Determinants of Job Satisfaction Affecting Employee Performance (A Study on the Influence of Compensation and Motivation on Job Satisfaction and Its Implications on Employee Performance at PT. PLN (Persero) UP3 Customer Service Unit Cimahi City)

Authors

  • Deni Purnama Universitas Widyatama

Keywords:

Compensation, Employee Performance, Job Satisfaction, Motivation, Path Analysis

Abstract

This study investigates the determinants of job satisfaction and their impact on employee performance, focusing specifically on the influence of compensation and motivation on job satisfaction and the subsequent implications on employee performance at PT. PLN (Persero) UP3 Customer Service Unit Cimahi City. A descriptive research design with a survey approach was employed, involving 53 employee respondents. Data was collected using structured questionnaires to gather factual information on the variables of compensation, motivation, job satisfaction, and performance. Descriptive statistics were used to summarize the data, while correlation and path analysis techniques were applied to examine the direct and indirect relationships among the variables. Path coefficients and determination values were calculated to interpret the strength and direction of these relationships. The findings indicate that average scores for job satisfaction and employee performance are categorized as very high, while compensation and motivation are categorized as good. Compensation showed a moderate positive correlation with motivation (r = 0.467, p < 0.01). Path analysis revealed that both compensation and motivation have significant direct positive effects on job satisfaction, which in turn has a strong direct positive impact on employee performance (R² = 0.714). The model suggests that compensation and motivation indirectly influence performance through job satisfaction, underscoring the vital role of job satisfaction as a mediating variable. This conceptual model provides a valuable framework for management to develop effective human resource policies to improve employee satisfaction and organizational productivity sustainably.

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Published

2025-07-31

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Articles

How to Cite

Determinants of Job Satisfaction Affecting Employee Performance (A Study on the Influence of Compensation and Motivation on Job Satisfaction and Its Implications on Employee Performance at PT. PLN (Persero) UP3 Customer Service Unit Cimahi City). (2025). Proceeding of International Conference on Economics, Technology, Management, Accounting, Education, and Social Science (ICETEA), 1, 672-680. https://conference.unita.ac.id/index.php/icetea/article/view/410

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