THE EFFECT OF THE IMPLEMENTATION OF THE COMPENSATION SYSTEM ON EMPLOYEE WORK MOTIVATION AT PT. XYZ WHICH IS ENGAGED IN THE MANUFACTURING INDUSTRY IN THE TANGERANG REGENCY AREA

The manufacturing industry in Tangerang Regency faces significant challenges in maintaining and increasing labor productivity, where employee motivation is a crucial factor influenced by various aspects of wage and benefits policies. This study uses a quantitative method by distributing questionnaires to 100 employee participants. This study applied a saturated sampling technique, so that the entire population was used as a sample, and data analysis was carried out using multiple linear regression with the support of SPSS software. The results of the analysis showed that the compensation system had a positive impact and had a significant influence on work morale, with a determination effect (R²) of 0.684. This situation shows that 68.4% of the difference in work motivation is influenced by compensation factors. This study recommends that companies consider the compensation system as a strategic instrument in improving staff morale.