The Influence of Work Environment on Employee Performance with Motivation as a Mediating Variable at Bank Tabungan Negara, Bandar Lampung Branch Office

Abstract

Aims: This study aims to analyze the influence of the work environment on employee performance with work motivation as a mediating variable at Bank Tabungan Negara (BTN), Bandar Lampung Branch Office. Specifically, the study investigates the direct effect of the work environment on both employee motivation and performance, the effect of motivation on performance, and the mediating role of motivation in the relationship between the work environment and employee performance. Study Design: Quantitative explanatory research using a structural equation modeling (SEM) approach based on Partial Least Squares (PLS). Place and Duration of Study: The research was conducted at Bank Tabungan Negara (BTN), Bandar Lampung Branch Office, during the period of January to March 2025. Methodology: The study involved a population of 160 employees. Data were collected through a structured questionnaire distributed online via Google Forms. Analysis was performed using SmartPLS version 3.2.9 to test the proposed model and hypotheses. Results: The findings show that the work environment has a positive and significant effect on both employee motivation and performance. Motivation also has a significant positive impact on performance. However, motivation does not significantly mediate the relationship between the work environment and performance. This indicates that the influence of the work environment on performance tends to be direct rather than mediated. Conclusion: A supportive work environment plays a crucial role in directly enhancing employee performance at Bank BTN Bandar Lampung. Although motivation contributes positively, it is not a significant mediator in this context. The study contributes to the understanding of performance drivers in the Indonesian banking sector and highlights the need for institutions to focus on improving both physical and non-physical aspects of the workplace. These findings provide actionable insights for HR policies aimed at boosting productivity.