The Impact of Compensation Upon Employee Performance with Job Satisfaction as An Intervening Variable at the Dental Health Centre Jakarta Group
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May 31, 2024
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Abstract
Purpose: The objective of this research is to assess the impact of compensation upon employee impactiveness, while taking into account job contentment as an intervening factor, within the Dental Health Centre Group located in Jakarta.
Design/methodology/approach: This research employs a quantitative methodology and utilizes primary data obtained from a purposively sampled group of 113 employees from the Dental Health Centre Group in Jakarta. The data analysis techniques involve validity testing, reliability testing, classical assumption testing, hypothesis testing utilizing t-tests and F-tests, as well as path analysis testing. Statistical Product and Service Solution (SPSS) Version 22 is utilized for the analysis.
Findings: The outcomes suggest that compensation has an impact upon job contentment, albeit without any impact upon employee productivity. Nonetheless, job satisfaction has a significant bearing upon employee performance. It is noteworthy that the connection among compensation and employee performance is not entirely designed by job satisfaction.
Practical implications: According to the research outcomes regarding the three variables, it is apparent that compensation has a significant impact upon job contentment, which in turn affects employee productivity. Consequently, it is suggested that organizations offer fair compensation to cultivate worker satisfaction, ultimately amplifying their performance.
Originality/value: The researcher asserts that this research represents his original work and is the first of its kind utilized at the Dental Health Centre Group in Jakarta, bearing the title of the research under examination, with the exception of citations from select summaries included as references.
Paper type: Research paper
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References
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Afrizal, A., Muhammad, M., Wibisono, C., Indrayani, I., & Qarny, A. A. (2022). Mediating Role of Job Satisfaction in Relationship of Compensation, Motivation and Organizational Commitment on Employee Performance in Batam Island, Indonesia. International Journal of Advances in Social Sciences and Humanities, 1(3), 131-137. https://doi.org/10.56225/ijassh.v1i3.50
Agus Triansyah, F., Hejin, W., & Stefania, S. (2023). Factors Affecting Employee Performance: A Systematic Review. Journal Markcount Finance, 1(2), 118-127. https://doi.org/10.55849/jmf.v1i2.102
Akib, A., Mansyur, M., Kurdin, K., & Demina, D. (2022). The impact of Compensation and Work Discipline on Employee Performance in State Islamic Religious Higher Education. AL-TANZIM: Journal of Islamic Education Management, 6(1), 586-602. https://doi.org/10.33650/al-tanzim.v6i2.3480
Amin, M., Wicaksana, H., & Suhardi, S. (2023). The impact Of Transformational Leadership And Competence On Performance Through Compensation As An Intervening Variable. International Journal of Science, Technology & Management, 4(2), 350-357. https://doi.org/10.46729/ijstm.v4i2.775
Annisa Miftahul Maghfiroh, Frendika, R., & Roosallyn, A. (2023). The impact of Workload and Emotional Intelligence on Employee Performance of PT KAI (Persero) Daop II Bandung. Bandung Conference Series: Business and Management, 3(1), 226-233. https://doi.org/10.29313/bcsbm.v3i1.6450
Ariani, D. W. (2023). Relationship Model of Compensation, Motivation, Job Satisfaction and Employee Performance. International Review of Management and Marketing, 13(4), 9-13. https://doi.org/10.32479/irmm.14464
Astarina, I., Fitrio, T., Hapsila, A., Supriyadi, A., & Cahyono, D. (2022). The Role Of Training In Mediating The impact Of Competence, Compensation On Employee Performance. Journal of Economia, 18(1), 132-147. https://doi.org/10.21831/economia.v18i1.42881
Eka Mayastika Sinaga, Christin Natalia Sianipar, & Ranti Dwi Putri Saragih. (2023). THE impact OF COMPENSATION ON JOB SATISFACTION WITH WORK MOTIVATION AS AN INTERVENING VARIABLE (Case research at PT. Tiga Mutiara Nusantara Moulding Section in Dolok Merawan District). International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 3(4), 1197-1210. https://doi.org/10.54443/ijebas.v3i4.1008
Gea, Y., & Haryetti. (2014). impact of Corporate Social Responsibility (CSR) and Compensation For Performance Management Manufacturing Companies Listed in Indonesia Stock Exchange. 115-125.
