division of tasks,
powers, responsibilities, and working relationships between units.
2.4 Definition of Motivation
Motivation (motivation) comes from the Latin word (Movere) which means the impetus of
the driving force or force that causes an action to act. The word (Movere) in English is often
equated with (motivation) which means giving motives, arousing motives, or things that give
rise to encouragement or circumstances that give rise to encouragement. Motivation is
literally understood as giving employees a motive to work because they have a motive. The
motive is related to the aims or objectives to be achieved. In general, the main motive for
employees to work is looking for income, developing self-potential, actualization, and the
need for appreciation (Sumardjo, 2018: 135).
2.5 Motivation Indicators
Several motivational indicators according to George & Jones in (Halim & Adreani, 2017: 2),
namely:
1. Employee Behavior
The ability of employees to choose the work behavior they will choose. Good employee
behavior at work shows that employees are motivated at work.
2. Employee Business
Describes how hard a person works to demonstrate the behavior he chooses. Work motivation
is carried out not only so that employees show useful behavior for the company but also so
that employees work hard for the company.
3. Employee Persistence
Employee persistence refers to the behavior of someone who still wants to work despite
obstacles, problems, and obstacles. High employee persistence shows that employees have
high motivation.
4. Training
A planned effort to facilitate learning about work related to employee knowledge, skills and
behavior.
2.6 Definition of Compensation
Compensation is the entire reward received by employees as an appreciation for the
contributions that have been given to the company, both financial and non-financial.
According to Suparyadi's opinion in Halim and Andreani (2017), compensation can be
grouped into two, namely:
1) Direct compensation is a reward given to an employee as long as the employee is still

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actively working in a company. Direct compensation can be divided into two types,
namely:
a. Financial compensation which includes:
- Salary
- Wages
- Allowance
- Incentives
b. Non-financial compensation is compensation in the form of facilities provided to
employees while actively carrying out their duties or jobs at the company.
2) Indirect compensation is a reward given as a reward for the services of an employee who
has ended his tenure at the company due to retirement or death. Indirect compensation
can be divided into two, namely:
a. Financial compensation
1. Full retirement
2. Early retirement
3. Severance pay
4. Widow/two persons pension
b. Non-financial compensation, namely indirect compensation provided to employees who
are fully retired or retired early in the form of health insurance.
2.7 Work Compensation Indicator
According to Singodimedjo in Aprilia (2017), there are 4 compensation indicators to measure
individual employee performance, namely:
a. Salary
Salary is compensation given to an employee on a regular basis (once a month), an
employee who receives a salary, generally has become a permanent employee and has
passed the probationary period.
b. Allowance
Allowances are compensation provided by the company to employees, because these
employees are considered to have participated well in achieving the company's goals. For
example, work, family, transportation, housing allowances etc.
c. Incentives or bonuses
Compensation is given to certain employees, because of the success of their
achievements. For example, an incentive of 5% of the salary of employees who make
sales exceeds the predetermined target.
d. Amenities
Compensation in the form of the provision of this facility usually does not stand alone,
but at the same time in addition to money or material compensation. However, not all
companies are able to provide facilities for their employees because it relates to the

