Creating Job Satisfaction through Transformational Leadership and Compensation Factors in the Banking Sector

Abstract

Employees ability to carry out their duties can be seen through their performance, so employee performance is significant for the company's success. Another important thing that companies must pay attention to regarding their human resources is the issue of job satisfaction. Job satisfaction is an employee's attitude towards their work, the difference between the rewards received by the employee and what is considered something that should be received. Apart from the sense of job satisfaction felt by employees, the compensation provided by the company is also a factor in improving performance. Based on the urgency of the problem above, this research aims to analyze the influence of transformational leadership and compensation on job satisfaction. The theoretical benefits of this research are expected to contribute to understanding leadership theory in different conditions and situations, which better explains how someone becomes a leader and emphasizes character characteristics and actions adopted to increase compensation and job satisfaction in the organization. This research method uses a quantitative approach. The population in this study were all employees at BPR Malang Raya, totaling 471 employees. Meanwhile, the sampling technique in this research used the Slovin formula with results of 175 employees. The results of the analysis show that transformational leadership positively and significantly affects job satisfaction. The research above states that compensation positively and significantly affects job satisfaction. Transformational leadership can direct subordinates to do something to achieve satisfaction in professional development and working relationships with superiors and co-workers to create a feeling of happiness about the work produced.