Influence of Leadership Style, Financial Compensation, Workload, and Work Stress on Performance with Job Motivation as an Intervening Variable

Abstract

Aims: The low employee performance in this increasingly competitive era remains a significant issue in Human Resource Management (HRM). The purpose of this research is to analyze the influence of leadership style on employee performance with motivation as an intervening variable. Study Design: This study falls under the category of quantitative research with a population of all marketing staff working at PT BRI Banjarnegara Branch, totaling 150 individuals. The sample for this study was determined using the Slovin formula and resulted in 109 participants. Methodology: The hypothesis testing is conducted using the Partial Least Square (PLS) based Structural Equation Model (SEM) approach. By employing the PLS-based SEM approach, researchers can analyze the relationships among the variables in the study and test the proposed hypotheses. Results: The results of the study show that leadership style, workload, work stress have a positive effect on employee motivation, and financial compensation has a negative effect on employee motivation. However, leadership style and workload do not have a significant effect on employee performance. Meanwhile, financial compensation and work stress have a positive influence on employee performance. In addition, work motivation has a positive influence on employee performance, leadership style has a positive influence on employee performance with motivation as an intervening variable, financial compensation has a negative influence on employee performance with motivation as an intervening variable.