Influence of financial compensation and job satisfaction on employee performance with work motivation as a variable intervening

Abstract

This research aims to examine the effect of financial compensation and job satisfaction on employee performance with work motivation as an intervening variable in the Voluntary Workforce (TKS) of the General Section of the Regional Secretariat of Ogan Ilir Regency. The population in this study were all TKS in the General Section of the Regional Secretariat of Ogan Ilir Regency, totaling 64 people and sampling used a census. The analysis technique in this research uses Structural Equation Modeling (SEM) using SmartPLS software. The results of the research show that financial compensation and job satisfaction have a positive and significant effect on employee performance, financial compensation and job satisfaction have a positive and significant effect on work motivation, work motivation has a positive and significant effect on employee performance, work motivation can mediate the relationship between financial compensation and job satisfaction on employee performance. The implication of this research is that it is important for companies to take concrete steps in providing financial compensation so that it is effective and efficient, provides job satisfaction and high work motivation to all employees and improves employee performance, namely TKS General Section of the Regional Secretariat of Ogan Ilir Regency.