Indrawanto, S. (2021). The impact of Leadership Function Compensation and Job Satisfaction on Employee Performance of the Cimahi City Environmental Service. JENIUS (Scientific Journal of Human Resource Management), 4(3), 246. https://doi.org/10.32493/jjsdm.v4i3.10453
Indripriarko, G., & Aima, M. H. (2022). impact of Work Environment and Compensation on Employee Performance with Job Satisfaction as a Mediation Variable. Journal Research of Social Science, Economics, and Management, 2(02), 134-148. https://doi.org/10.59141/jrssem.v2i02.249
Ingsih, K., Budiantoro, R. A., Hasanatina, F. H., & Ali, S. (2022). Work-life Balance and Compensation on Performance with Job Satisfaction as an Intervening Variable for Millennial Generation Banking Employees. Journal of Business Management, 13(2), 255-276. https://doi.org/10.18196/mb.v13i2.13947
Irma Kue, M. A., Nuryakin, N., & Suwanti, A. (2023). The impact of Reward, Career Development and Task-Oriented Leadership Style on Employee Performance with Job Satisfaction as Intervening Variables. Aisyah Journal: Journal of Health Sciences, 8(2), 1-8. https://doi.org/10.30604/jika.v8i2.1796
Makarim, M. H. A., & Suratman, A. (2024). How far religiosity, compensation, and organizational commitment impact toward employee performance at Waroeng Steak and Shake, special region of Yogyakarta. Asian Journal of Management Entrepreneurship and Social Science, 04(01), 375-396.
Muhammad Gandung. (2020). 4861-10343-1-Sm (2). Jenius, 3(3), 236-245.
Nalim, N., Haryono, S., & Muchran, M. (2020). The impact of Leadership Style and Compensation on the Work Performance of Merangin District Office Employees, Jambi: The Role of Work Motivation. Journal of Governance and Public Policy, 7(2), 78-87. https://doi.org/10.18196/jgpp.72124
Nur Muthia Naseh, S., Frendika, R., & Roosallyn Assyofa, A. (2023). The impact of Knowledge Sharing and Competence on Employee Performance at PT Eleska Iatki Bandung City. Bandung Conference Series: Business and Management, 3(1), 115-124. https://doi.org/10.29313/bcsbm.v3i1.5873
Nyoman Santi Ardani, P., Ayu Putu Widani Sugianingrat, I., & Ayu Putri Trarintya, M. (2023). The impact of Compensation and Motivation on Employee Performance Through the Mediation of Job Satisfaction (Case research on Savings and Loan Cooperatives in Karangasem Regency). International Journal of Social Science, Education, Communication and Economics (SINOMICS JOURNAL), 2(2), 385-396. https://doi.org/10.54443/sj.v2i2.144
Pranata, R., Iska, S., & Mastanora, R. (2023). impact of Compensation on Employee Job Satisfaction at PT Indohealth Pekanbaru. El -Hekam, 8(1), 1. https://doi.org/10.31958/jeh.v8i1.8600
Pratomo, A. (2022). The impact of Employee Compensation on Employee Performance in the Hospitality Industry. IPTA Journal, 10(1), 154. https://doi.org/10.24843/ipta.2022.v10.i01.p17
Pudjiarti, E. S., Herman, M., & Mahesa, D. (2023). The impact of Compensation on Employee Performance is designed by Job Satisfaction. IQTISHODUNA: Journal of Islamic Economics, 12(1), 209-222. https://doi.org/10.54471/iqtishoduna.v12i1.2180
Ratnasari, D., Utami, H. N., & Prasetya, A. (2023). The Impacts of Perceived Organizational Support and Work Environment on Employee Performance: The Mediating impacts of Job Satisfaction. Journal of Business Administration, 17(2), 267-281. https://profit.ub.ac.id
Setiawan, S., Sutarlan, S., & Sumarno, N. (2018). International Review of Management and Marketing The Role of Work Motivation as impact Intervening Variable of Intrinsic Reward, Supervision of Work and Satisfaction of Compensation on Employee Performance (A Sudy at Cooperatives in the City of Pekalongan). International Review of Management and Marketing, 8(4), 65-70. http:www.econjournals.com
Sinambela, L. P. (2020). Human Resource Management. PRENADAMEDIA GROUP.
Sulaeman, A., Suryani, N. L., Sularmi, L., & Guruh, M. (2021). The impact of Compensation on Employee Performance at PT Primacipta Graha Sentosa in Jakarta. JENIUS (Scientific Journal of Human Resource Management), 4(2), 137. https://doi.org/10.32493/jjsdm.v4i2.9082
Sumarjo, W. (2022). The impact of Career Development and Placement on Job Satisfaction which Impacts on Employee Performance at PT Sanco Perdika Pratama in Jakarta. JENIUS (Scientific Journal of Human Resource Management), 5(2), 485. https://doi.org/10.32493/jjsdm.v5i2.16524
Sutrisno, E. (2019). Human Resource Management. PT Bumi Aksara.
