International Journal of Economy. Education, and Entrepreneurship p-ISSN: 2798-0138 | e-ISSN: 2798-012X Vol. No. December 2025 https://doi. org/10. 53067/ije3. THE EFFECT OF REWARD SYSTEM. WORK MOTIVATION AND WORK FACILITIES ON EMPLOYEE PERFORMANCE IN LUBUK BAJA DISTRICT Andi Muhammad Suharto1. Henry Herman2*. Sudianto3 1,2,3 Ibnu Sina University. Indonesia Correspondent Email: hendri. herman@uis. Abstract This study aims to analyse the influence of the reward system, work motivation, and work facilities on employee performance in the Lubuk Baja District. Batam City. This study's background is grounded in the deteriorating quality of public services attributed to insufficient work motivation, an ineffective reward system, and inadequate work facilities. The research employed a quantitative methodology utilising a survey technique. The sample consisted of 35 Lubuk Baja District employees, and data analysis was conducted through multiple linear regression using SPSS version 25. The results of the study indicate that the reward system partially has a positive and significant effect on employee performance . =0. beta=0. Work motivation also has a considerable positive impact . regression coefficient 0. , as do work facilities . regression coefficient 0. Simultaneously, the three independent variables have a positive and significant effect on employee performance (F-count 42. 000 < 0. The coefficient of determination (RA) of 0. 787 indicates that these three variables explain 78. 7% of the variation in employee performance, with the remaining 21. 3% explained by factors outside this study. These findings confirm that improving employee performance requires a holistic approach that combines an effective reward system, high work motivation, and adequate work facilities. Keywords: Reward System. Work Motivation. Work Facilities. Employee Performance INTRODUCTION Management is a crucial aspect of organisational governance in both the private and public Management aims to maximise organisational resources to achieve goals effectively and efficiently (Robbins & Coulter, 2. In the context of government, human resource (HR) management is key to successfully achieving development targets and providing quality public Employee performance is a fundamental indicator reflecting management effectiveness in a government organisation. Data from the Central Statistics Agency (BPS, 2. shows that Indonesia's Regional Government Effectiveness Index has reached only 72. 3%, indicating that effectiveness remains in the moderate to suboptimal range. Since employees' performance directly influences the quality of public services, this research primarily examines that performance. Field observations indicate several problems affecting employee performance, including those in the Lubuk Baja District. According to the Batam City Inspectorate . , 13 public complaints were received regarding the slowness of administrative services across several districts. The public's level of satisfaction with the services provided has decreased as a result of this situation. In the 2023 public satisfaction survey, it was shown that the public satisfaction index in the Lubuk Baja District reached only 78. 5 points, still below the minimum target of 85 points set by the Batam City Government. Furthermore, the employee absenteeism rate, which went 8Ae10% per month, exceeds the ASN tolerance standard of 5%, indicating issues of discipline and work motivation that require attention (BKPSDM Batam, 2. Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District Several internal organisational factors are suspected of influencing employee performance, including the reward system, work motivation, and work facilities. A consistent and fair reward system can encourage employees to improve their performance and loyalty (Gunawan, 2. However, an internal survey in Lubuk Baja District . showed that only 42% of employees were satisfied with the implemented reward system, underscoring the need to evaluate both financial and non-financial reward mechanisms. Work motivation is a crucial psychological factor influencing employee productivity. Motivated employees tend to complete work on time and contribute optimally to achieving organisational targets (Sari, 2. However, interviews with employees in the Lubuk Baja District revealed that the high workload is not always accompanied by incentives or rewards, resulting in a motivation level of only 51%, which has implications for declining work quality. Furthermore, work facilities are also a significant contributing factor. The availability of work facilities such as computers, desks, and a stable internet connection significantly impacts employee effectiveness and efficiency (Putra et al. A 2023 facility audit of Lubuk Baja District revealed a computer availability ratio of only 0. units per employee, congested workspaces, and frequent internet connection issues, resulting in suboptimal employee productivity. Most studies examine one or two variables influencing employee performance, thus not providing a comprehensive picture of the simultaneous influence of reward systems, work motivation, and work facilities. Furthermore, research at the sub-district level remains minimal. This research gap underscores the need for research that integrates these three factors to make empirical contributions