Compensation and Work Motivation in Electronics Manufacturing in the Sarawak Context

Abstract

This study examines the association between compensation and work motivation among 360 lower- and middle-level employees in Sarawak’s electronics manufacturing sector. Compensation was measured using 10 items and work motivation using 12 items, with composite scores calculated as item means. Data quality was assessed through score reconstruction, descriptive statistics, response distributions, and internal consistency estimates. Pearson’s and Spearman’s correlations were used to examine the association and assess the consistency of the findings. Both scales showed high internal consistency (Cronbach’s α = .890 for compensation and .895 for work motivation). Compensation was positively associated with work motivation, r (358) = .226, p < .001, 95% CI [.126, .322]. Spearman’s correlation yielded a similar result, rₛ = .221, p < .001. The association was small, with the two constructs sharing approximately 5.1% of their variance. This pattern is consistent with equity and expectancy perspectives, under which rewards may relate to motivation when employees perceive them as fair, valuable, and linked to performance.