The Impact of Compensation and Job Satisfaction on Employee Performance
A Case Study of PT Bank XYZ (Persero) Tbk
DOI:
https://doi.org/10.21787/jbp.16.2024.377-388Keywords:
Compensation, Job Satisfaction, Employee Productivity, Employee Performance, Financial InstitutionsAbstract
This research investigates the relationship between compensation and job satisfaction, as well as the influence of the latter on employee performance and productivity at PT Bank XYZ (Persero) Tbk, South Jakarta. By using SmartPLS 4.1.0.1 partial least square in analyzing the data from 135 respondents, it was found that compensation has a positive effect on employee performance but no influence on productivity, while job satisfaction has a positive effect on productivity but no influence on performance. The results showed that employee productivity has a significant influence on performance. Moreover, this study indicated that employee productivity mediates the relationship between job satisfaction and performance but fails to mediate the relationship between compensation and performance.
Downloads
References
Adams, J. S. (1965). Inequity in Social Exchange. Advances in Experimental Social Psychology, 2(C), 267–299. https://doi.org/10.1016/S0065-2601(08)60108-2
Afrahi, B., Blenkinsopp, J., Fernandez de Arroyabe, J. C., & Karim, M. S. (2022). Work Disengagement: A Review of the Literature. Human Resource Management Review, 32(2), 100822. https://doi.org/10.1016/j.hrmr.2021.100822
Alshemmari, J. M. H. J. (2023). An Empirical Study on Employee Empowerment Role in Increasing Efficiency of Employee Performance. Journal of Logistics, Informatics and Service Science, 10, 52–71. https://doi.org/10.33168/liss.2023.0104
Amoo, A., Saka, T., & Dangana, K. (2020). Compensation Strategies and Employee Retention: Any Correlation. International Journal of Management Science and Entrepreneurship, 19(7), 105–127.
Arman, Patasaka, R. I., & Park, S. Y.-S. (2024). Performance Analysis of Innovative and Flexible Modern Leadership Towards a Golden Indonesia. Jurnal Bina Praja, 16(1), 127–140. https://doi.org/10.21787/jbp.16.2024.127-140
Ashraf, M. A. (2020). Demographic Factors, Compensation, Job Satisfaction and Organizational Commitment in Private University: An Analysis Using SEM. Journal of Global Responsibility, 11(4), 407–436. https://doi.org/10.1108/JGR-01-2020-0010
Aziz, H. M., Othman, B. J., Gardi, B., Ahmed, S. A., Sabir, B. Y., Ismael, N. B., Hamza, P. A., Sorguli, S., Ali, B. J., & Anwar, G. (2021). Employee Commitment: The Relationship Between Employee Commitment and Job Satisfaction. Journal of Humanities and Education Development, 3(3), 54–66. https://doi.org/10.22161/jhed.3.3.6
Bhagwandeen, T. P. (2021). Relationship Between Intrinsic Job Satisfaction, Extrinsic Job Satisfaction, and Employee Turnover Intentions Satisfaction, and Employee Turnover Intentions. Walden University.
Boon, C., Eckardt, R., Lepak, D. P., & Boselie, P. (2018). Integrating Strategic Human Capital and Strategic Human Resource Management. The International Journal of Human Resource Management, 29(1), 34–67. https://doi.org/10.1080/09585192.2017.1380063
Boselie, P., & van der Heijden, B. (2024). Strategic Human Resource Management: A Balanced Approach. McGraw Hill Education.
Collings, D. G., Mellahi, K., & Cascio, W. F. (2018). Global Talent Management and Performance in Multinational Enterprises: A Multilevel Perspective. Journal of Management, 45(2), 540–566. https://doi.org/10.1177/0149206318757018
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE Publications.
Desmaryani, S. (2018). The Effect of Organization Culture Moderation and Big Five Personality on the Influence of Working Culture Towards the Performance of Jambi Provincial Government Civil Servants. Jurnal Bina Praja, 10(1), 81–89. https://doi.org/10.21787/jbp.10.2018.81-89
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). SAGE Publications.
