The Influence of Servant Leadership and Employee Compensation on Employee Engagement Through Employee Job Satisfaction as an Intervening Variable at PT Indonesia Power Suralaya Power Generation Unit

Abstract

Background - Nowadays, employee engagement is a major concern for organizational leaders around the world. Human Resources (HR) is a key element of a company that will support effective and efficient organizational governance (Christian et al., 2021). However, not all employees have the same level of engagement, factors that can affect employee commitment such as motivation, job satisfaction, leadership, diversity of co-workers, organizational culture, and others (Vinsensius et al., 2019).
 Purpose - This study aims to analyze: (1) the magnitude of the influence of servant leadership on employee engagement, (2) the magnitude of the influence of employee compensation on employee engagement, (3) the magnitude of the influence of servant leadership on employee job satisfaction, (4) the magnitude of the effect of employee compensation on employee engagement. employee job satisfaction, and (5) the magnitude of the influence of employee job satisfaction on employee engagement at PT Indonesia Power Suralaya Power Generation Unit.
 Originality/value - The novelty (originality or value) of this research is that servant leadership has no effect on employee engagement and employee compensation has no effect on employee job satisfaction.
 Research Limitations - The limitations of this study are only to get an idea of ​​the perceptions of employees of PT Indonesia Power Suralaya Power Generation Unit regarding servant leadership, employee compensation, employee job satisfaction and employee engagement.
 Design/methodology/approach - The population in this study are employees of PT Indonesia Power Suralaya Power Generation Unit which is located at Jalan Raya PLTU Suralaya, Cilegon, Banten. The research method is quantitative using a questionnaire with a Likert scale and the sampling technique is done by simple random sampling. The number of samples used as many as 32 samples to test the hypothesis. Structural Equation Modeling was used to test the statistical significance of the path coefficients, and processed using the PLS Smart 3.2.9 program.
 Findings - The results showed that servant leadership and employee compensation affected job satisfaction by 64.9%, while employee engagement was influenced by 86.8%. This direct effect shows that servant leadership has no effect on employee engagement, employee compensation has a positive and significant effect on employee engagement, servant leadership has a positive and significant effect on employee job satisfaction, employee compensation has no effect on employee job satisfaction, and employee job satisfaction has a positive effect. and significant to employee engagement.

The Effect of Organizational Culture and Job Satisfaction on Entrepreneurship in MSMEs in Bogor

“…These findings are in line with theories such as the Job Characteristics Model [59], which states that certain job characteristics, including autonomy and feedback, can lead to higher job satisfaction. In the context of entrepreneurship, job satisfaction becomes an important link between an organizational culture that supports autonomy and innovation and actual engagement in entrepreneurial activities [60], [61]. This theoretical link underscores the importance of considering not only the broader organizational culture but also employees' individual experiences and perceptions with regard to their job satisfaction and, subsequently, their propensity towards entrepreneurship.…”

The Effect of Organizational Culture, Job Satisfaction on Entrepreneurship and Innovativeness in SMEs in Bogor City

“…Meanwhile, the more aspects of the job that match the individual's desire, the higher the level of satisfaction felt. Some studies have also shown that job satisfaction can affect employee performance [44], [45]. Spiritual leadership and spiritual entrepreneurship in a company can increase employee job satisfaction [46]- [48].…”

The Role of Lecturer Engagement Antecedents on Job Satisfaction

“…Hermanto & Srimulyani, (2022) found that servant leadership did not affect employee engagement. Other researchers also found that servant leadership did not affect employee engagement (Christianto, 2022;Srimulyani, 2022). Several studies show that there is a positive association between the three dimensions of organizational justice with employee engagement (Özer et al, 2017;Javed & Tariq, 2015;Ghosh et al, 2014).…”