Abstract :
Human resource in the company has a very important role. Business nowadays
are forced to create high employee?s performance to boost company development. A
company has to create and increase its performance to maintain its existence. In its
effort to increase employee?s performance, company implements many ways such as
giving a proper compensation, motivation, create support working area, provide
education and training. Nowadays, business competition that had become tighter make
the company confronted with the challenge of maintaining its viability.
This research was held in PT. Medco Energi International Tbk. The research use
Compensation as Independent Variable, Motivation as Intervening Variable, and
Performance as Dependent Variable. The goal of this research is to analyse
compensation?s influence to employee?s performance through motivation as intervening
variable. Sample used in this research are 52 employees of PT.Medco Energi
International Tbk using Simple Random Sampling method. Analysis used in this research
are pretest, validity test, reliability test, classic assumption test, model test, regresion
and intervening test.
The data that had been processed produce regression equation bellow Y1 =
1,796 + 0,708X1, Y2 = 1,906 + 0,700X1 based on t-test and the first linier regression
above show us that compensation has a positive and significant influence to
performance. The second linier regression show us that compensation has a positive and
significant influence to motivation. Based on those two linier regressions we can do the
intervening test. This test shows us that motivation can be an intervening variable
because the standardized coefficient?s calculation for indirect influence of compensation
to performance through motivation is bigger than calculation for direct influence of
compensation to performance. Keyword : compensation, motivation, performance.