The Impact of Compensation, Work Discipline, and Work Motivation on Employee Performance (Case study on students working in the MSME sector)

Abstract


INTRODUCTION
If you pay attention to the business competition that occurs in Indonesia every year, it has increased.This is what gives encouragement to MSME actors to be able to create satisfaction from consumers for the products and services provided.In an era like this, where technology has developed rapidly, advanced technological developments require Micro, Small and Medium Enterprises (MSMEs) to have adequate employee performance in order to be able to compete with other fellow employees.Employee performance is one of the things that is needed in improving and even developing a form of business that is built through the contributions of these employees.However, MSMEs in Indonesia can be said to be poor compared to large businesses and MSMEs in developed countries (Efendi, Rifa'i, et al., 2020).This could have happened due to the low intensity of existing Human Resources (HR) in terms of quality.In addition, the lack of desire of individuals with good quality HR to choose to become employees in the MSME sector.
Currently students are assessed as individuals who are starting to enter the world of adults, where responsibility and independence are already able to be carried by themselves so that not a few of the millions of students who are studying at tertiary institutions in Indonesia, especially in the province of South Kalimantan, are starting to realize that they are taking advantage of the free time they have.they have for work.The desire that is owned in utilizing free time, of course, there are several factors that cause it.The factors that cause students to choose to work while studying are so that they earn their own income to meet their needs because getting your own hard-earned money is more satisfying than asking your parents (Tumin et al., 2020).
Not a few of the students who choose to work while pursuing education or studying determine what type of work they can do so that it will not interfere with lectures.MSMEs are one of the job sectors that are in great demand by people who are currently unemployed and even students.This is because the MSME sector is divided into several fields so that job seekers such as students can adapt to their respective skills or expertise.(Fahraini & Syarif, 2022).In addition, students also choose MSMEs as a E3J (Economic Education and Entrepreneurship Journal) (p-ISSN : 2579-5902) (e-ISSN : 2775(e-ISSN : -2607) ) Volume 6, Number 1,[71][72][73][74][75][76][77][78][79][80][81][82] place for them to get additional income, because in carrying out lectures while working, of course, they have to arrange the time according to the lecture schedule so that the work being carried out does not interfere with study time or learning hours while in college.
Employees who do work, of course, must always make a good contribution to their workplace.However, to increase the contribution of employees, compensation is needed to be given to them with the aim that workers as employees have high enthusiasm when carrying out their work and likewise for students who choose to work while studying.Attractive compensation can encourage employees to be more productive while delivering performance and forming quality employees (Daly, 2019).
The character of discipline is a character that sometimes already exists or is attached to every individual, especially for students.Because students in taking education in lectures, of course, instill the character of discipline in them.Thus, the existence of a disciplinary character becomes part of the contribution of students or employees to improve the quality of their performance.The sense of responsibility to employees for the tasks carried out can be illustrated through organized work discipline and vice versa.While doing work, of course there is something that supports or motivates someone to carry out their work with good performance.With this motivation, it is able to make employees enthusiastic in carrying out their duties while working.With the existence of work motivation that is able to influence the performance of employees (Pak et al., 2019).
Based on the previous findings, it can be seen that with the existence of compensation, work discipline behavior, and the existence of work motivation have both direct and indirect influence on employee performance.Thus, this research aims to be able to determine the performance of employees in carrying out their work (students as employees) by looking at compensation, work discipline, and work motivation.By increasing the performance of employees in an MSME, it will grow good results, namely being able to improve the economy of a country so that it can reduce the problem of poverty.
Performance is the result of work or the extent to which employees as a whole carry out or carry out work successfully over a certain period of time, compared to standards, goals and work standards set by the company and mutually agreed upon (Zaeni et al., 2022).Employee performance is closely related to employee performance or job level in the company where the employee works (Kuswati, 2020).Performance is part of the work of a company and is closely related to the quality and strength of employees at work.Performance is also the result of the implementation of tasks or jobs submitted by the company to employees (Efendi, Rifa'i, et al., 2020).Performance can be divided into two types, including employee performance and organizational performance.Employee or individual performance is the result of evaluating employees according to quality and quantity in accordance with work operating standards that have been formulated by the company.Meanwhile organizational performance is a combination of employee performance (individual) and team performance (Darojat et al., 2019).In this case the results of the work include quality, quantity and timeliness.In terms of employee performance development, performance evaluation within the company is the main key to this development.