to the development of human resource management theory in the public sector and to offer practical recommendations for improving public services in the Lubuk Baja District. This study aims to analyse the influence of reward systems, work motivation, and work facilities on employee performance in the Lubuk Baja District. This study is expected to produce more effective human resource management strategies, improve the quality of public services, and close the gap between public expectations and employee performance in the field. Research in the Lubuk Baja District shows a clear gap between public expectations for public services and employees' field performance. Based on initial observations and public complaint reports from 2023Ae2024, administrative services, including issuing certificates, processing permits, and providing information, are frequently delayed. High workloads, low motivation, and limited work facilities are the main contributing factors. Furthermore, some employees do not fully understand or follow existing standard operating procedures, resulting in inconsistent task completion. This phenomenon is further reinforced by the results of an internal survey in Lubuk Baja District . , which showed that most employees believe the reward system does not sufficiently motivate them to perform optimally. International Journal of Economy. Education and Entrepreneuship. Vol. No. December 2025, pp. https://doi. org/10. 53067/ije3. Problems arising from this phenomenon include low employee motivation, inefficient use of work facilities, and inconsistent implementation of the reward system. These conditions have resulted in decreased productivity, reduced quality of public services, and reduced public satisfaction. Furthermore, fluctuating employee attendance rates exceeding ASN standards pose additional challenges in managing employee performance. These issues highlight the need for integrated managerial interventions, which do not focus solely on a single factor but rather integrate the reward system, work motivation, and work facilities to improve the effectiveness and efficiency of public services in Lubuk Baja District (Sari, 2021. Gunawan, 2022. Putra et al. , 2. Numerous studies have investigated the impact of internal factors on employee performance within the public sector, thereby reinforcing this research. Sari . found that work motivation substantially affects employee performance, particularly in the pursuit of organisational objectives. Gunawan . demonstrates that a consistent, transparent reward system can enhance civil servants' Putra et al. highlight the significance of sufficient work facilities in improving employee productivity. Furthermore. Rahman and Hidayat . found that the integrated application of rewards, motivation, and work facilities concurrently positively influences employee performance in local government institutions. Similarly. Nurcahyo's . research affirms that integrated human resource management effectively bridges the gap between public expectations and employee performance, thereby enhancing the quality of public services. These findings offer a robust empirical foundation for investigating the concurrent effects of reward systems, work motivation, and work facilities in Lubuk Baja District. Based on literature reviews and field observations, a clear research gap exists regarding the influence of internal factors on employee performance at the sub-district level. Most previous studies have examined only one or two variables, such as work motivation or reward systems, thus failing to provide a comprehensive picture of the simultaneous, integrated influence of reward systems, work motivation, and work facilities (Sari, 2021. Gunawan, 2022. Putra et al. , 2. Furthermore, previous research has been conducted primarily at the city or central government level, while studies at the subdistrict level remain very limited. This situation demonstrates the need for research that focuses on the sub-district as the unit of analysis, particularly in the Lubuk Baja Sub-district, which has complex public service dynamics and continues to face various obstacles to employee performance. This research introduces a novel simultaneous analysis of the influence of the reward system, work motivation, and work facilities on employee performance in Lubuk Baja District. This approach differs from previous research by integrating all three factors simultaneously within a single conceptual framework, thereby providing a more complete picture of the determinants of employee performance at the sub-district level. Furthermore, this research is expected to offer practical contributions in the form of strategic recommendations for Lubuk Baja District leaders to design more Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District effective HR management policies, increase employee productivity, and close the gap between community expectations and actual performance. LITERATURE REVIEW Employee Performance Employee performance refers to the degree to which an individual accomplishes their work in accordance with the responsibilities delegated by the organisation. According to Anwar . and Priyanto . , performance should not be limited to quantitative output alone. it should also include quality, quantity, timeliness, and adherence to procedures. According