The Effect of Incentives and Leadership on Employees' Motivation and Performance at the Indonesian Footwear Industry Development Centre

This research aims to study the effect of incentives and leadership on employees' motivation and performance at the Indonesian footwear industry development centre. The sampling was done using saturation sampling, in which all existing populations were sampled, with 35 employees as the population. Path analysis and hypothesis testing was done using the t test. The results indicate that incentives, leadership, and motivation have a positive and significant effect on employees’ performance; incentives and leadership have a positive and significant effect on employees’ motivation; and through motivation, leadership and incentives have a positive effect on employees’ performance. Motivation plays a major role in employees because the higher the incentives given to employees and leaders, the more their performance will also increase. This study showed that each variable has a link, the independent variable (incentive and leadership) and the dependent variable that is performance and motivation influence each other. The analysis approach used is path analysis, confirmed by path regression.