The EFFECT OF COMPENSATION AND WORK ENVIRONMENT ON LOYALTY THROUGH MOTIVATION AS AN INTERVENING VARIABLE AT THE REGIONAL SECRETARIAT OF JEMBER REGENCY
Keywords:
Compensation, Work environment, Work motivation, Job loyalty
Abstract
This study aims to analyze the influence of compensation and work environment on the loyalty of Jember Regency Regional Secretariat employees, both directly and through work motivation as an intervening variable. The phenomenon of declining ASN loyalty due to low motivation, perception of unfair compensation, and suboptimal working conditions is the background of the research. A quantitative approach is used through surveys and Partial Least Square (PLS) analysis. The results of the study show that compensation and work environment have a positive and significant effect on work motivation, and directly increase employee work loyalty. In addition, work motivation has been shown to significantly mediate the influence of compensation and the work environment on loyalty, suggesting that motivation is an important psychological factor in strengthening the relationship between organizational rewards and employee loyalty. These findings indicate that the increase in ASN loyalty does not only depend on financial aspects, but is also influenced by the perception of fairness, comfort of the work environment, and motivational encouragement from leaders. Therefore, local governments need to implement fair compensation policies, create a healthy and collaborative work environment, and strengthen employee motivation through a sustainable performance coaching and reward system
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References
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Legona, R. B., & Effendi, M. S. (2024). The determinants of employee loyalty are mediated by work motivation and job satisfaction at Pt.Laboratorium Solusi Indonesia. Ikraith-Economics, 7(1), 56–66. Https://Doi.Org/10.37817/Ikraith-Ekonomika.V7i1.3280
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Mulia Sari, A., & Andri, S. (2023). The Influence of Work Environment and Financial Compensation on Employee Loyalty through Variable Intervention Motivation at Pt. Gersindo Minang Plantation Pasaman Barat West Sumatra. Scientific Journal of Educational Vehicles, 9(10), 92–105.
Nathania, F., Ramadhan, Y., & Jus'at, I. (2023). The Effect Of Compensation, Work Environment, Career Development On Job Satisfaction With Employee Work Motivation As An Intervening Variable In Rs X. Journal of Health Sciences, 4(9), 75–89. Https://Doi.Org/10.46799/Jhs.V4i9.1081
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Pujianto, U. & (2024). The Importance Of Using A Recruitment System On Employee Loyalty Through Learning Capability. Economics and Business Innovation, 06(1), 25–34. Https://Journalpedia.Com/1/Index.Php/Ieb
Rahmawati, G., Yuningsih, E., & Djuanda Bogor, U. (2024). The Effect Of Compensation And Work Environment On Employee Loyalty With Job Satisfaction As An Intervening Variable. Costing: Journal Of Economics, Business And Accounting Volume, 7, 7924–7943.
Reners, R., Harahap, P., & Sugiarti, R. (2024). The Effect Of Compensation, Career Development, And Work-Life Balance On Employee Loyalty With Job Satisfaction As An Intervening Variable. Indonesian Journal of Social Technology, 5(3), 860–878. Https://Doi.Org/10.59141/Jist.V5i3.954
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Published
2026-05-02
How to Cite
Rosianti, H., Nursaid, N., & Martini, N. N. (2026). The EFFECT OF COMPENSATION AND WORK ENVIRONMENT ON LOYALTY THROUGH MOTIVATION AS AN INTERVENING VARIABLE AT THE REGIONAL SECRETARIAT OF JEMBER REGENCY. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 9(2), 10532-10554. https://doi.org/10.31538/iijse.v9i2.9715
Section
Articles
Copyright (c) 2026 Heni Rosianti, Nursaid Nursaid, Ni Nyoman Putu Martini
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