E-ISSN: 2809-8544
THE INFLUENCE OF COMPENSATION ON EMPLOYEE
PERFORMANCE MEDIATED BY JOB SATISFACTION AT DR.
RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2* Universitas Pembangunan Pancabudi.
Indonesia Email: mesrab@dosen.
Abstract The aim of this research was to determine and analyze the influence of compensation on employee performance, both directly and indirectly, through job satisfaction at Dr.
RM.
Djoelham General Hospital in Binjai City.
The type of research was quantitative associative.
The population in this study consisted of 357 employees, with a sample size of 78 employees.
The data collection technique used was distributing questionnaires.
Data analysis in this research was conducted using the Structural Equation Model PLS with the assistance of the Smart PLS 3.
0 application tool.
The results of this study indicated that: .
Compensation had a positive and significant influence on employee performance with a t-statistic value of 11,743, which is greater than the t-table .
, and a P-Value of 0,000, which is less than the significance level .
Compensation had a positive and significant influence on job satisfaction with a t-statistic value of 34,236, which is greater than the t-table .
, and a P-Value of 0,000, which is less than the significance level .
Job satisfaction had a positive and significant influence on employee performance with a t-statistic value of 4,761, which was greater than the t-table .
, and a P-Value of 0,000, which was less than the significance level .
Compensation had a positive and significant influence on employee performance through job satisfaction with a t-statistic value of 4,680, which was greater than the ttable .
, and a P-Value of 0,000, which was less than the significance level .
, indicating that job satisfaction can mediate the relationship between compensation and employee performance at Dr.
RM.
Djoelham General Hospital.
Binjai City.
Keywords: compensation, job satisfaction, employee performance INTRODUCTION Human resources have an important role in the organization to achieve organizational Good human resource management is very necessary so that organizations can employ reliable and responsible employees, so that organizational effectiveness increases in achieving goals.
In an effort to compete and become the people's choice.
Likewise, hospitals also need to maximize the performance of their employees.
Performance is the achievement of employee work results based on quality and quantity as work performance within a certain time period which is adjusted to their duties and responsibilities (Mankunegara, 2.
According to Afandi .
Performance is the work result that can be achieved by a person or group of people in a company in accordance with their respective authority and responsibilities in an effort to achieve organizational goals illegally, does not violate the law and does not conflict with morals and ethics.
Performance can be measured based on employee work results in a certain period of time, including the quality and quantity of work in accordance with their duties and responsibilities.
To measure performance in this research the author will refer to the following theories: .
Quantity of work results, .
Quality of work results, .
Efficiency in carrying out tasks, .
Work discipline, .
Initiative, .
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
Accuracy, .
Leadership, .
Honesty, and .
Creativity.
From the results of the researchers' initial observations of the phenomenon that occurred at Dr.
RM.
Djoelham Binjai City is the decline in employee performance caused by the absence of compensation received so that employees tend to often reduce their performance because according to them the work they are doing is not in accordance with the income they receive.
According to Hasibuan .
Compensation is all income in the form of money, goods directly or indirectly received by employees as compensation for services provided to the company.
This compensation can be direct or indirect financial, and the award can also be indirect.
According to Akbar .
states that compensation is all forms of financial returns and benefits received by employees as part of an employment relationship.
measure compensation variables in this research the author refers to theory(Hasibuan, 2.
who stated, in general there are several indicators of compensation, namely:
Wages .
Wages .
Incentive wages .
office facilities .
Allowance Providing compensation is to provide job satisfaction to employees (Sofyandi, 2.
, meaning that if the company provides compensation that is in line with employee expectations, job satisfaction will be created.
Through job satisfaction felt by employees, employees will provide the best performance.
The objectives of compensation are different for each company, this of course depends on the company's interests.
According to (Hasibuan, 2.
explains that job satisfaction is an emotional attitude that is enjoyable and loves one's job.
This attitude is reflected in work morale, discipline and work performance.
Job satisfaction is enjoyed at work, outside work, and a combination of inside and outside work.
In line with(Mankunegara, 2.
who said "job satisfaction is a feeling that supports or does not support the employee himself related to his work and his A mutually supportive relationship between employees' self-needs and job demands will provide harmony in fulfilling job satisfaction.
Meanwhile according toAfandi .
Job satisfaction is a positive attitude of the workforce including feelings and behavior towards work through the assessment of one's work as a sense of respect in achieving one of the important values of work.
To measure job satisfaction in this research the author refers to theory (Afandi, 2.
Work, .
Wages, .
Promotion .
Supervision and co-workers.