to Sembiring et al. performance is influenced by both internal and external factors, including reward systems and work Internal factors include motivation and competence, while external factors include work facilities and reward systems. As a result, employee performance serves as an indicator of the organisation's effectiveness and the success in achieving established goals. Reward System A reward system is an organisational mechanism for providing financial and non-financial rewards for employee contributions, aimed at increasing motivation, satisfaction, and performance (Rahman & Putri, 2021. Fitria & Hidayat, 2. Kurniawan & Sari . emphasise the importance of managing rewards synergistically between financial and non-financial aspects, while Prasetyo et al. add that rewards also serve as a means of organisational communication to foster emotional attachment and employee loyalty. An effective reward system encourages employees to contribute maximally to achieving organisational goals. Work motivation Employee work motivation is an internal and external drive that influences enthusiasm, sincerity, and dedication in carrying out tasks (Rahmawati, 2021. Rizki & Wahyuni, 2. Highly motivated employees tend to be disciplined, results-oriented, and able to cope with work pressure. Arifin . adds that work motivation is closely related to commitment and job satisfaction, thus influencing productivity and loyalty. Work motivation is a key factor in ensuring employees can deliver optimal performance, both individually and collectively, within an organisation. Framework of Thinking The conceptual framework of this research focuses on the influence of the reward system, work motivation, and work facilities on employee performance in the Lubuk Baja District. A fair and transparent reward system is expected to increase employee loyalty and work enthusiasm. Work motivation, both intrinsic and extrinsic, plays a role in determining employee discipline, consistency. International Journal of Economy. Education and Entrepreneuship. Vol. No. December 2025, pp. https://doi. org/10. 53067/ije3. and productivity. Adequate work facilities, including physical and non-physical facilities, support smooth task execution and work effectiveness. This research assumes that these three factors are interconnected, so that improving employee performance does not depend solely on a single factor, but on the integration of all these supporting variables. Figure 1 Thinking Framework Research Hypothesis Based on the framework of thought that has been prepared, the research hypothesis can be formulated as follows: HCA: It is suspected that there is an influence of the Reward System on Employee Performance. HCC: It is suspected that there is an influence of work motivation on employee performance. HCE: It is suspected that there is an influence of work facilities on employee performance. HCE: It is suspected that there is a simultaneous influence of the Reward System. Work Motivation, and Work Facilities on Employee Performance. METHOD Research methodology This research method was designed to analyse the influence of the reward system, work motivation, and work facilities on employee performance in the Lubuk Baja District. This study combined quantitative and qualitative data to provide a comprehensive overview of the variables Data were collected through questionnaires, observations, interviews, and documentation to ensure the validity of the information. The analysis was conducted using descriptive statistics and multiple linear regression, with validity and reliability tests and classical assumptions to ensure the accuracy of the research results. Location and Time of Research The research was conducted at the Lubuk Baja District Office in Batam City, a representative sub-district-level public service location. This office was chosen because all employees there perform administrative duties and provide direct services to the public, making it relevant to the research's Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District focus on employee performance. The research was scheduled to last three months, from January to March 2025, covering data collection, instrument validation, and data analysis. Population and Sample Population: The study population comprised all 35 employees of the Lubuk Baja District Office (Sugiyono, 2019. Febrianti Berliana, 2. This population was selected because each employee plays an active role in administrative services and public administration. The research sample used a non-probability sampling technique, namely saturated sampling, in which all members of the population were sampled. Thus, the number of samples matched the population, namely 35 employees (Pangestu Subagiyo & Djarwanto, 2. This approach ensures that the data obtained is representative and valid for analysis. Data Types and Sources Data Types: The data used included both quantitative and qualitative data. Quantitative data were collected via a Likert-scale questionnaire to assess employees' perceptions of the reward system, motivation, work facilities, and performance. Qualitative data were collected through interviews and observations to understand field conditions (Creswell, 2. Data sources include: Primary IeDirect data from employees through questionnaires, observations, and interviews. Secondary