Usman, J., Sukmayuda, D. N., & Kurniawati, S. (2019). International Review of Management and Marketing Job Satisfaction and Employee Performance Shoes Industry in Tangerang Regency Banten Province. International Review of Management and Marketing, 9(1), 98-103. http:www.econjournals.com
Wandi, D., Kahpi, H. S., Fidziah, F., & Abidin, Z. (2022). The impact of Compensation on Employee Performance in Delivery Service Companies in Serang City Indonesia. Journal of Management and Business Review, 19(1), 80-91. https://doi.org/10.34149/jmbr.v19i1.235
Afrizal, A., Muhammad, M., Wibisono, C., Indrayani, I., & Qarny, A. A. (2022). Mediating Role of Job Satisfaction in Relationship of Compensation, Motivation and Organizational Commitment on Employee Performance in Batam Island, Indonesia. International Journal of Advances in Social Sciences and Humanities, 1(3), 131-137. https://doi.org/10.56225/ijassh.v1i3.50
Agus Triansyah, F., Hejin, W., & Stefania, S. (2023). Factors Affecting Employee Performance: A Systematic Review. Journal Markcount Finance, 1(2), 118-127. https://doi.org/10.55849/jmf.v1i2.102
Akib, A., Mansyur, M., Kurdin, K., & Demina, D. (2022). The impact of Compensation and Work Discipline on Employee Performance in State Islamic Religious Higher Education. AL-TANZIM: Journal of Islamic Education Management, 6(1), 586-602. https://doi.org/10.33650/al-tanzim.v6i2.3480
Amin, M., Wicaksana, H., & Suhardi, S. (2023). The impact Of Transformational Leadership And Competence On Performance Through Compensation As An Intervening Variable. International Journal of Science, Technology & Management, 4(2), 350-357. https://doi.org/10.46729/ijstm.v4i2.775
Annisa Miftahul Maghfiroh, Frendika, R., & Roosallyn, A. (2023). The impact of Workload and Emotional Intelligence on Employee Performance of PT KAI (Persero) Daop II Bandung. Bandung Conference Series: Business and Management, 3(1), 226-233. https://doi.org/10.29313/bcsbm.v3i1.6450
Ariani, D. W. (2023). Relationship Model of Compensation, Motivation, Job Satisfaction and Employee Performance. International Review of Management and Marketing, 13(4), 9-13. https://doi.org/10.32479/irmm.14464
Astarina, I., Fitrio, T., Hapsila, A., Supriyadi, A., & Cahyono, D. (2022). The Role Of Training In Mediating The impact Of Competence, Compensation On Employee Performance. Journal of Economia, 18(1), 132-147. https://doi.org/10.21831/economia.v18i1.42881
Eka Mayastika Sinaga, Christin Natalia Sianipar, & Ranti Dwi Putri Saragih. (2023). THE impact OF COMPENSATION ON JOB SATISFACTION WITH WORK MOTIVATION AS AN INTERVENING VARIABLE (Case research at PT. Tiga Mutiara Nusantara Moulding Section in Dolok Merawan District). International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 3(4), 1197-1210. https://doi.org/10.54443/ijebas.v3i4.1008
Gea, Y., & Haryetti. (2014). impact of Corporate Social Responsibility (CSR) and Compensation For Performance Management Manufacturing Companies Listed in Indonesia Stock Exchange. 115-125.
Indrawanto, S. (2021). The impact of Leadership Function Compensation and Job Satisfaction on Employee Performance of the Cimahi City Environmental Service. JENIUS (Scientific Journal of Human Resource Management), 4(3), 246. https://doi.org/10.32493/jjsdm.v4i3.10453
Indripriarko, G., & Aima, M. H. (2022). impact of Work Environment and Compensation on Employee Performance with Job Satisfaction as a Mediation Variable. Journal Research of Social Science, Economics, and Management, 2(02), 134-148. https://doi.org/10.59141/jrssem.v2i02.249
Ingsih, K., Budiantoro, R. A., Hasanatina, F. H., & Ali, S. (2022). Work-life Balance and Compensation on Performance with Job Satisfaction as an Intervening Variable for Millennial Generation Banking Employees. Journal of Business Management, 13(2), 255-276. https://doi.org/10.18196/mb.v13i2.13947
Irma Kue, M. A., Nuryakin, N., & Suwanti, A. (2023). The impact of Reward, Career Development and Task-Oriented Leadership Style on Employee Performance with Job Satisfaction as Intervening Variables. Aisyah Journal: Journal of Health Sciences, 8(2), 1-8. https://doi.org/10.30604/jika.v8i2.1796
Makarim, M. H. A., & Suratman, A. (2024). How far religiosity, compensation, and organizational commitment impact toward employee performance at Waroeng Steak and Shake, special region of Yogyakarta. Asian Journal of Management Entrepreneurship and Social Science, 04(01), 375-396.
