Authors: Tarmizi, Asmawati and Zulkifli

Abstract: Activities targeted by the management of Baitul Mal Aceh have not yet reached the 100% target, including services at the counter, zakat pickup, incentives assistance for new Zakat Management Unit candidates, announcements of zakat receipts, infaq, and religious assets so this is of course related to employee performance and motivation. The aim of this research is to analyze the role of motivation in mediating the influence of compensation and competency on the performance of Baitul Mal Aceh employees. The total population is 120 employees. The sampling technique in this research used a total sampling technique, namely the entire population was sampled, namely 120 respondents. Data analysis in the research used partial least squares-structural equation modeling (PLS-SEM) with the help of the SmartPLS program. The research results show that compensation has a positive and significant direct influence on employee performance and motivation, competency does not have a direct influence on employee performance, but competency has a very significant influence on motivation. Our indirect analysis found that motivation partially mediates the influence of compensation on employee performance and fully mediates the influence of competence on the performance of Baitul Mal Aceh employees. These results have the implication that top management can build and maintain stable work motivation through providing compensation and increasing competency consistently, which will ultimately have a positive influence on employee performance.

Keywords:  Motivation, Compensation, Competency, and Employee Performance