The Effect of Compensation on Employee Performance is mediated by Job Satisfaction

Abstract

The goal of this study is to see if there is an effect of compensation on job satisfaction that is mediated by job satisfaction. The subject of study at PT FMG Semarang. The study was carried out using quantitative methods and the SEM Smart PLS software as an analysis tool. The total number of samples obtained by using a random sampling technique and the Slovin formula was 99. The data was collected by filling out online surveys with Google Forms. The R-square test, Bootstrapping, Path Coefficient, and Specific indirect effects are the data analysis methods used. According to the findings of this study, compensation has an effect on employee performance, compensation has a positive and significant effect on job satisfaction, job satisfaction affects employee performance, and job satisfaction is capable of improving employee performance.