The Role of Job Satisfaction Mediation of Compensation and Work
Motivation for Employee Performance
Harinoto Harinoto and Hilmi Iman
Universitas Kanjuruhan Malang, Jl. Kebonsari 1/16, Malang, Indonesia.
harinoto@unikama.ac.id; hilmi.ngalam@gmail.com
Keywords: Compensation, work motivation, job satisfaction, employee performance, path analysis.
Abstract: The purpose of this study is to test the role of job satisfaction mediate the influence of compensation and work
motivation on employee performance Sampling method using total sampling, with 34 permanent employee
respondents. Data collected through questionnaires filled by permanent employees of PT. Bina Avia Persada
East Java, with testing technique using validity and reliability test for research instrument, normality test and
heteroskedasticity test in looking at problematic research model or not, descriptive analysis and analysis path.
The result of path analysis shows that compensation and motivation of work have a significant effect on job
satisfaction and performance of employees. Job satisfaction is proven to mediate the effect of compensation
and motivation on employee performance. The role of job satisfaction effectively mediates compensation and
motivation policies in improving employee performance. This means job satisfaction becomes a benchmark
for compensation and work motivation policies to guide better employee performance. The position of
employee job satisfaction is very important, describing the compensation policy is appropriate through the
provision of bonuses and motivation of work through affiliate motivation.
1 INTRODUCTION
The era of the 21st century one marked the digital
economy, the base of human resource management
system, more explores the comparable competence
between knowledge, skills and individual attitudes as
human capital. The strength of human resources plays
a strategic role, innovation, originality of knowledge-
based creative ideas. This condition is suitable for
airlines that grow again, both national and
international scale. More increase the development of
service business in the field of aviation, hence the
need of quality human resources more urgent. The
birth of PT. Bina Avia Persada, in 2005 addressed the
issue of competent human resource needs, through
training institutions for reliable airlines, competent
for air hostess programs, airline staff and ticketing
reservations.
Problems that occur, employee performance is not
stable, the number of educated students who are
distributed work tend to go up and down. The study
in this study, knowing the actual employee
performance, is associated with compensation policy
and work motivation through job satisfaction.
Assumptions are presented, the compensation given
to employees has a significant effect on the level of
job satisfaction and work motivation, as well as the
work (Mangkunegara, 2008). Compensation became
one of the company's attention, for the realization of
maximum employee performance. The results of
Baledi and Said's research (2017), compensation has
a significant effect on job satisfaction. Motivation is
defined as a condition or action that encourages a
person to perform an activity of activities as much as
possible to do and produce. A person with low
motivation tends to display feelings of discomfort and
displeasure with his work. So the greater the
motivation of individual employees can improve the
employee's performance. Lack of work motivation of
employees of a company will hamper the
performance of employees and also create an
atmosphere of work is not conducive (Murty and
Hudiwinarsih, 2012). This is in accordance with
research Mahesa (2010) which shows the motivation
has a positive effect on employee performance.
Employee performance issues, Handoko (2008)
states the form of business activities or programs
initiated and implemented by the leadership of the
organization or company to direct and control
employee performance. The indicators developed
include quality of work, quantity of work, timeliness,
effectiveness, and independence. Mangkunegara
Harinoto, H. and Iman, H.
The Role of Job Satisfaction Mediation of Compensation and Work Motivation for Employee Performance.
In Proceedings of the Annual Conference on Social Sciences and Humanities (ANCOSH 2018) - Revitalization of Local Wisdom in Global and Competitive Era, pages 531-536
ISBN: 978-989-758-343-8
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
531
(2008) understand the performance of the work in
quality and quantity achieved by a person in carrying
out the task according to the responsibility given. The
problem of job satisfaction, Handoko (2008), states
the emotional state of fun or unpleasant employees in
understanding their work. Mondy and Robert (1999)
employee job satisfaction is an important issue worth
noting its relationship with employee productivity
and dissatisfaction is often associated with high levels
of job demands and complaints. Job satisfaction
factors (Luthans, 2002), work in itself, pay, supervise,
co-workers and promotions. Mondy and Robert
(1999) there are 3 reasons managers care about job
satisfaction, that is, dissatisfied people more often
pass the job and the opportunity to resign, satisfied
people have good health and a longer life, and job
satisfaction will be brought to personal life out of
work.