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financial capabilities of the company concerned. In general, the types of facilities that are
often provided by various companies include: work environment, health, shuttle, lunch
and housing facilities.
2.8 Definition of Employee Performance
Performance is an important aspect in achieving a goal. The achievement of maximum goals
is the result of good team or individual performance, and vice versa, failure to achieve the
goals that have been formulated is also the result of suboptimal individual or team
performance. According to Hasibuan in Sudaryo, et al. (2018), said that performance is a
result of work achieved by a person in carrying out the tasks assigned to him.
Meanwhile, according to Tika in Sudaryo ddk (2018: 204), performance is the result of the
work/activity function of a person or group in an organization that is influenced by various
factors to achieve organizational goals within a certain period of time.
2.9 Employee Performance Indicators
Employee performance indicators according to Hendri Simamora in Jayanti (2016), are as
follows:
1. Quantity
2. Quality
3. Punctuality of Time
4. Attendance
5. The Ability to Work Together
3. Research Methods
3.1 Research Scope
In this study will discuss issues related to the influence of Work Motivation and
Compensation on Employee Performance at PT Immortal Cosmedika Indonesia Palembang
Branch.
3.2 Population & Sample
The population and sample used in this study are as follows:
1. The population used is all 62 employees of PT Immortal Cosmedika Indonesia
Palembang.
2. The sample technique used is saturated sampling, by making all members of the
population the research sample. Based on these techniques, the number of samples used
in this study were 62 respondents.
4. Results and Discussion
Based on the questionnaire distributed to respondents, the following discussion will be
carried out which aims to discuss the research problem and answer the research objectives.
Respondents are all employees at PT Immortal Cosmedika Indonesia Palembang Branch with
a total of 62 people and data management using the help of SPSS V.20 for windows, the
following research is obtained.
4.1 Validity Test

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Used to measure whether a questionnaire is valid or not. A questionnaire is said to be valid if

the questions on the questionnaire are able to reveal something that will be measured by the
questionnaire. The validity test is calculated by comparing the calculated r value (correlated
item-total correlation) with the r table value. if r count > r table and the value is positive then
the item or question is declared valid (Ghozali, 2013).
4.2 Reliability Test
Data to measure a questionnaire which is an indicator of the variable. A questionnaire is said
to be reliable or reliable if someone's answer to a question is consistent or stable over time.
Reliability concerning the consistency of answers if tested repeatedly on different samples.
SPSS provides facilities to measure reliability with the Cronbach Alpha (α) statistical test of a
construct or variable that is said to be reliable if it provides a Cronbach Alpha statistical value
> 0.60 (Ghozali, 2013).
Table 1. Table Reliability Test Results

Cronchbach’s Provisions
Variable Results
Alpha rtabel

Motivation 0,907 0,6 Reliable

Work Compensation 0,808 0,6 Reliable

Employee
0,850 0,6 Reliable
Performance

The results of the reliability test show that all variables have a fairly large alpha coefficient,
which is above 0.6, so that it can be said that all measurement concepts for each variable are
from the reliability coefficient so that further items in each of these variable concepts are
suitable for use as a measuring tool.
4.3 T test
The t test is a statistical test method used to test the influence of the independent variables
partially on the dependent variable, using a formula (Sugiyono, 2011:223).
From the analysis, it is known that the influence of motivation (X1) on employee
performance (Y) from the calculation results shows that the t-value > t-table < 0.05, namely
4.580 > 1.671, this means that Ho is rejected and H1 is accepted, so it can be concluded that
motivation has a positive effect on employee performance.
From the results of the analysis that the effect of compensation (X2) on employee
performance (Y) from the calculation results, it is known that the t-value > t-table < 0.05,
namely 4.516 > 1.671, this means that Ho is rejected and H1 is accepted, so it can be
concluded that Work compensation has a positive effect on employee performance.
4.4 Test F
The F test is a test method in statistics that is used to test the magnitude of the influence of all
independent variables together on the dependent variable (Sugiyono, 2017).
Based on the test results, it shows that sig F of 0.000 < 0.05 and Fcount of 13.918 is greater
than Ftable of 3.14 (13.918 > 3.14), it can be stated that H3 is accepted. Thus it can be

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concluded that there is an influence of motivation and work compensation on the

performance of employees of PT Immortal Indonesia Palembang branch.
4.5 Multiple Linear Regression Analysis
Table 2. Table Multiple Linear Regression Test Results

Standardiz
Unstandardized
ed
Coefficients
Coefficients
Model t Sig.
Std.
B Beta
Error