From the previous explanation, the author believes that performance satisfaction can have an impact on employee performance results.
This is reinforced by the opinion(Sutrisno, 2.
which states that the impact of job satisfaction can have an influence on increasing work productivity, absenteeism and turnover as well as the impact on health.
Apart from SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
having an impact on improving performance results, the author also believes that job satisfaction can mediate compensation in improving employee performance.
According toAfandi .
employee performance is the result of work that can be achieved by a person or group of people in a company in accordance with their respective authorities and responsibilities in an effort to achieve organizational goals illegally, not violating the law and not contradicting morals and ethics.
Employee performance indicators in this research refer to opinions(Afandi, 2.
are as follows :
Quantity of work output.
Quality of work.
Efficiency in carrying out tasks.
Work discipline.
Initiative.
Accuracy.
Leadership.
Honesty.
And .
Creativity Based on the explanation of the background of the problem above, it can be stated that compensation can have an impact on job satisfaction which affects employee performance.
This is in accordance with the results of research conducted by (Fauzan, 2.
which states that compensation has a positive effect on employee motivation, job satisfaction and employee performance.
Employee motivation and job satisfaction have been proven to mediate the positive influence of compensation on employee performance.
Further research was also carried out by Pramesti & Landra .
which states that compensation has an influence on employee performance, compensation also has a positive and significant effect on job satisfaction and job satisfaction can significantly mediate the influence of compensation on employee performance at PT Karya Luhur Permai.
Denpasar City.
The purpose of this study was to analyze and investigate the role of job satisfaction in mediating the effect of compensation on employee performance at Dr.
General Hospital.
RM.
Djoelham.
Binjai City.
Job satisfaction is the main factor in achieving employee The concept of this research is as depicted in the following conceptual framework image.
Employee Performance Compensation Job satisfaction Figure 1.
Conceptual Framework SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
METHODS
This type of research is casual associative quantitative research.
This research was conducted at RSUD Dr.
RM Djoelham Binjai.
The time of this research was carried out from May 2023 to July 2023.
The population in this study were all employees with ASN status at Dr.
RM.
Djoelham.
Binjai City, numbering 357 with the details as follows.
Table 1.
Total Population Field Amount Percentage General Affairs and HR Service Field Finance Sector Total Source: RSU Dr.
RM.
Djoelham Binjai City, 2023 In this research the author used the Slovin formula to determine the sample size.
The Slovin formula for determining samples is as follows:
1 N.
2 Information:
n = Sample size/number of respondents N = Population size e = 0.
n = 4,57 n = 78.
Based on the calculation above, the sample who became respondents in this study was adjusted to as many as 78 people or around 21.
8% of all employees at General Hospital Dr.
RM.
Djoelham.
Binjai City, this was done to make data processing easier and for better test The samples taken were based on probability sampling techniques.
simple random sampling, where the researcher gives equal opportunities to each member of the population to be selected as a random sample without regard to the strata in the population itself.
The following are details of the number of samples taken.
Table 2.
Number of samples Field Population Sample Percentage Sample General Affairs & HR 8% x 35 = 7.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
Service Field Finance Sector Total 8% x 282 = 61.
8% x 40 = 8.
The data to be used from this research is data from questionnaires distributed to respondents consisting of all employees in all divisions.
The data analysis technique used in this research is a quantitative data analysis method using Structural Equation Modeling (SEM) based on Partial Least Square (PLS) using SmartPLS 3.
0 software.
The data to be used from this research is data from questionnaires distributed to respondents consisting of all employees in all divisions.
The data analysis technique used in this research is a quantitative data analysis method using Structural Equation Modeling (SEM) based on Partial Least Square (PLS) using SmartPLS 3.
0 software.
While the feasibility test that will be used in this study is the outer model test in order to obtain an outer loading value that meets the validity and reliability requirements.
Structural model testing (Inner mode.
which includes the coefficient of determination test (R.
to measure how far the model's ability to explain variations in the dependent variable.
The value of the coefficient of determination / is in the range of zero .
and one .
ycI2 (Kuncooro.
Munajad, 2.
Goodness fit test to determine the extent to which the observed data corresponds to the theoretical distribution assumed by the model or hypothesis (Ghozali & Latan, 2.
and hypothesis testing (T-Statistic Tes.
which consists of a path coefficients test to test how the direct effect of each independent variable on the dependent variable as well as the indirect effect of intervening variables in influencing the independent variable on the dependent This test is used to determine the direction of the relationship between variables .
ositive/negativ.
If the value is 0 to 1, then the direction of the relationship between variables is declared positive.
