The Influence of Compensation and Work Environment on Employee Performance Through Job Satisfaction as an Intervening Variable (Study At PT. Shankara)

Rusdi1*, & Dedi Rianto Rahadi2
1 STIA dan Pemerintahan Annisa Dwi Salfaritzi, Indonesia
2Management, President University, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2024.7109

Abstract

This research aims to test the validity and reliability of compensation variables, work environment, job satisfaction and employee performance at PT. Shankara. A total of 152 valid responses were analyzed using the partial Least Squares Structural Equation Modeling (PLS-SEM) method via SMART-PLS 3.3.2 software. This research shows that job satisfaction and compensation have a direct positive influence on employee performance, while the work environment has a positive influence on job satisfaction over time but is not significant on employee performance. In conclusion, compensation, work environment and job satisfaction play an important role in improving employee performance through job satisfaction. Management should consider integrating internal systems to improve the accuracy of the payroll process

Keywords: Work environment; Job satisfaction; Employee performance; Compensation.

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