20,08
(Constant) 5,405 3,716 ,000
5

Motivation ,218 ,091 ,323 2,411 ,019

Work
Compensatio ,341 ,147 ,310 2,312 ,024
n

Based on the table above, the regression coefficient (B) variable Motivation (X1) and Work
Compensation (X2) has a positive regression coefficient value, it can be explained that the
coefficient with a positive value means that Motivation (X1) and Work Compensation (X2)
have a unidirectional influence on Employee Performance (Y).
A constant of 20.085 means that if there is no increase in the Motivation (X1) and Work
Compensation (X2) variables, then the Employee Performance (Y) is still 20.085.
Meanwhile, by looking at the regression coefficient that the Motivation variable (X1) is 0.218
and the Compensation (X2) is 0.341, it means that any change or increase in the Motivation
variable (X1) and Work Compensation (X2) is 100%, it will also result in an increase in the
Employee Performance variable of 21, 8% for the Motivation variable (X1) and 34.1% for
the Work Compensation variable (X2).
4.6 Correlation Coefficient R
Table 3. Table of Correlation Coefficient Test Results R

Adusted R Std. Error Of

Model R R Square Durbin – Watson
Square the Estimate

1 ,566 ,321 ,298 2,747 1,066

The results of the study using the correlation coefficient (R) analysis obtained a value of
0.566. So it can be concluded that there is a moderate relationship between motivation and
work compensation variables on the employee performance of PT Immortal Cosmedika
Indonesia Palembang Branch. (56.6%)
4.7 Coefficient of Determination R2

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Table 4. Determination Coefficient Test Results R2

Adusted R Std. Error Of

Model R R Square Durbin – Watson
Square the Estimate

1 ,566 ,321 ,298 2,747 1,066

The results of the study using the analysis coefficient of determination (R2) amounted to
0.321. This shows that the contribution of the Motivation (X1) and Work Compensation (X2)
variables can explain the Employee Performance (Y) variable by 32.1% while the remaining
67.9% can be explained as being influenced by other variables not included in this study.
5. Conclusion and Suggestions
5.1 Conclusion
Based on the findings in this study, the conclusions that can be put forward based on the data
analysis and discussion that have been described in the previous chapter can draw the
following conclusions:
a. The results of the study using the t test on the Motivation variable (X1) obtained the
value of tcount > ttable (4.580 > 1.671) and a significant level < 0.05 (0.000 < 0.05). So it
can be concluded that the variables of motivation and work compensation have a positive
and significant effect on employee performance at PT Immortal Cosmedika Indonesia
Palembang Branch.
b. The results of the study using the t test on the compensation variable (X2) obtained from
the results of the above calculation, it is known that the value of t-count > t-table < 0.05,
namely 4.516 > 1.671, so it can be concluded that Work Compensation has a positive
effect on employee performance at PT Immortal Cosmedika Indonesia Palembang
Branch.
c. Based on the results of the study, it shows that sig F of 0.000 < 0.05 and Fcount of
13.918 is greater than Ftable of 3.14 (13.918 > 3.14), it can be stated that H3 is accepted.
Thus it can be concluded that there is an influence of motivation and work compensation
on the performance of employees of PT Immortal Indonesia Palembang branch.
d. The results of the study using the correlation coefficient (R) analysis obtained a value of
0.566. So it can be concluded that there is a moderate relationship between motivation
and work compensation variables on the employee performance of PT Immortal
Cosmedika Indonesia Palembang Branch. (56.6%)
e. The results of the study using the analysis coefficient of determination (R2) amounted to
0.321. This shows that the contribution of the Motivation (X1) and Work Compensation
(X2) variables can explain the Employee Performance (Y) variable by 32.1% while the
remaining 67.9% can be explained as being influenced by other variables not included in
this study.
5.2 Suggestions
a. Motivation and Work Compensation at PT Immortal Cosmedika Indonesia Palembang
Branch is expected to continue to increase so that employee performance also increases,
placing employees according to their skills so they can do their jobs and duties properly.
b. It is hoped that this research can further discuss in depth the effect of motivation and
work compensation on the employee performance of PT Immortal Cosmedika Indonesia

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Palembang branch. And it is also expected to be able to continue and develop research in
more depth, for example by adding other more influential variables (leadership style,
training, etc.).
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