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Analysis of this research is about analyzing the effect of compensation on work motivation to improve employee performance. Study conducted at Karanganyar District Office. Samples taken in the study were 50 respondents who worked in Karanganyar District Office. Analytical methods used are multiple linear regression analysis, istrumen test, and classical assumption test. Based on the results of the analysis found it can be explained that the direct compensation and motivation have a positive and significant impact on employee performance while indirectly compensation is able to mediate a significant influence between compensation on employee performance.
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