Indonesia’s MLM sector continues to grow due to its flexible business model and increasing use of digital platforms. However, the shift to online communication, real-time reporting, and digital sales systems has also created new challenges. Employees face information overload, fast-paced virtual coordination, and digital fatigue. These conditions make leadership quality and compensation clarity critical factors in sustaining performance.
The research focuses on PT Milagros Indonesia Megah, an MLM company marketing energy-boosting drinking water and technology-based skincare products. Using a qualitative case study approach, the researchers gathered insights from 40 informants, including network leaders, operational managers, administrative staff, and digital support employees. Data were collected through in-depth interviews, observations of online work activities, and analysis of internal company documents.
The findings reveal that effective digital leadership plays a central role in improving employee performance. Leaders who communicate clearly through digital platforms, filter essential information, use real-time performance data, and provide emotional support via private messages or virtual discussions help employees adapt more easily to technological changes. Employees reported feeling more guided, motivated, and confident in achieving their targets.
Compensation emerged as another key driver. PT Milagros Indonesia Megah applies a performance-based and transparent compensation system supported by a digital dashboard. Employees can monitor commissions, bonuses, and network progress in real time. This transparency strengthens trust, enhances perceptions of fairness, and increases job satisfaction. Although new employees sometimes need time to understand the compensation structure, overall the system reinforces motivation and loyalty.
Key findings from the study include:
- Digital leadership improves communication clarity and team responsiveness.
- Transparent, performance-based compensation strengthens motivation and job satisfaction.
- The synergy between digital leadership and compensation leads to higher productivity, faster coordination, and better work quality.
According to Rivaldi Ramadhan, effective leadership in the digital era goes beyond mastering technology. “Leaders must be able to communicate clearly, show digital empathy, and use performance data fairly to keep employees engaged,” he explained. Ima Amaliah emphasized that transparent compensation supported by technology helps build healthier and more professional working relationships.
The study has important implications for businesses, particularly MLM and direct selling companies undergoing digital transformation. It provides practical insights for managers and HR practitioners on how to design leadership practices and compensation systems that align with digital work environments. For policymakers and educators, the findings underline the importance of digital leadership skills and fair reward systems in sustaining workforce performance.
Author Profiles
- Rivaldi Ramadhan, S.M. – Universitas Islam Bandung
- Dr. Ima Amaliah, S.E., M.Si. – Universitas Islam Bandung
- Dr. Nunung Nurhayati, S.E., M.Si. – Universitas Islam Bandung
Research Source
Ramadhan, R., Amaliah, I., & Nurhayati, N. (2026). The Influence of Digital Leadership and Compensation on Employee Performance at Direct Selling Company. International Journal of Management Analytics, Vol. 4 No. 1. DOI: 10.59890/ijma.v4i1.285.
Link Journal: https://dmimultitechpublisher.my.id/index.php/ijma
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