The Effect of Work Environment, Work Motivation, and Compensation on Employee Performance
JEL Classification: J24, J33, M12, M54
Abstract
This study aims to examine the influence of work environment, work motivation, and compensation on employee performance through a literature review approach. The study uses a literature review method by analyzing journals published in the last ten years. The population consists of previous relevant studies, with samples from national and international journals discussing the related variables. The research design is descriptive with content analysis techniques to identify patterns of relationships among variables. The results show that work environment, work motivation, and compensation generally have a positive and significant effect on employee performance, both partially and simultaneously. The novelty lies in the systematic mapping of findings from various studies to provide a comprehensive picture of the relationships among these variables. Companies are advised to improve the quality of the physical and non-physical work environment, enhance fair compensation systems, and manage motivation factors effectively.
References
Al-Anzi, N. M. (2009). Work environment and its impact on employee performance. Business Intelligence Journal, 2(2), 120–123.
Andriani, A., & Faris, R. M. (2022). Pengaruh kompensasi terhadap kinerja karyawan. Seminar Nasional Ekonomi dan Akuntansi, 1(1), 10–15.
Arabiyat, T., Sandri, S., & Alkhatib, W. (2017). Global entrepreneurship monitor: Jordan national report 2016/2017. Jordan Enterprise Development Corporation and Centre for Strategic Studies.
Athapaththu, D. A. M. R. C. J., & Rebecca, E. (2025). The impact of leadership style and work environment on employee performance: Work motivation and organizational citizenship behavior. International Journal of Research and Innovation in Social Science, 9(5), 895–910. https://doi.org/10.47772/IJRISS.2025.90500074
Bernardin, H. J., & Russell, J. E. A. (1992). Human resource management: An experiential approach. McGraw-Hill.
Caputo, A., Mehtap, S., Pellegrini, M., & Al-Refai, R. (2015). Supporting opportunities for female entrepreneurs in Jordan. International Journal of Entrepreneurship and Small Business, 6(4), 1–18. http://dx.doi.org/10.1504/IJESB.2016.073991
Chien, G. C., Mao, I. N., & Chang, W. (2020). The effect of work motivation and organizational commitment on job performance. Asia Pacific Management Review, 25(4), 199–207. https://doi.org/10.54099/ijlpg.v1i2.437
Citra Arta, N., Supartha, I. W., & Dewi, I. G. (2022). Literature study: The influence of compensation and work environment on employee job satisfaction. American Journal of Humanities and Social Sciences Research, 6(4), 112–118.
Daksa, M., Yismaw, M., Lemessa, S., & Hundie, S. (2018). Enterprise innovation in developing countries: An evidence from Ethiopia. Journal of Innovation and Entrepreneurship, 7(6), 1–18.
Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227–268. https://doi.org/10.1207/S15327965PLI1104_01
Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal, 39(4), 949–969. https://doi.org/10.2307/256718
Dessler, G. (2017). Human resource management. Pearson Education.
Dwianto, A. S., & Purnamasari, P. (2019). Pengaruh kompensasi terhadap kinerja karyawan pada PT Jaeil Indonesia. Jurnal Ekonomi & Ekonomi Syariah, 2(2), 209–223.
Fahmi, I. (2016). Manajemen kinerja: Teori dan aplikasi. Alfabeta.
Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331–362. https://doi.org/10.1002/job.322
Gonthier, J., & Chirita, G. (2019). The role of corporate incubators as invigorators of innovation capabilities in parent companies. Journal of Innovation and Entrepreneurship, 8(8), 1–18. https://doi.org/10.1186/s13731-019-0109-2
Gunawan, P. D., Sabudi, I. N., & Sihombing, I. H. (2024). Pengaruh lingkungan kerja terhadap kinerja karyawan Hotel Fairfield By Marriott Bali South Kuta. Jurnal Sosial Teknologi, 4(10), 816–825. https://doi.org/10.59188/jurnalsostech.v4i10.1370
Hermawan, R., & Rahadi, D. R. (2021). Analysis of the work environment and employee performance improvement through motivation: A literature study. Tirtayasa Ekonomika, 16(1), 118–124. https://dx.doi.org/10.35448/jte.v16i1.10090
Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work (2nd ed.). Wiley.
