The Relationship of Leadership Style, Spiritual Motivation and Compensation on Employee Performance: Mediating Role of Employee Loyalty

Abstract

Leadership style is considered good in certain times may not be appropriate for other times. Every leader is born with a distinctive typology, according to the demands of the times. The results of temporary observations indicate that the political leadership of the regional head of the Riau Islands Province has not been able to move employees to be close to the community and prioritize the public interest towards prosperity through power. Research object 350 respondents Riau Islands Provincial Government Employees. Slovin formula is qualified to be used as samples are 187 respondents. Data analysis was performed using the Structural Equation Model (SEM) method. The software used for structural analysis is AMOS * version 24. The results of the study indicate that spiritual motivation, leadership style and compensation have a significant positive effect on employee loyalty. Also, spiritual motivation, leadership style and employee loyalty have a significant positive effect on employee performance. Besides that, compensation does not significant effect on employee performance. This study proves that there is indeed a problem with the determination of the organizational commitment variable on the performance variable, therefore it is necessary to increase the organizational commitment for employees in the BP2RD environment of the Riau Islands Provincial Government.