THE EFFECT OF COMPENSATION TO EMPLOYEE PERFORMANCE WITH WORK SATISFACTION AS INTERVENING VARIABLES IN THE FINANCIAL OFFICE OF WEST SUMATERA PROVINCE

Dona Yendra and Aminar Sutra Dewi

No reqzn, OSF Preprints from Center for Open Science

Abstract: The performance of the employee produces the quantity and quality that the employee gains on the actual behavior shown in accordance with the responsibilities given to him. This study aims to examine the effect of compensation on employee performance with job satisfaction as intervening variable. Problems that occurred at the Office of Regional Finance Agency of West Sumatra Province is the issue of leadership to employees who neglect in work, in the employee's work is not timely completion of tasks given by the leadership example in the manufacture of letters not on time and delay in work. Population in this research is civil servant at Regional Finance Board of West Sumatera Province. The sample in this study amounted to 30 respondents, the study was selected by using purposive sampling technique. The data were collected from respondents and analyzed by simple linear regression, t test, test of test, and path analysis test. The result of the research shows that compensation has an effect on employee performance positively and significantly. Compensation affects job satisfaction positively and significantly, job satisfaction on employee performance and job satisfaction have positive and significant effect directly to employee's compensation and performance. This means that high job satisfaction in accordance with compensation will bring high performance employees at the Regional Finance Agency of West Sumatra Province.

Date: 2019-01-05
New Economics Papers: this item is included in nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:reqzn

DOI: 10.31219/osf.io/reqzn

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