Harefa, H. Y., & Sinambela, T. (2012). Pengaruh Pembinaan terhadap Motivasi Kerja dan Produktivitas Kerja Pegawai Negeri Sipil (Studi: Pemerintah Daerah Kabupaten Serdang Bedagai). Jurnal Bina Praja, 4(3), 207–216. https://doi.org/http://dx.doi.org/10.21787/jbp.4.2012.207-216
Hasmin, M. O., Paridy, A., & Lopes Amaral, M. A. (2022). The Role of Commitment, Motivation, and Performance for Career Paths for Employees of the General Bureau of the Regional Secretary of East Nusa Tenggara Province. Jurnal Bina Praja, 14(2), 339–348. https://doi.org/10.21787/jbp.14.2022.339-348
Ingusci, E., Signore, F., Giancaspro, M. L., Manuti, A., Molino, M., Russo, V., Zito, M., & Cortese, C. G. (2021). Workload, Techno Overload, and Behavioral Stress During COVID-19 Emergency: The Role of Job Crafting in Remote Workers. Frontiers in Psychology, 12, 655148. https://doi.org/10.3389/fpsyg.2021.655148
Jamal Ali, B., & Anwar, G. (2021). An Empirical Study of Employees’ Motivation and its Influence Job Satisfaction. International Journal of Engineering, Business and Management, 5(2), 21–30. https://doi.org/10.22161/IJEBM.5.2.3
Judge, T. A., Zhang, S. (Carrie), & Glerum, D. R. (2020). Job Satisfaction. In V. I. Sessa & N. A. Bowling (Eds.), Essentials of Job Attitudes and Other Workplace Psychological Constructs (pp. 207–241). Routledge. https://doi.org/10.4324/9780429325755-11
Kolk, A., Kourula, A., & Pisani, N. (2017). Multinational Enterprises and the Sustainable Development Goals: What Do We Know and How to Proceed? Transnational Corporations, 24(3), 9–32. https://doi.org/10.18356/6f5fab5e-en
Kossyva, D., Theriou, G., Aggelidis, V., & Sarigiannidis, L. (2024). Retaining Talent in Knowledge-Intensive Services: Enhancing Employee Engagement Through Human Resource, Knowledge and Change Management. Journal of Knowledge Management, 28(2), 409–439. https://doi.org/10.1108/JKM-03-2022-0174
Kozhakhmet, S., Moldashev, K., Yenikeyeva, A., & Nurgabdeshov, A. (2022). How Training and Development Practices Contribute to Research Productivity: A Moderated Mediation Model. Studies in Higher Education, 47(2), 437–449. https://doi.org/10.1080/03075079.2020.1754782
Kumar, S. (2022). The Impact of Talent Management Practices on Employee Turnover and Retention Intentions. Global Business and Organizational Excellence, 41(2), 21–34. https://doi.org/10.1002/joe.22130
Locke, E. A. (1976). The Nature and Causes of Job Satisfaction. In M. D. Dunnette (Ed.), Handbook of Industrial and Organizational Psychology (pp. 1297–1343). Rand McNally.
Na-Nan, K., Kanthong, S., & Joungtrakul, J. (2021). An Empirical Study on the Model of Self-Efficacy and Organizational Citizenship Behavior Transmitted Through Employee Engagement, Organizational Commitment and Job Satisfaction in the Thai Automobile Parts Manufacturing Industry. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 170. https://doi.org/10.3390/joitmc7030170
Narutomo, T., Luddin, M., & Suyatno, T. (2019). Improvement of Researcher’s Performance Through Empowerment, Organization Commitment and Innovation in the Ministry of Home Affairs and Regional Government. Jurnal Bina Praja, 11(1), 111–123. https://doi.org/10.21787/jbp.11.2019.111-123
Nguyen, C., & Duong, A. (2020). The Impact of Training and Development, Job Satisfaction and Job Performance on Young Employee Retention. International Journal of Future Generation Communication and Networking, 13(3), 373–386. http://sersc.org/journals/index.php/IJFGCN/article/view/19136
Petricevic, O., & Teece, D. J. (2019). The Structural Reshaping of Globalization: Implications for Strategic Sectors, Profiting From Innovation, and the Multinational Enterprise. Journal of International Business Studies, 50(9), 1487–1512. https://doi.org/10.1057/s41267-019-00269-x
Purwanto, A. (2020). Effect of Compensation and Organization Commitment on Tournover Intention with Work Satisfaction as Intervening Variable in Indonesian Industries. Sys Rev Pharm, 11(9), 287–298.
Putranti, H. R. D., Ismiyarto, I., & Tyoso, J. S. P. (2018). The Importance of Employee Performance of Civil Servant in Near-Retirement Phase at Pemalang Residence. Jurnal Bina Praja, 10(2), 263–274. https://doi.org/10.21787/jbp.10.2018.263-274
Reddy, V. S. (2020). Impact of Compensation on Employee Performance. IOSR Journal of Humanities and Social Science, 25(9), 17–22.
Shiferaw, B. A. (2024). The Effect of Compensation and Benefit Administration Practice on Empoyees Perormance (The Case of Cooperative Bank of Oromia) [Thesis, School of Post Graduate Studies St. Mary’s University]. http://hdl.handle.net/123456789/7926
Sudarman, F. (2018). Development of Socio-Cultural Competence of the Government Employees at the State Civil Service and Human Resource Development Agency of Biak Numfor Regency Papua Province. Jurnal Bina Praja, 10(2), 221–230. https://doi.org/10.21787/jbp.10.2018.221-230
Vroom, V. H. (1964). Work and Motivation. Wiley.
Weiss, T. Bernstein., & Hartle, Franklin. (2023). Reengineering Performance Management Breakthroughs in Achieving Strategy Through People. CRC Press.
Wen, D., Yan, D., & Sun, X. (2022). Employee Satisfaction, Employee Engagement and Turnover Intention: The Moderating Role of Position Level. Human Systems Management, 41(3), 407–422. https://doi.org/10.3233/HSM-211505
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Author(s)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.