Compensation is to offer wages to employees and
systematize significant budgets with employers. The
same compensation: all income in the form of money,
goods directly or indirectly received by employees in
return for services provided to the company
(Hasibuan, 2011). The technical uses of the time
(hours, weeks, or months) system, the output (output)
of the unit generated (per piece, meter, litter, and
kilogram), bulking system (based on the volume of
work and working hours). So compensation: the right
of the employee to be given the company in return for
the work that is charged to the employees. Direct
compensation is the compensation received by an
employee in the form of salary, bonus, holiday
allowance. Indirect compensation, in the form of
awards, employment and other facilities and benefits.
Motivation according to Hasibuan, (2011) is a skill,
in directing employees and organizations to work
well, so that organizational goals are achieved.
According to Sopiah (2008) motivation is a state
where effort and one's hard will be directed to the
achievement of certain results or goals, in the form of
productivity, presence or other creative work
behavior. The purpose of providing motivation for
employees who are motivated to work in accordance
with the reference work and responsibilities given so
that corporate objectives can be achieved with good.
Except, there is also a quality effort and directed and
consistent with organizational goals to be achieved.
McClelland states achievement, power and
relationships are three important needs that can help
explain motivation. Achievement is an
encouragement to exceed, reach the standards, and
strive to succeed. The need for power makes others
behave in such a way that they will not behave
otherwise, and the need for relationships is a friendly,
intimate interpersonal desire within an organization's
environment. So the motivation of work according to
Mc. Clelland (1961) is the drive to achieve the need
for achievement, the drive to achieve the need for
power, the impulse need for affiliation.
Nurcahyani & Dewi Adnyani (2016) research
conducted at PT. Sinar Sosro Bali, the result that job
satisfaction mediates the effect of compensation and
motivation on employee performance. Compensation
and work environment have a significant effect on job
satisfaction, and job satisfaction has a significant
effect on employee performance. Research Mahesa
(2010) states that motivation and job satisfaction have
a positive effect on employee performance and
duration of work moderate job satisfaction on
performance but not successful moderate work
motivation to performance.
If the compensation received by employees is
high, then employees will feel more satisfied.
Conversely, if the compensation received by
employees a little, then employees will feel
dissatisfied in working. Work motivation is believed
to have a positive effect on employee job satisfaction.
If an employee's work motivation is higher or
increased, then their job satisfaction will increase as
well. Conversely, if the work motivation decreases
will decrease employee job satisfaction. The result of
research obtained by Baledi and Said (2017) is job
satisfaction has a significant effect on employee
performance. So the more satisfied employees, the
employees will be more show their best performance.
Conversely, if employees are not satisfied in working,
then in him will arise feeling lazy, so that will have
an impact on the declining performance of
employees. From the description above, the research
hypothesis is:
H1: Compensation and Motivation significantly
influence Employee Satisfaction
H2: Compensation and Motivation significantly
influence Employee Performance
H3: Job Satisfaction has a significant effect on
Employee Performance
H4: Compensation has significant effect on
Employee Performance through Job
Satisfaction
H5: Work motivation significantly influence
Employee Performance through Job
Satisfaction.
2 RESEARCH METHOD
This research includes explanatory research that
explains the causal relationship between exogenous
ANCOSH 2018 - Annual Conference on Social Sciences and Humanities
532
variables and endogenous variables with path
analysis method. The determination of the scope of
this study is in accordance with the research
objectives and model framework, which discussed the
problem of compensation, work motivation, job
satisfaction and employee performance in PT Bina
Avia Persada branch of East Java. Population in this
research is all staff permanent employees of PT. Bina
Avia Persada East Java branch covering Surabaya,
Malang and Jember city, with total sampling of 34
people, with male dominant characteristic, working
period of 2-5 years, age more than 30 years Scale of
measurement (score) using Likert scale 1-5, to
measure attitudes, opinions and employee
perceptions about social phenomena in the company.
The result after tested the validity and reliability is
quite convincing, greater than the standard set. The
relationship between independent variable with
dependent variable by path analysis, Sugiyono
(2013).