Muhammad Gandung. (2020). 4861-10343-1-Sm (2). Jenius, 3(3), 236-245.
Nalim, N., Haryono, S., & Muchran, M. (2020). The impact of Leadership Style and Compensation on the Work Performance of Merangin District Office Employees, Jambi: The Role of Work Motivation. Journal of Governance and Public Policy, 7(2), 78-87. https://doi.org/10.18196/jgpp.72124
Nur Muthia Naseh, S., Frendika, R., & Roosallyn Assyofa, A. (2023). The impact of Knowledge Sharing and Competence on Employee Performance at PT Eleska Iatki Bandung City. Bandung Conference Series: Business and Management, 3(1), 115-124. https://doi.org/10.29313/bcsbm.v3i1.5873
Nyoman Santi Ardani, P., Ayu Putu Widani Sugianingrat, I., & Ayu Putri Trarintya, M. (2023). The impact of Compensation and Motivation on Employee Performance Through the Mediation of Job Satisfaction (Case research on Savings and Loan Cooperatives in Karangasem Regency). International Journal of Social Science, Education, Communication and Economics (SINOMICS JOURNAL), 2(2), 385-396. https://doi.org/10.54443/sj.v2i2.144
Pranata, R., Iska, S., & Mastanora, R. (2023). impact of Compensation on Employee Job Satisfaction at PT Indohealth Pekanbaru. El -Hekam, 8(1), 1. https://doi.org/10.31958/jeh.v8i1.8600
Pratomo, A. (2022). The impact of Employee Compensation on Employee Performance in the Hospitality Industry. IPTA Journal, 10(1), 154. https://doi.org/10.24843/ipta.2022.v10.i01.p17
Pudjiarti, E. S., Herman, M., & Mahesa, D. (2023). The impact of Compensation on Employee Performance is designed by Job Satisfaction. IQTISHODUNA: Journal of Islamic Economics, 12(1), 209-222. https://doi.org/10.54471/iqtishoduna.v12i1.2180
Ratnasari, D., Utami, H. N., & Prasetya, A. (2023). The Impacts of Perceived Organizational Support and Work Environment on Employee Performance: The Mediating impacts of Job Satisfaction. Journal of Business Administration, 17(2), 267-281. https://profit.ub.ac.id
Setiawan, S., Sutarlan, S., & Sumarno, N. (2018). International Review of Management and Marketing The Role of Work Motivation as impact Intervening Variable of Intrinsic Reward, Supervision of Work and Satisfaction of Compensation on Employee Performance (A Sudy at Cooperatives in the City of Pekalongan). International Review of Management and Marketing, 8(4), 65-70. http:www.econjournals.com
Sinambela, L. P. (2020). Human Resource Management. PRENADAMEDIA GROUP.
Sulaeman, A., Suryani, N. L., Sularmi, L., & Guruh, M. (2021). The impact of Compensation on Employee Performance at PT Primacipta Graha Sentosa in Jakarta. JENIUS (Scientific Journal of Human Resource Management), 4(2), 137. https://doi.org/10.32493/jjsdm.v4i2.9082
Sumarjo, W. (2022). The impact of Career Development and Placement on Job Satisfaction which Impacts on Employee Performance at PT Sanco Perdika Pratama in Jakarta. JENIUS (Scientific Journal of Human Resource Management), 5(2), 485. https://doi.org/10.32493/jjsdm.v5i2.16524
Sutrisno, E. (2019). Human Resource Management. PT Bumi Aksara.
Usman, J., Sukmayuda, D. N., & Kurniawati, S. (2019). International Review of Management and Marketing Job Satisfaction and Employee Performance Shoes Industry in Tangerang Regency Banten Province. International Review of Management and Marketing, 9(1), 98-103. http:www.econjournals.com
Wandi, D., Kahpi, H. S., Fidziah, F., & Abidin, Z. (2022). The impact of Compensation on Employee Performance in Delivery Service Companies in Serang City Indonesia. Journal of Management and Business Review, 19(1), 80-91. https://doi.org/10.34149/jmbr.v19i1.235