IeSupporting data from documents, evaluation reports, and archives related to employee service and performance (Sugiyono, 2. Method of collecting data Data collection was conducted through questionnaires, observations, interviews, literature review, and documentation (Sugiyono, 2020. Sujarweni, 2. The questionnaire consisted of closedended questions distributed via Google Forms and used a Likert scale to assess respondents' responses (Narbuko & Achmadi, 2. Observations were conducted to determine work facilities and employee behaviour, while interviews were used to explore motivations and perceptions of the reward system. The literature review strengthened the theoretical framework and the analysis's foundation. Research Instrument Testing Validity Test. The analysis was conducted using item-total correlations with a threshold of r Ou 30 and confirmatory factor analysis (CFA) with loadingsOu 0. 50 (Hair et al. , 2021. Sekaran & Bougie. The reliability test used Cronbach's Alpha, with a criterion of Ou 0. 70 for reliable and Ou 0. 80 for very reliable (Sekaran & Bougie, 2020. Hair et al. , 2. International Journal of Economy. Education and Entrepreneuship. Vol. No. December 2025, pp. https://doi. org/10. 53067/ije3. Classical Assumption Test Normality was assessed using Normal Probability Plots and histograms (Hair et al. , 2021. Sekaran & Bougie, 2. Multicollinearity tests used VIF < 10 and Tolerance > 0. 1 (Ghozali, 2. Heteroscedasticity was tested using the Glejser method. p-values>0. 05 indicated no heteroscedasticity (Ghozali, 2. Data analysis Data were analysed using descriptive statistics and multiple linear regression to measure the effect of the reward system (X. , work motivation (X. , and work facilities (X. on employee performance (Y). A t-test was used for partial effects, while an F-test was used for simultaneous effects (Hair et al. , 2021. Sekaran & Bougie, 2. The coefficient of determination (RA) was used to assess the independent variables' contribution to the dependent variable. The multiple regression equation is: Y = a b1X1 b2X2 b3X3 e Where: Y = employee performance. X1 = reward system. X2 = work motivation. X3 = work facilities, a = constant, b1-b3 = regression coefficient, and e = error. RESULTS AND DISCUSSION Research result This study aims to determine the effect of the Reward System. Work Motivation, and Work Facilities on Employee Performance. The analysis was conducted using descriptive statistics, validity and reliability tests, classical assumptions, multiple linear regression, and t- and F-tests. The results of the study are presented in stages through sub-chapters containing an introduction, tables, and explanations of the analysis results from 35 respondents. Descriptive Statistics Descriptive statistics are used to provide an overview of the condition of the research variables. This analysis displays the minimum, maximum, average, and standard deviation for each variable, allowing a clear understanding of the data's characteristics and distribution across all respondents. These results are significant as a basis for assessing trends in the Reward System. Work Motivation. Work Facilities, and Employee Performance. Table 1: Descriptive Statistics Results Variables Reward System Work motivation Minimum Maximum Mean Standard Deviation Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District Work Facilities Employee Performance Source: Processed Data from SPSS Statistics 20, 2025 The table shows that all variables have average scores above 20, indicating that respondents rated the research variables relatively highly. The slight standard deviation suggests that respondents' responses are consistent. Work Facilities received the highest average score, indicating that the majority of employees considered the available facilities adequate, while Employee Performance also showed a generally positive perception. Validity Test Validity testing is conducted to determine whether the questionnaire instrument can measure the intended variables. An instrument is considered valid if the calculated r is greater than the table r. This test is essential to ensure that each question item provides accurate data and can be used as a basis for analysing the influence of the Reward System. Work Motivation, and Work Facilities on Employee Performance. Table 2 Results of Variable Validity Test Variables Indicator r_hitung Reward System X1. 1AeX1. 675Ae0. Work motivation X2. 1AeX2. 658Ae0. Work Facilities X3. 1AeX3. 669Ae0. Employee Performance Y1AeY5 701Ae0. Source: Processed Data from SPSS Statistics 20, 2025 r_table Information Valid Valid Valid Valid All indicators for each variable had calculated r-values greater than the table r-value. thus, all questionnaire statements were declared valid. It indicates that the instrument can accurately measure the variables and provides a reliable basis for analysing the relationships among the Reward System. Work Motivation. Work Facilities, and Employee Performance. Reliability Test Reliability testing assesses the consistency of research instruments. A Cronbach's Alpha value 6 indicates a reliable questionnaire. This test ensures that research results are consistent and dependable when used repeatedly under similar conditions, ensuring that the data obtained from respondents reflects the actual situation. Table 3 Reliability Test Results Variables Cronbach's Alpha N of Items Reward System Work motivation Work Facilities Employee Performance Source: Processed Data from SPSS Statistics 20, 2025 Information Reliable Reliable Reliable Reliable International Journal of Economy. Education and Entrepreneuship. Vol. No. December 2025, pp. https://doi. org/10. 