Remuneration, Work Motivation, and Employee Performance in Gorontalo Hospitals
DOI:
https://doi.org/10.55657/iefj.v5i2.382Keywords:
Remuneration; Work motivation; Employee performance; Hospital; PLS-SEMAbstract
This study examines the effects of remuneration on work motivation and employee performance and tests whether work motivation mediates the remuneration-performance relationship in two hospitals in Gorontalo City, Indonesia. A quantitative cross-sectional survey was conducted with 150 employees, comprising 75 respondents from Sitti Khadijah Hospital and 75 from Prof. Dr. H. Aloei Saboe Regional General Hospital. Data were collected using a five-point Likert questionnaire and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). Remuneration positively affected work motivation (β = 0.1083; t = 1.620; p = 0.0729) and employee performance (β = 0.0889; t = 1.435; p = 0.1049), but the effects were not significant. Work motivation had a positive and significant effect on performance (β = 0.2778; t = 5.157; p < 0.001). The indirect effect of remuneration on performance through motivation was not significant (β = 0.062; t = 1.444; p = 0.149), indicating no mediation. The model explained 13.33% of the variance in employee performance and 2.40% of the variance in work motivation. The novelty lies in showing that, across two hospitals with different organizational characteristics, remuneration alone did not explain employee performance, whereas motivation emerged as the stronger behavioral mechanism. The findings support integrated reward policies that combine fair and transparent remuneration with recognition, competency development, supportive leadership, and employee involvement.
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