3 RESEARCH RESULT
Variable compensation consisting of salary, bonus,
allowance, and insurance, dominant formed by bonus
with good appreciation. While the salary, received a
low appreciation. Motivational variables formed by
the drive to achieve success, power, and affiliation are
dominant in the motivation of affiliation, by
following the association and the lowest appreciation
of the need for shelter. Job satisfaction variables
formed by psychological, social, physical and
financial factors, dominant psychological factors with
the talent and skill and the lowest appreciation in
lighting. Employee performance variables formed by
indicators of quality, quantity, timeliness,
effectiveness and independence indicate that the
superior item is a high work commitment and the
lowest appreciation on timely completion of tasks.
The effect of compensation and work motivation
on job satisfaction, according to table 1.
Obtained standardize beta ,
with significance
value for variable of
compensation, and standardize beta , the
value of
with significance value for
motivation variable, thus stated that
compensation
and motivation
have a
significant effect on job satisfaction
.
Table 1: Analysis of variable path
with
.
Variable
Standardize
Beta
T
count
Sig
Compensation
0,466
3,169
0,003
Work
Motivation
0,328
2,229
0,033
F count = 13,058 F table : 3,276
sign : 0,000
T table = 2,032
Alpha = 0,05
Adjusted R Square = 0,422
Source: Primary Data is processed in 2018.
The result of simultaneous analysis obtained
with
significance value and value of
Adjusted R Square or which mean
that contribution of compensation and motivation to
job satisfaction equal , it is stated that the
causal relationship simultaneously between
compensation
and motivation
on job
satisfaction
is significant.
Partial analysis of the effect of compensation and
motivation on employee performance obtained
result according to table 2. Standardize beta
with
significance value for variable
compensation. Standardize beta
with a significance
value of for the motivation
variable, thus stated that compensation
and
motivation
significantly influence
employee performance
Table 2: Analysis of variable path
with
.
Variable
Standardize
Beta
T
count
Sig
Compensation
0,515
4,315
0,000
Work
Motivation
0,429
3,589
0,001
F count = 27,754 sign : 0,000
T table = 2,032
Alpha = 0,05
Adjusted R Square = 0,619
Source: Primary Data is processed in 2018.
The result of simultaneous analysis obtained
with
significance value and value of
Adjusted R Square or meaning that
compensation and motivation contribution to
employee performance equal to it is stated that
the causal relationship simultaneously between
compensation
and motivation
on employee
performance
is significant.
Analysis of the effect of job satisfaction on
employee performance obtained results
The Role of Job Satisfaction Mediation of Compensation and Work Motivation for Employee Performance
533
according to table 3. Standardize beta
with
significant value for job
satisfaction variables. Based on the results of this
analysis, job satisfaction
significantly
affects employee performance
.
Table 3: Analysis of variable path
with
.
Variable
Standardize
Beta
T
count
Sig
Job
Satisfaction
0,547
3,693
0,001
T table = 2,032
Alpha = 0,05
Source: Primary Data is processed in 2018.
The result of the analysis of the compensation
path to employee performance mediated by job
satisfaction, according to table 4 shows that the
direct influence of and the indirect
influence of while for the total effect is
This shows that job satisfaction
effectively mediates the effect of compensation
on employee performance is or
Table 4: Analysis of variable path
with
through
Direct influence
0,515
Indirect influence
0,255
Total influences
0,770
Source: Primary Data is processed in 2018
This means the management of PT. Bina Avia
Persada East Java has managed to provide proper and
appropriate compensation, thereby impacting
employee performance. The compensation makes
employees feel satisfied in working and make
employees try as much as possible to help companies
achieve goals so that indirectly will make employee
performance better. Employee performance is
important for the company, whether or not a company
depends on whether or not good employee
performance.
The result of the analysis of motivation path to
employee performance mediated by job
satisfaction, the result according to table 5. that
the direct influence of and the indirect
influence of 0.179 while the total effect is
This shows that job satisfaction effectively
mediates the effect of motivation on employee
performance is or meaning the
management of PT. Bina Avia Persada East Java
has managed to build work motivation through
employee job satisfaction.
Table 5: Analysis of variable path
with
through
.
Direct influence
0,429
Indirect influence
0,179
Total influences
0,608
Source: Primary Data is processed in 2018
With job satisfaction awakened motivation work,
employees are aware of the duties and responsibilities
as an employee. Means employees perform tasks with
full awareness for the realization of corporate goals.