53067/ije3. Cronbach's Alpha values for all variables were above 0. 6, indicating the research instrument was stable and consistent. It ensures that the measurements of the Reward System. Work Motivation. Work Facilities, and Employee Performance are reliable and provide results that can be analysed statistically with a high degree of reliability. Classical Assumption Test The classical assumption test was conducted to ensure the regression model met the requirements for normality, multicollinearity, and heteroscedasticity. These assumptions are essential for valid, correctly interpreted multiple linear regression results, enabling accurate analysis of the influence of independent variables on the dependent variable. Table 4 Normality Test Unstandardised Residual Asymp. Sig. -taile. Source: Processed Data from SPSS Statistics 20, 2025 An Asymp. Sig. A value of 0. 200 > 0. 05 indicates that the residual data are approximately normally distributed. Thus, the regression model meets the normality assumption and is ready for use in multiple linear regression, allowing the results on the influence of independent variables on employee performance to be interpreted validly. Table 5 Multicollinearity Test Variables Tolerance Reward System Work motivation Work Facilities Source: Processed Data from SPSS Statistics 20, 2025 VIF 1,147 1,227 1,153 A tolerance value > 0. 1 and a VIF < 10 indicate that there is no multicollinearity among the independent variables. It means that the three independent variables can be analysed simultaneously in a multiple linear regression model without excessive cross-influence. Multiple Linear Regression Introduction: Multiple linear regression analysis is used to determine the simultaneous and partial effects of the Reward System. Work Motivation, and Work Facilities on Employee Performance. The regression results show the relationship between the independent and dependent variables, along with the coefficients, to assess each variable's contribution to changes in Employee Performance. Table 6 Multiple Linear Regression Results Variables Constant Reward System Work motivation 6,214 Beta 4,094 2,713 2,759 Sig. 0,000 0,000 0,000 Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District Work Facilities Source: Processed Data from SPSS Statistics 20, 2025 2,842 0,000 The regression equation Y = 6. 312XCA 0. 298XCC 0. 341XCE shows that all three independent variables have a positive effect. Work Facilities have the most dominant influence, followed by the Reward System and Work Motivation. It indicates that increasing each independent variable will significantly improve Employee Performance. Discussion The discussion of this research focuses on testing four hypotheses regarding the influence of the Reward System. Work Motivation, and Work Facilities on Employee Performance in Lubuk Baja District. The analysis uses partial t-tests and simultaneous F-tests to provide empirical evidence of the relationship between the variables. Each subsection compares the research findings with other academic studies to strengthen the interpretation of the results. The Influence of Reward Systems on Employee Performance The analysis results show that the Reward System has a positive and significant effect on Employee Performance, with a significance value of 0. 010 < 0. 05 and a positive regression coefficient of 0. It means that the better the reward system implemented, in both financial and non-financial forms, the higher the employee performance. This finding is consistent with Putri's . research, which shows that an effective reward system can encourage employee productivity and work commitment by making them feel appreciated for their contributions. Conceptually, rewards reinforce positive work behaviour by providing feedback on employee achievements. Another study by Akbar et al. also reported that rewards and the work environment have a significant influence on performance, emphasising the importance of rewards as a work context factor that motivates employees to achieve better results (UNG EJourna. In general, these findings support reinforcement theory, which states that rewards reinforce desired work behaviours and directly improve organisational performance. The Influence of Work Motivation on Employee Performance The results of the second hypothesis test indicate that work motivation has a positive and significant effect on employee performance, with a significance level of 0. 004 < 0. 05 and a positive regression coefficient of 0. It means that the higher an individual's work motivation, the higher their performance. This finding supports Fadilah's . conclusion that work motivation plays a crucial role in improving work performance by fostering a sense of responsibility and an orientation toward achieving optimal work results. Other research has shown a similar relationship between work motivation and performance in the context of public services. For example, a study at the Parung Panjang District Office found that work motivation had a significant influence on employee performance, explaining that motivation creates an internal drive to complete tasks well . It reinforces the view International Journal of Economy. Education and Entrepreneuship. Vol. No. December 2025, pp. https://doi. org/10. 