Remuneration or compensation is income in the form of money or goods given to an employee as a sign of reciprocity for the work of that employee (Zaeni et al., 2022).Compensation refers to various forms of wages (salaries) or rewards allocated by companies to workers on the basis of the work they do.Compensation is the link between employees and company owners.Furthermore, compensation is the result of a contract between the employee and the company in the form of the employee receiving payment based on the work performed (Wolor et al., 2019).Compensation is anything that is allocated by the company to workers, both financial and non-financial (Ayu et al., 2020).Compensation also includes everything that employees receive from the company, such as financial directly or indirectly and non-financially (Efendi, Rifa'i, et al., 2020).Compensation can also be interpreted when conditions where wages match the reality of compensation received by workers.Compensation can be separated into two types, namely internal and external (Hajiali et al., 2022).Financial compensation can be in the form of salaries, benefits, bonuses, and fees.Meanwhile, non-financial awards can be in the form of education, promotions, and awards based on employee work (Zaeni et al., 2022).So that it can be seen that this compensation is actually every reward, directly or indirectly, financially or not, fairly, acceptable and reasonable given to employees for their dedication to the company.The company itself believes that compensation can be said to be effective when the issue is mainly in personnel management to find and make qualified and competent employees stay in the company.The purpose of awarding employees is cooperation, job satisfaction, effective job acquisition, staff motivation and stability.So, it can also be seen that this is remuneration or compensation, in the form of a salary that can affect the level of employee performance.A good remuneration system of a company affects its strategic results (Butarbutar & Nawangsari, 2022).Employee performance is the willingness of employees to do work and complete it with the expected results according to the responsibilities given (Kilvin & Siagian, 2020).Salary can positively and significantly affect employee performance (Dwianto et al., 2019).Other studies have also found that compensation or remuneration has an impact on performance levels (Daly, 2019).
Discipline behavior is very influential for the progress of the company, because the main goal is to encourage every employee to be disciplined at work.Discipline behavior is also very useful for training employees to follow and comply with the rules, procedures and practices that have been stated in the company with the aim of doing the job well.Work discipline is the behavior, actions or behavior of employees who must comply with the rules, whether written or not, that apply in the company.Work discipline is also a very important function of personnel management in order to achieve company goals (Darojat et al., 2019).Work discipline is management to encourage workers (employees) to follow various existing rules.Thus, work discipline is a form of training employees or workers who aim to improve and broaden views about the attitudes and behavior of workers so that workers can work together with other workers to improve work performance (Lie et al., 2019).Work discipline can also be interpreted as the ability of workers to work regularly, thoroughly and in line following company rules and not breaking them (Budianto, 2020).Work discipline can also be described when workers come and go home according to the set time, everyone carries out their duties properly and correctly, and follows all the rules and social norms that apply in the company (Hajiali et al., 2022).Furthermore, work discipline is also the attitude, behavior and actions of employees who comply with company regulations, whether written or not (Iptian et al., 2020).Work discipline in the implementation of management must strengthen the company's guidelines.From the several opinions that have been described, it is clear that work discipline is the behavior of employees or individuals who follow the rules and work principles of the company where they work.
Work discipline is very important for employees (employees) and the company concerned, because the behavior of work discipline greatly affects employee efficiency.Good employee discipline behavior can illustrate how much the level of seriousness of workers towards the work assigned to them.One study stated that work discipline can have a significant effect on one's level of performance (Purba et al., 2019).This has also been supported by other research which states that this disciplinary action can partially affect or affect the level of employee performance (Darojat et al., 2019).According to other studies, both motivation and work discipline can affect employee performance (Sari & Masruroh, 2018b).This is also in line with other research, that work discipline has been able to affect employee performance (Kusumawati et al., 2022).
Work motivation is the result of internal and external forces that encourage employees to decide how to act and behave.Ideally, work motive aims to achieve company goals.Motivation both internal and external motivation can build employee morale to work together, work efficiently and integrate to achieve satisfaction (Butarbutar & Nawangsari, 2022).Work motivation can also be interpreted as employee strength, which can influence the direction, intensity and persistence of employee behavior.Motivated employees want to make a certain effort (intensity), in a certain time, and at a certain goal (Darojat et al., 2019).In addition, work motivation is a fundamental issue in organizations and can be manifested in employee skills and interpersonal relationships (Paais & Pattiruhu, 2020).Work motivation is a determinant of something, such as employee productivity, efficiency, and determination to do work.This work motivation is related to the decision-making steps by employees regarding the activities carried out.Work motivation is also an activity that focuses on personality characteristics, individual opinions and the influence of external factors on employee behavior to achieve the goals formulated by the company (Wolor et al., 2019).Work motivation is something that drives workers to act towards a goal (Sardjana et al., 2019).Work motivation is very important for employees so that the work can be carried out properly and must meet the company's operational standards.Work motivation is something that can determine the performance of an employee.The quantitative effect of work motivation on employee performance depends on how much work motivation there is (Pak et al., 2019).Work motivation is largely determined by the mental state that motivates employees to do their best (Ratnawati et al., 2020).According to other studies, work discipline, salary and motivation can affect employee performance levels (Kilvin & Siagian, 2020).This is also in line with other studies which say the motivation given will have a significant effect on the level of employee performance (Paais & Pattiruhu, 2020).