The path equation model obtained the following
results:
Figure 1: Framework of research model.
4 DISCUSSION
4.1 The Influence of Compensation and
Work Motivation on Job
Satisfaction
Compensation effect on job satisfaction, and work
motivation affect the job satisfaction. Results together
with compensation and work motivation affect the job
satisfaction. Compensation is everything employees
receive in return for the contributions they have made
to the company. Compensation policies in the form of
bonuses, on time can prevent employees out (Mondy
and Robert, 1999). The provision of appropriate,
balanced and decent compensation in accordance
with the services employed by employee’s increases
job satisfaction. Baledi and Said research (2017)
compensation has a significant effect on job
satisfaction, which supports the theory of
Mangkunegara (2008) that the compensation to
employees affect the level of job satisfaction and
work motivation, and the work.
ANCOSH 2018 - Annual Conference on Social Sciences and Humanities
534
4.2 The Effect of Compensation and
Work Motivation on Employee
Performance
Compensation policy affects employee performance,
and motivation affects employee performance.
Together compensation and motivation affect the job
satisfaction. This is in accordance with research
Baledi and Said (2017), that the compensation effect
on employee performance, motivation also affects
employee performance. Murty and Hudiwinarsih
(2012) say that a motivated employee will be
energetic. The same thing is delivered, Robbins
(2002) work motivation is needed to accelerate
employee performance.
4.3 The Influence of Job Satisfaction
on Employee Performance
Job satisfaction affects employee performance. This
shows that job satisfaction positively affects
employee performance. This research is in
accordance Harinoto research (2017), Baledi and Said
(2017) that job satisfaction has a positive effect on
employee performance. The more satisfied
employees, the more performing performance.
Conversely, if employees are not satisfied at work, it
will arise feeling lazy, which affects the declining
performance. Satisfaction obtained by employees
from work there is conformity with the expected, so
what is received can encourage employees to achieve
optimal performance. This becomes a feedback that
affects employee performance. The results of this
study support the theory of Hasibuan (2008) and
reject previous research which states there is no
relationship of job satisfaction with employee
performance, Chen (2004).
4.4 The Effect of Compensation on
Employee Performance through
Job Satisfaction
The results of job satisfaction research mediate the
effect of compensation on employee performance,
thereby providing compensation policy must be on
target, with the type of bonus compensation can
increase job satisfaction and effectively mediate the
effect of compensation on employee performance.
This study is in line with Spector (1997), that job
satisfaction mediates the effect of compensation on
employee performance. Provision of compensation to
improve employee welfare, to motivate employees,
increase productivity and retain potential employees
(Mondy and Robert, 1999). Rejecting Baledi and
Said's (2017) study of negative satisfaction mediates
compensation for employee performance.
4.5 The Influence of Work Motivation
on Employee Performance through
Job Satisfaction
Result of research that motivation has influence to
employee performance mediated by job satisfaction.
This means that job satisfaction effectively mediates
the influence of motivation on employee
performance. As the research of Wexley and Yulk,
(1992), Robbins (2002), Nurcahyani and Adnyani
(2016) research at PT. Sinar Sosro Factory Bali, that
job satisfaction mediate the influence of motivation
on employee performance. Murty and Hudiwinarsih
(2012) say that a motivated employee will be
energetic. Similarly Riana, Gede (2015) motivation to
improve performance when employees feel satisfied
to work.
5 CONCLUSIONS
Based on the results of this study, it can be concluded
that the appropriate compensation in the form of
bonus (excluding salary) increase morale, the
implication to improve employee performance and
employee job satisfaction. Similarly, motivation run
by the management managed to encourage employee
performance improvement and job satisfaction. The
dominant motivation in the effort to build affiliation,
by participating in the association, a comfortable
working atmosphere. The role of job satisfaction
effectively mediates compensation and motivation
policies in improving employee performance. This
means job satisfaction becomes a benchmark for
compensation and work motivation policies to guide
better employee performance. The position of
employee job satisfaction is very important,
describing the compensation policy is appropriate
through the provision of bonuses and motivation of
work through affiliate motivation. Suggestions for
subsequent researchers can develop similar research
by adding other factors that effectively improve
employee performance.
The Role of Job Satisfaction Mediation of Compensation and Work Motivation for Employee Performance
535
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