This study aims to examine and analyze the effect of compensation and leadership on employee performance with work discipline as an intervening variable for employees of PT. Hyup Sung Indonesia. The population in this study were all production employees of PT. Hyup Sung Indonesia. The sample used in this study were 110 employees using incidental sampling techniques. The analysis used was the Model Fit Test (F), t-test, Sobel Test, and Determination Coefficient Test (R2).
Based on the results of the fit test model (F) model 1 and model 2 have met the model fit test. The results of the t-test research concluded; (a) compensation has a significant effect on work discipline, (b) leadership has a significant effect on work discipline, (c) compensation has a significant effect on employee performance, (d) leadership has a significant effect on employee performance, (e) job discipline has a significant effect on employee performance. The Sobel test results concluded that compensation has a significant effect on employee performance through work discipline and leadership has a significant effect on employee performance through work discipline. The coefficient of determination (R2) model 1 showed the magnitude of compensation and leadership’s influence on work discipline by 48.2%. The coefficient of determination (R2) model 2 test showed that the effect of compensation, leadership, and work discipline on employee performance is 49.4%.