| dc.description.abstract | The hospitality industry requires employees to perform optimally in order to maintain service quality. One key factor influencing employee performance is compensation. However, the effectiveness of compensation in improving performance also depends on employees’ work motivation. This study aims to examine the effect of compensation on employee performance, with work motivation as a moderating variable among employees of Hotel Madani Medan. This research used a quantitative approach with a survey method. The participants consisted of 70 employees from various divisions of Hotel Madani Medan. Three psychological scales were utilized in this study: compensation, work motivation, and employee performance, adapted from the theories of Kreitner & Kinicki (2014), Umar (2003), and Koopmans et al. (2014). Data were analyzed using the Moderated Regression Analysis (MRA) technique. The results indicated that compensation and work motivation had a positive and significant effect on employee performance. The better compensation and the higher work motivation, the greater improvement in employee performance. On the other hand, work motivation did not moderate the relationship between compensation and performance, indicating that the effect of compensation on performance occurred independently, without being strengthened or weakened by employees’ level of work motivation. | en_US |
