This study was conducted to analyze the effect of compensation, work environment on employee performance with motivational intervention at PT Pegadaian (Persero). The data used in this study is questionnaire data taken from 160 respondents using purposive sampling. Meanwhile, the data analysis was carried out quantitatively and statistically using Structural Equation Modeling (SEM) assisted by LISREL version 9.2 software. The results showed that compensation had a significant effect on employee motivation, while motivation and work environment did not have a significant effect on employee performance. In the results of research on direct and indirect relationships, both compensation and work environment have a significant indirect effect on employee performance. The results of this study can be used as a reference both academically and practically in implementation management by PT Pegadaian (Persero).

Keywords : Compensation, Work Environment, Motivation, Employee Performance.