Compensation, Work Discipline, and Work Motivation as Drivers of Employee Productivity in MSMEs

Sampurnawati; Adam Saputra; Akhmad Aspiannor

doi:10.61987/jemr.v5i5.2593

Authors

Sampurnawati Sekolah Tinggi Ilmu Manajemen Indonesia Banjarmasin, Indonesia
Adam Saputra Sekolah Tinggi Ilmu Manajemen Indonesia Banjarmasin, Indonesia
Akhmad Aspiannor Sekolah Tinggi Ilmu Manajemen Indonesia Banjarmasin, Indonesia

DOI:

https://doi.org/10.61987/jemr.v5i5.2593

Keywords:

Compensation, Employee Productivity, Work Discipline, Work Motivation, MSMEs

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in supporting economic growth and preserving cultural heritage, making employee productivity essential for business sustainability and competitiveness. However, maintaining productivity requires effective human resource management practices that address employees’ rewards, discipline, and motivation. This study aimed to examine the effects of compensation, work discipline, and work motivation on employee productivity, both partially and simultaneously. A quantitative approach with an explanatory research design was employed. Data were collected through questionnaires using a five-point Likert scale from 100 employees selected through purposive sampling based on a minimum work experience of more than five years. The data were analyzed using multiple linear regression with SPSS version 21. The results revealed that compensation, work discipline, and work motivation each had a positive and significant effect on employee productivity. Work discipline emerged as the most dominant predictor, while the simultaneous test confirmed the significance of the overall regression model. The coefficient of determination (R²) of 0.792 indicated that the three independent variables explained 79.2% of the variation in employee productivity. These findings imply that MSME owners should implement fair compensation systems, strengthen workplace discipline, and foster employee motivation to improve productivity and support sustainable business development.

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