Effect of Compensation and Work Environment on Employee Performance with Employee Job Satisfaction as an Intervening Variable

Abstract

An employee who has a high performance and better able to support the achievement of the goals and objectives set by the company. Employees can work well if you have a high performance that can produce good work anyway. With the high- performance that employees, is expected to achieve organizational goals.
 This study examines the effect of compensation and work environment on employee performance with job satisfaction to be intervening variable. Data on compensation, work environment, job satisfaction, and employee performance obtained through observation, record keeping and questioner with respondents. The data obtained are then analyzed using Partial Least Squares (PLS).
 Statistical tests results showed (1) the compensation proved significant positive effect on job satisfaction the path coefficient of 0.434 and T-Stats for 4.880, (2) work environment proved to be a significant positive effect on job satisfaction the path coefficient of 0.434 and T-Stats for 4.074, (3) job satisfaction proved to be a significant positive effect on employee performance the path coefficient of 0.264 and T-Stats for 2.458, (4) compensation proved positive and significant effect employee performance the path coefficient of 0.242 and T-Stats for 2.912, (5) work environment proved positive and significant effect employee performance the path coefficient of 0.378 and T-Stats for 3.343. Based on test results obtained statistical results of all variables positive and signicant impact.

Compensation and Work Discipline on Employee Performance With Job Satisfaction as Intervening

“…The results of compensation research on employee performance also support the results of previous studies conducted by Sopiah (2013) Suryadharma et al (2016), Juliarti et al (2018) the conclusion of his research results shows that compensation has a positive and significant effect on employee performance. However, it is different from the results of the study of Shahab & Nisa (2014) and Rachmawati & Mauludin (2018) the research results conclude that incentives do not significantly influence performance.…”

“…The results of the job satisfaction research on employee performance also support the results of previous studies conducted by : Yusuf et al (2012), Sopiah (2013), Gayathiri et al (2013), Mardiono & Supriyatin (2014), Shahab & Nisa (2014), Umar (2014), Arifin (2015), Suryadharma et al (2016), and Juliarti et al (2018) in the conclusion of the results of his study showed that job satisfaction has a positive and significant effect on employee performance. PT.…”

“…al. (2012), Indrawan & Dewi (2014), Kurniawan (2016), Retnoningsih et al (2016), and Juliarti et al (2018) in the conclusion of the results of his study showed that compensation has a positive and significant effect on job satisfaction. This means that if employees get compensation that can reflect fairness and worth, employees can feel satisfaction in carrying out their duties according to their duties and responsibilities.…”

“…Various employee performance studies that have been conducted by Nurcahyani & Adnyani (2016) share indicators, including quality of work, the quantity of work, timeliness, effectiveness, and work commitment. While Juliarti et al (2018), dividing indicators include: work quality, tenacity, and endurance, discipline and attendance, cooperation, work safety issues, job responsibilities, creative initiatives, in this study which is different from other studies focus on indicators of work quantity, quality of work, timeliness, effectiveness, and employee independence (Mathis & Jackson, 2012); which is undoubtedly different used by Nurcahyani & Adnyani in adding commitment; while Juliarti et al work safety and responsibility; in this study it appears from differences in independence; this is more due to the point of view of the object of research.…”

“…In measuring employee performance by Mathis & Jackson (2012) that the elements are: quantity of work, quality of work, timeliness, effectiveness, attendance, and independence. While Juliarti et al (2018), dividing indicators include: work quality, tenacity, and endurance, discipline and attendance, cooperation, work safety issues, job responsibilities, creative initiatives, in this study the indicators used include: work quantity, work quality, timeliness, effectiveness, and employee independence.…”