The Mediating Function of Job Satisfaction in the Interaction Between Financial and Non-Financial Compensation and Employee Performance
Fungsi Mediasi Kepuasan Kerja dalam Interaksi antara Kompensasi Finansial dan Non-Finansial serta Kinerja Karyawan
DOI:
https://doi.org/10.21070/jbmp.v12i1.2267Keywords:
Employee performance, Financial compensation, job satisfaction, non-financial compensationAbstract
This study investigates how financial and non-financial compensation influence employee performance at PT Urchindize Madura, Indonesia, with job satisfaction as a mediating factor. Using a quantitative explanatory design, data were collected from all 46 employees and analyzed through partial least squares structural equation modeling (PLS-SEM). Results indicate that financial compensation significantly enhances job satisfaction, which in turn improves employee performance. Job satisfaction partially mediates the link between financial compensation and performance, while non-financial compensation shows no significant effect. These findings suggest that organizations should focus on competitive financial reward systems and re-evaluate non-financial benefits to better meet employee expectations. By strengthening compensation strategies grounded in employee satisfaction, companies can foster greater motivation, satisfaction, and productivity.
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