Figure 1. Conceptual Framework
Based on the findings and theories previously described, the researcher proposes three hypotheses: H1: Compensation has a positive and significant effect on employee performance.H2: Work discipline has a positive and significant effect on employee performance.H3: Work motivation has a positive and significant effect on employee performance.

Research design
This study uses a quantitative method using a survey model.The variables that the researchers used in this study were Compensation (C), Work Discipline (WD), Work Motivation (WM), and Employee Performance (EP).This research was conducted at Universitas Lambung Mangkurat.In this case, Universitas Lambung Mangkurat is a place for students to study, of course there are students who study while working.Analysis of research data using Structured Equation Modeling-Partial Least Square (SEM-PLS).SEM-PLS has advantages in analyzing, the advantage is that the data to be tested does not always have to be normally distributed.So, because of that the research conducted by the researchers did not test the normality of the data and the linearity of the data.
The respondents used in this study were undergraduate students at Universitas Lambung Mangkurat.With respondents S1 students who study while working.In this case the researcher used a quantitative descriptive through the distribution of questionnaires or questionnaires.The research respondents were 121 students using a proportional stratified random sampling technique using the Slovin formula (error = 1%).

Development of Instruments and Measurements
The instrument that researchers used in collecting research data was a questionnaire that was distributed via electronic-form.The questionnaire distributed was aimed at measuring the effect of  , work discipline, and work motivation on students who were studying while working by using.Participants' responses to the questionnaire on items used a continuous scale of 5 points, with 1 = strongly disagree to 5 = strongly agree.In this case, the researcher compiled a questionnaire based on theory (Efendi et al., 2019) .So that the development of the instruments that researchers used in this study can be seen in table 1

Outer model predictions
Table 2 shows the profile of the respondents involved in this study.Respondents involved in this study were undergraduate students at Universitas Lambung Mangkurat who were studying while working in the MSME sector.Respondents were dominated by women with a percentage of 64.50%.The majority of respondents came from the Teaching and Education Faculty, Universitas Lambung Mangkurat.In addition, the fields of business that students are engaged in are dominated by businesses in the culinary field.Table 3 shows the calculation of the outer model in this study.Overall the loading factor values ranged from .719 to .885(> .70),thus implying that this study met convergent validity.However, there was one item that did not meet the criteria (< .70),namely item WD02 .663.Items that do not meet these criteria are eliminated to obtain the appropriate structural model.Then, to achieve discriminant validity the AVE value must be greater than .50.Table 3 shows that the AVE values for all variables range from .629 to .68. this means that all variables have met the criteria of discriminant validity.In addition, to meet the composite reliability (CR) criteria it must be more than .70 (Hair et al., 2020).Table 3 shows that the CR values of all variables range from .898 to .927, which means that all variables meet the composite reliability criteria.Furthermore, to measure discriminant validity this study also uses HTMT with a ratio that must be less than .90.Table 4 shows that the heterotrait-monotrait (HTMT) values ranged from .622 to .949indicating that several variables met the criteria for discriminant validity, except for the WD variable with EP .941(>.90) and the WM variable with WD .949(> .90).

