FACTORS INFLUENCING MOTIVATION AND IMPACT ON EMPLOYEE PERFORMANCE (Case: National Amil Zakat Agency in Dhamsraya County)

ABSTRACT. This study aims to determine the effect of compensation and competence on work motivation andits impact on employee performance. This research is motivated by the low performance of agency performance,employee performance is not as expected, employee motivation is still relatively low, education and trainingreceived by employee is not effective, competence and compensation are not satisfactory, and employeediscipline is still low.The research method with a quantitative approach with the path analysis method. Data collection techniqueswith questionnaires, observation and interviews. The respondents of this study were 42 employees of theNational Amil Zakat Agency in Dharmasraya Regency. The sampling method uses the total sampling method inwhich the entire population in this study is the research sample. Hypothesis testing was calculated with the IBMStatistical Package for Social Science (SPSS) program version 24.0.The results of this study found that compensation has a significant effect on employee work motivation,competence has a significant effect on employee work motivation, work motivation has a significant effect onemployee performance, compensation has a significant effect on employee performance, competence has asignificant effect on employee performance, compensation has no significant effect on employee performancewith work motivation as an intervening variable and competence does not significantly effect on employeeperformance with work motivation as an intervening variable in the National Amil Zakat Agency inDharmasraya Regency.

Keywords: compensation, competence, work motivation, employee performance