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1). https://doi.org/10.9707/2307-0919.1014
Jufrizen. (2016). Efek mediasi kepuasan kerja pada pengaruh kompensasi terhadap kinerja karyawan. Jurnal Ilmiah Manajemen dan Bisnis, 17(1). https://doi.org/10.30596/jimb.v17i1.1209
Kalaldeh, F., & Al-Homsi, J. (2019). Jordan’s startup economy: Assessing the economic contribution and potential of tech and tech-enabled startups. GIZ GmbH.
Kharouf, A., Dababneh, A., & Akhal, R. (2007). Women business owners in Jordan: Characteristics, contributions and challenges. The Center of Arab Women for Training and Research and The International Finance Corporation.
Nicuță, E.-G., Opariuc-Dan, C., Diaconu-Gherasim, L. R., & Constantin, T. (2025). Linking trait gratitude to employees’ performance and work motivation: A two-wave longitudinal study. Personality and Individual Differences, 246, 113310. https://doi.org/10.1016/j.paid.2025.113310
Nugraha, A., & Tjahjawati, S. S. (2017). Pengaruh kompensasi terhadap kinerja karyawan. Jurnal Riset Bisnis dan Investasi, 3(3), 24–32. https://doi.org/10.35697/jrbi.v3i3.942
Omet, G., Shami, M., & Bino, A. (2015). Entrepreneurship in Jordan: Regional analysis and envisaged role. Research Journal of Business and Management, 2(3), 323–333. http://dx.doi.org/10.2139/ssrn.2682897
Pramesti, M., & Suarmana, I. W. (2024). The influence of work environment on employee performance at Novotel Bali Nusa Dua. International Journal of Business Management, 19(1), 78–85. http://dx.doi.org/10.35912/jspp.v3i1.3243
Pramesti, N. K. (2025). Pengaruh lingkungan kerja terhadap kinerja karyawan di Novotel Bali Nusa Dua. Jurnal Studi Perhotelan dan Pariwisata, 3(1), 21–29. https://doi.org/10.35912/jspp.v3i1.3243
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717–725. https://doi.org/10.1016/S2212-5671(15)00524-9
Rivai, V., & Sagala, E. J. (2009). Manajemen sumber daya manusia untuk perusahaan: Dari teori ke praktik. Rajawali Pers.
Robbins, S. P., & Judge, T. A. (2013). Organizational behavior (15th ed.). Pearson Education.
Sathishkumar, V., Krishya, S., & Vignesh, A. (2025). A study on impact of compensation towards employee performance and motivation with reference to Teemage Builders-Tiruppur. International Journal of Creative Research Thoughts, 13(3), 859–864. https://www.ijcrt.org/IJCRT25A3363
Sintawati, D., Meydiana, D., Paramitha, N., Yahfis, W., & Putri, A. R. (2022). Pengungkapan peristiwa setelah periode pelaporan pada masa pandemi Covid-19 terhadap perusahaan telekomunikasi di Bursa Efek Indonesia tahun 2020. Transekonomika, 2. https://transpublika.co.id/ojs/index.php/transekonomika/issue/view/12
Suhardi. (2019). Pengaruh motivasi kerja, kompetensi, lingkungan kerja dan kompensasi terhadap kinerja karyawan PT Asuransi Jiwa di Kota Batam dengan organizational citizenship behavior sebagai variabel intervening. Jurnal Bisnis dan Ekonomi, 4(2), 296–315. https://doi.org/10.22216/jbe.v4i2.3670
Trisna, A., & Guridno, E. (2021). Pengaruh kompensasi, motivasi, dan lingkungan kerja terhadap kinerja karyawan PT. Saiba Cipta Selaras Kota Jakarta Selatan. Oikonomia, 17(2). https://doi.org/10.47313/oikonomia.v17i2.1276
Vroom, V. H. (1964). Work and motivation. Wiley.
Wibowo, T. (2023). Cultural values and employee motivation: Evidence from Indonesia. Asian Business & Management, 22(2), 256–274. https://doi.org/10.1057/s41291-023-00175-9
Copyright (c) 2025 Journal La Bisecoman

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.



