Implementation of Contract Employee Status to Improve Employee Performance

Abstract

This study investigates the impact of motivation on employee performance and examines whether 
employee status moderates this relationship. The research employs a quantitative approach, using surveys and 
statistical analysis to collect and analyze data from 144 employees. The findings indicate that motivation has a 
significant and positive effect on employee performance. However, the study also reveals that employee status does 
not moderate the relationship between motivation and performance. In other words, the level of motivation 
experienced by employees, regardless of their employment status (contract or permanent), significantly influences 
their performance. The results suggest that organizations should focus on enhancing employee motivation as a primary 
strategy to improve overall performance without being influenced by the distinction between contract and permanent 
employees. Management can change employee status from permanent to contract employee to increase agility and 
avoid potential cost loss.