PENGARUH KOMPENSASI TERHADAP KINERJA KARYAWAN DENGAN KEPUASAN KERJA SEBAGAI VARIABEL MEDIASI PADA KARYAWAN NORIC RACING CONCEPT (NRC) MUFFLER PURBALINGGA

Abstract

The observation results found employee performance problems with fluctuations in achieving the targets given by the company, this was seen through the production results of NRC Muffler employees. The failure to achieve the target was due to employees arriving late and employees being absent without explanation or alpha. This study aims to determine the effect of compensation on employee performance with job satisfaction as a mediating variable on Noric Racing Concept (NRC) Muffler employees in Purbalingga. The type of research used is quantitative with a descriptive approach. The study population was 51 Noric Racing Concept (NRC) Muffler employees in Purbalingga. The data collection technique used was a questionnaire using path analysis with SmartPLS 4. The sampling technique used saturated sampling. The results of this study indicate that job satisfaction has a positive and significant effect on employee performance. Compensation has a positive and significant effect on job satisfaction. Job satisfaction has a positive and significant effect on performance. Job satisfaction can mediate compensation on performance. The R-Square value of the performance variable is 0.509, which means that 50.9% of the variation in employee performance can be explained by compensation and job satisfaction, while the remainder is explained by other variables outside the research model. The conclusion of this study is that compensation has a positive and significant effect on the performance and job satisfaction of Noric Racing Concept (NRC) Muffler employees. Job satisfaction also has a positive effect on performance and mediates the relationship between compensation and performance. Therefore, adequate compensation can increase job satisfaction and encourage optimal employee performance.