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Unlocking Employee Potential: The Effects of Work Environment, Leadership, Compensation, and Flexi-Time on Motivation

Author

Listed:
  • Anwar Anwar

    (Hasanuddin University)

  • Julius Jilbert

    (Hasanuddin University)

Abstract

This study investigates the effects of work environment, leadership, compensation, and flexi-time on employee motivation within the service sector in Makassar, Indonesia. Using a quantitative approach with Structural Equation Modeling (SEM), data from 121 employees were analyzed. Results indicate that all four variables significantly impact employee motivation. The work environment (path coefficient = 0.164, p = 0.004), transformational leadership (path coefficient = 0.163, p = 0.029), fair compensation (path coefficient = 0.286, p = 0.000), and flexi-time (path coefficient = 0.252, p = 0.000) all positively affect motivation. Fair compensation exerts the strongest influence, followed by flexi-time, work environment, and transformational leadership. These findings suggest organizations should prioritize enhancing these areas to cultivate a motivated workforce. Future research could include other industries and explore moderating variables affecting these relationships. The results underscore the importance of a holistic approach to employee motivation, emphasizing the need to address multiple factors simultaneously. By improving the work environment, implementing effective leadership, offering fair compensation, and providing flexible work arrangements, companies can create a more engaging workplace. This approach enhances employee satisfaction and can boost organizational performance in the service sector.

Suggested Citation

  • Anwar Anwar & Julius Jilbert, 2026. "Unlocking Employee Potential: The Effects of Work Environment, Leadership, Compensation, and Flexi-Time on Motivation," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_23
    DOI: 10.2991/978-94-6239-709-5_23
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