The Effect of Compensation, Labor Insurance, and Old Age Guarantee on Employee Satisfaction in Government Institutions

Abstract

Purpose: This study aims to find out how the effect of compensation (X1), labor insurance (X2), and old-age insurance (X3) on employee job satisfaction (Y) in a government institution. Nowadays Government Institutions are trying to continuously manage the existence of their employees so that they can work better and can show good work performance so that the organizational goals can be achieved optimally. One of the steps that can be taken is by providing compensation to employees, as well as providing labor insurance and old-age insurance, all of which aim to make employees feel satisfied in working in an organization. Theoretical framework: This study discusses several theoretical frameworks which include Work Compensation, Labor Insurance, Old Age Guarantee, Job Satisfaction and Government Institutions Design/methodology/approach: The method used is survey research, which is a research method that takes samples from a population and uses a questionnaire as a means of collecting and processing data. This type of research is explanatory research, which is a study that explains the causal relationship between research variables through reliable hypothesis testing. Findings: Based on the results of multiple linear regression analysis, the regression model equation Y = 30.458 + 0.430X1 + 0.270X2 + 0.262X3, meaning that compensation (X1), labor insurance (X2), and old-age insurance (X3) partially and simultaneously have an effect which is significant to employee job satisfaction (Y). The factor that has the most dominant influence on employee job satisfaction (Y) in government institutions is the compensation factor (X1), this indicates that the compensation factor (X1) is a factor of urgent need that must be provided by the government institutions to increase employee job satisfaction. Research, Practical & Social implications: The results are useful for decision makers in Government Institutions and other organizations on work culture in Indonesia because they show that the proposed practices have an important impact on organizational excellence. Originality/value: The value of this study stems from its handling of one of the important sectors, namely the Old Age Guarantee on Employee Satisfaction in companies, because this sector is considered the most important and effective in the process of corporate government development.

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