Determining the Effect of Wage on Employee Satisfaction through Work Environment: A Case Study of Cooperative Office of PRIMKOPPOL, Tebing Tinggi, Indonesia

Abstract

Various factors, such as wage and work environment, can influence employee job satisfaction. Rewards in the form of wages or salaries are extrinsic rewards that someone, through work activities, can achieve. It can help organizations achieve these workers to work hard to achieve high performance. In contrast, the work environment is the company's physical, social, and psychological life, affecting employee performance and productivity. This research aims to determine the influence of wages on employee satisfaction with the work environment as an intervening variable. In this study, the population was 32 employees of the PRIMKOPPOL cooperative in Tebing Tinggi. Because the target population is less than 100, the sampling technique used is the census method, where the entire population of 32 Tebing Tinggi PRIMKOPPOL Cooperative employees will be used as the research sample. This study also uses path analysis with the help of SPSS for Windows software. The results are that wage has a positive and significant effect on the work environment, wage has a positive and insignificant effect on employee satisfaction, the work environment has a positive and significant effect on employee satisfaction, and the path analysis showed that the work environment could be an intervening variable between wage and employee satisfaction.