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This study examines the relation of compensation, motivation, and employee performance for Micro, Small, and Medium Businesses. The Systematic Literature Review is based on the analysis of several relevant studies published from 2019 to 2025 using the PRISMA methodology. The analysis indicates that fairly high compensation and competitive are effective means of enhancing job satisfaction and motivation. Furthermore, intrinsic motivators such as recognition, career advancement, and supportive leadership have been shown to play a large role in employee engagement. MSMEs must integrate both extrinsic (compensation-based) and intrinsic (motivation-based) strategies to maintain productivity and competitiveness. It provides valuable insights to policymakers and MSME owners for developing reward systems aligned with the success of their organizations.

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Analyzing the Role of Compensation and Motivation in Enhancing MSME Employee Performance

  • 会议论文

  • 发表日期：

    2026年

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  • Muslimin Zainal Abidin,
  • Abdul Nashar,
  • Muhammad Zabir Zainuddin,
  • La Ode Abdul Manan

摘要

This study examines the relation of compensation, motivation, and employee performance for Micro, Small, and Medium Businesses. The Systematic Literature Review is based on the analysis of several relevant studies published from 2019 to 2025 using the PRISMA methodology. The analysis indicates that fairly high compensation and competitive are effective means of enhancing job satisfaction and motivation. Furthermore, intrinsic motivators such as recognition, career advancement, and supportive leadership have been shown to play a large role in employee engagement. MSMEs must integrate both extrinsic (compensation-based) and intrinsic (motivation-based) strategies to maintain productivity and competitiveness. It provides valuable insights to policymakers and MSME owners for developing reward systems aligned with the success of their organizations.