THE EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE THROUGH JOB SATISFACTION AS INTERVENING VARIABLE

Abstract

This study aims to determine (1) the effect of compensation on job satisfaction, (2) the effect of compensation on employee performance, (3) the effect of job satisfaction on employee performance, (4) the effect of compensation on employee performance through job satisfaction at Pelita Maumere Hotel. The population in this study was employees of Pelita Maumere Hotel, a total of 40 people. Due to the limit of the population, this research was conducted by census or saturated sampling. Data were collected through a questionnaire and analyzed using the path analysis method. The results of path analysis show that compensation has a significant effect on job satisfaction, compensation has a significant effect on employee performance, and job satisfaction has a significant effect on employee performance. Based on the results of bootstrapping analysis, job satisfaction has a partial mediating role on the relationship between compensation and employee performance.
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