Structural estimation of the inner model
Preliminary calculations have shown that the model meets the validity and reliability tests.For further analysis, this study uses SEM-PLS to build structures with inner model estimates.It aims to determine the relationship between constructs.All data uses a subsample of 500 bootstrap through 121 cases.In addition, it can be seen from the calculations that in general the VIF values range from 1,595 to 4,773 which means that there is no collinearity problem in the research model.Based on table 5, it can be seen that the two hypotheses are accepted with a t-value (> 1.96) and a p-value for each relationship (<.05).And one hypothesis is rejected with t-value (<1.96) and p-value (>.05).
Table 5. Path Coefficients and result off hypothesis testing.Model fit R-square (R2) aims to find accurate predictions in research models.This study adopts suggestions from (Hair et al., 2020) with weak (.25), moderate (.50), and high (.75) categories.Based on the initial findings, it can be seen that the R2 for EP is .726,which means that the C, WD, and WM variables are in the moderate category of .719.Apart from that, this study also uses f2 to estimate the magnitude of the construct variable.This study adopts suggestions from (Hair et al., 2020) with criteria f2: .20 (small), .15(medium), and .35(large).The results show that the value of f2 C to EP is .003(small), WD to EP is .263(medium), and WM to EP is .137(small).
Table 5 and Figure 2 provide information about the estimated hypothesis in this study using a significance level of 5%.In general, this study shows that of the three hypotheses proposed, two hypotheses are accepted and one hypothesis is rejected.The hypothesis accepted in this study includes the effect of WD and WM on EP.Meanwhile, the hypothesis that was rejected was the effect of C on EP.While H2 and H3 are accepted, HI is rejected.

B. Discussion
In this study, it provides evidence that how compensation is obtained, work discipline is applied, work motivation has an effect on the contribution of the performance of student employees who study while working in the MSME sector.By using the three hypotheses that have been proposed, namely first, compensation affects employee performance.Second, work discipline affects employee performance.Third, work motivation affects employee performance.However, based on this analysis, it can be emphasized that in the three hypotheses proposed, only two hypotheses can be accepted, while the rest of the hypotheses are neither accepted nor rejected.
The first hypothesis was proposed with the aim of proving how much influence compensation has on employee performance (students as working employees).Based on this research, new findings prove that there is no positive and significant effect between compensation and employee performance.The existence of compensation obtained from the results of student performance as employees in the MSME sector cannot increase the performance of these employees.The absence of an increase in an employee's performance may be caused by factors that do not match the income earned with the contributions made and the compensation received is not proportional to the workload carried out.
Different from the first hypothesis, based on the results of this hypothesis test it indicates that work discipline has a positive and significant influence on employee performance (students as workers).Judging from the results of these findings, it is possible that it can have an effect due to the disciplinary character that has been ingrained in students.The disciplined character of a student is of course an important thing that needs to be considered in taking education even while working, having such a character can make it easier to manage time in carrying out activities.
In connection with the second hypothesis, the third hypothesis found that there is a positive and significant influence between work motivation and employee performance.Everyone certainly has the intended motivation to do something or activity.Thus, motivation becomes a factor that can grow the performance of an employee.A place of work that provides a high form of motivation certainly affects the performance level of the employee.This finding is in line with previous research which determined that there is a positive and significant influence between work motivation and employee performance (Ayu et al., 2020;Kuswati, 2020).In addition, there are findings that prove that work motivation has a significant effect on employee performance (Kilvin & Siagian, 2020), (Sardjana et al., 2019), (Chareonwongsak, 2017), (Budianto, 2020), (Meuthia, 2019), (Ghaffari et al., 2017), (Sari & Masruroh, 2018a), (Paais & Pattiruhu, 2020), (Wolor et al., 2019), (Ratnawati et al., 2020), (Efendi, Muhamad, et al., 2020).However, there are findings that contradict these findings, due to the lack of desire of students as employees to increase their potential (Adeoye, 2019), (Lestari & Pragiwani, 2020).

CONCLUSIONS
Based on the findings from the results of this study, it can be concluded that in the research hypothesis test, only two hypotheses are accepted, the rest of the hypotheses are rejected.Hypothetical 1 (rejected), indicates that compensation has no positive and significant effect on employee performance.Hypothesis 2 (accepted), indicates that work discipline behavior has a positive and significant effect on employee performance.Then hypothesis 3 (accepted), indicates that work motivation has a positive and significant effect on employee performance.The research findings show that compensation does not affect employee performance, meaning that the compensation received by employees does not have any impact on employee performance.The next finding is that the behavior of work discipline and work motivation can influence employee performance, meaning that the higher the disciplinary behavior and the presence of good work motivation, the better the performance of the employee.
The limitations of this study are that the respondents came from only one university, and were dominated by women.This caused the researcher to be unable to generalize the gender of the respondents.For this reason, further research is needed in the future and qualitative research so that it can be known in more detail regarding the findings.

Table 1 .
. Development of Research Instruments

Table 2 .
Final Respondent Background

Table 3 .
Result of measurement model (outer model)