The Influence of Compensation and Job Satisfaction on Employee Performance with Organizational Commitment as an Intervening Variable (Case Study at KSPPS BINAMA)
Keywords:
Compensation, Job Satisfaction, Organizational Commitment, Employee PerformanceAbstract
This study examines the impact of compensation and job satisfaction on employee performance, with organizational commitment as a mediating variable. The research was conducted at KSPPS BINAMA, a financial institution operating under a cooperative legal framework. The study employs a quantitative approach using Structural Equation Modeling (SEM) to analyze relationships among variables. The census method was used, with 174 employees serving as the research sample. Data collection was conducted through questionnaires and analyzed using SPSS and SEM techniquesThe results indicate that compensation and job satisfaction have a significant positive impact on employee performance, both directly and indirectly through organizational commitment. Employees who perceive their compensation as fair and competitive tend to be more motivated, while those with higher job satisfaction demonstrate greater engagement and productivity. Furthermore, organizational commitment strengthens these relationships, indicating that employees who feel a strong emotional connection to their organization are more likely to stay loyal and contribute positively. The findings suggest that KSPPS BINAMA should enhance its compensation policies, foster a positive work environment, and implement strategies to strengthen organizational commitment. Providing career development opportunities, recognizing employee contributions, and ensuring open communication can significantly boost job satisfaction, commitment, and overall performance. This study contributes to human resource management literature by reinforcing the role of compensation, job satisfaction, and organizational commitment in shaping employee performance
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