53067/ije3. that work motivation is a key psychological factor influencing work quality and productivity, consistent with the theory of needs and motivation in human resource management. Motivated employees tend to be highly dedicated, disciplined, and committed to their tasks and organisational The Influence of Work Facilities on Employee Performance The third hypothesis test shows that work facilities have a positive and significant effect on employee performance, with a significance value of 0. 016 < 0. 05 and a positive regression coefficient of 0. It indicates that the availability of adequate work facilities, such as equipment, workspace, supporting technology, and work environment conditions, can boost productivity and effectiveness in task execution. This finding aligns with Rahmawati's . research, which states that work facilities have a significant impact on improving employee performance, as a supportive environment minimises operational obstacles. Other empirical evidence from PDAM Tirta Dhaha's research in Kediri shows that work facilities significantly influence employee performance and, together with different variables, also contribute to work results (Light of the Nation's Science Institut. These studies confirm that, in addition to psychological factors, the physical and technical aspects of the workplace are crucial to supporting the work process. Good work facilities create a conducive work environment, reduce work-related stress, and increase job satisfaction, ultimately improving employee performance. The Simultaneous Influence of Reward Systems. Work Motivation, and Work Facilities on Employee Performance The results of the F test show that the Reward System. Work Motivation, and Work Facilities simultaneously have a positive and significant effect on Employee Performance, with an F count of 753 > F table 2. 90 and a significance of 0. 000 < 0. It indicates that the integration of the three variables has a substantial contribution in explaining variations in employee performance. This finding aligns with Sari's . research, which shows that motivation, reward systems, and work facilities collectively have a significant impact on employee productivity by creating a comprehensive work environment that encompasses psychological aspects, rewards, and support facilities. Other research in the government sector also shows that work motivation, work facilities, and organisational commitment simultaneously have a positive impact on employee performance (Light of the Nation's Science Institut. Thus, these results confirm that improving performance cannot rely solely on a single factor but requires fair rewards, high motivation, and adequate work facilities. These three variables complement each other to create a productive work environment and increase organisational effectiveness. The simultaneous contribution of these three variables accounts for a significant portion of the variation in employee performance in the study. It reinforces the importance of a holistic approach to improving human resource performance in the public sector. Andi Muhammad Suharto. Henry Herman. Sudianto The Effect of Reward System. Work Motivation and Work Facilities on Employee Performance in Lubuk Baja District CONCLUSION Based on the data analysis and discussion in the previous chapter, this study concludes that the Reward System. Work Motivation, and Work Facilities have a positive and significant impact on Employee Performance. The results of partial and simultaneous tests indicate that these three variables not only affect individuals but, when considered together, also collectively improve employee performance in the Lubuk Baja District. First, the Reward System (XCA) has a significant positive effect on employee performance, with a significance value of 0. 010 < 0. 05 and a regression coefficient of 0. It indicates that improving the quality and fairness of both financial and non-financial rewards encourages employee productivity, loyalty, and commitment to the organisation. Second. Work Motivation (XCC) also has a significant positive effect . = 0. 004 < 0. with a regression coefficient of 0. Motivated employees tend to be more enthusiastic about completing tasks, are results-oriented, and are highly dedicated to achieving organisational goals. Third. Work Facilities (XCE) has a significant positive effect with a significance value of 0. 016 < 0. 05 and a regression coefficient of 0. Providing complete and comfortable work facilities supports employee effectiveness, efficiency, and productivity. Simultaneously, these three variables contribute significantly to employee performance, with an Fcount value of 42. 753 and a significance value of 0. 000 < 0. These results confirm that employee performance is influenced by a combination of factors, including rewards, motivation, and work Overall, this study emphasises the importance of a holistic approach to human resource management to create a productive work environment, boost morale, and achieve optimal, sustainable employee performance. REFERENCES