Meanwhile, if the value is 0 to -1, then the direction of the relationship between the variables is declared negative.
The hypothesis is said to be accepted if the statistical t value is greater than the t table.
According to (Ghozali & Latan, 2.
t table value criteria is 1.
96 with a significance level of 5% RESULTS AND DISCUSSION Outer Model Analysis Testing the outer model in this research uses algorithm analysis SmartPLS software version 3.
0, in order to obtain an outer loading value that meets the validity and reliability requirements.
Convergent Validity Test Results Convergent validity of the measurement model with reflexive indicators can be seen from the correlation between the score of the item/indicator and the score of the construct.
An indicator that has an individual correlation value greater than 0.
7 is considered valid but in the research development stage the indicator values are 0.
5 and 0.
6 still acceptable.
Based SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
on the results for outer loading, it shows that the indicator has a loading below 0.
60 and is not significant.
Below are presented the results of the outer loading values in the following Table 3.
Outer Loading Indicator Outer Loading Information Compensation (X) Comp1
Valid
Comp2
Valid
Comp3
Valid
Comp4
Valid
Comp5
Valid
Job Satisfaction (Z) KK1
Valid
KK2
Valid
KK3
Valid
KK4
Valid
Employee Performance (Y) KP1
Valid
KP2
Valid
KP3
Valid
KP4
Valid
KP5
Valid
KP6
Valid
KP7
Valid
KP8
Valid
KP9
Valid Source: Smart PLS Output, 2023 Based on Table 3, it can be seen that all indicators have a loading factor value > 0.
According to(Ghozali & Latan, 2.
states that an indicator is declared valid if it has a loading factor value > 0.
Thus, it can be stated that all indicators in this research are declared valid and further research can be carried out.
The following is shown in the form of a structural model as in the following figure:
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
Figure 2.
Outer Model Test Results Discriminate Validity Test Results The next test is to test discriminant validity, this test aims to determine whether a reflective indicator is a good measurement for the construct based on the principle that the indicator is highly correlated with the construct.
The following are the cross-loading results from discriminant validity testing as in the following table.
Based on table 4, it can be seen that the cross loading value for each indicator and variable is greater than the other variables and indicators.
The cross loading of the leadership SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
Director of RSUD Dr.
RM Djoelham Binjai shows that the cross loading indicator variable is greater than the cross loading of other latent variables, the cross loading of the employee performance variable indicator shows that the value of the cross loading indicator is greater than that of other latent variables, the cross loading of competency also shows that the value of the cross loading indicator is greater than that of cross loading.
loading of the latent variable.
Based on this data, it can be discriminantly stated that the cross loading results are considered valid.
Composite reliability test results The next test determines the reliability value with the composite reliability of the indicator block that measures the construct.
A construct value is said to be reliable if the composite reliability value is above 0.
Apart from looking at the composite reliability value, the reliable value can be seen in the variable construct value with Cronbach's alpha from the indicator block that measures the construct.
A construct is declared reliable if the Cronbach's alpha value is above 0.
The following is a table of loading values for the research variable constructs resulting from running the Smart PLS program in table 5 below.
Table 5.
Construct Reliability and Validity Cronbach's Composite Average Variance Indicator Alpha Reliability Extracted (AVE) Job Satisfaction (Z) Employee Performance (Y) Compensation (X) Source: Smart PLS Output, 2023 Based on Table 5, it can be classified that the AVE value for each variable tested has a value > 0.
5, indicating that all variables in this study meet the discriminant validity criteria.
To determine reliability in this research, composite reliability values were used.
The accepted value for the level of reliability is > 0.
Based on these criteria, it can be seen that all variables in this study have a value of > 0.
70 so that it can be stated that all the variables tested meet construct reliability.
Evaluation of the Structural Model (Inner Mode.
Evaluation of the structural model .
nner mode.
is carried out to ensure that the structural model built is robust and accurate.
The stages of analysis carried out in the evaluation of the structural model are seen from several indicators, namely:
Coefficient of Determination Test Results (R.
The coefficient of determination test (R.
is used to see the effect of certain independent latent variables on the dependent latent variable whether it has a substantive Based on data processing that has been carried out using the SmartPLS 3.
0 program.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
the R Square value is obtained as in the following table.
Table 6.
R Square Results Variable R Square Adjusted R Square Job Satisfaction (Z) Employee Performance (Y) Source: Smart PLS Output, 2023 Based on table 6 it is known that the adjusted R square value of the employee performance variable is 0.
937 or 93.
70%, which means that the effect of compensation on employee performance is in a very strong category.
While the R Square value for employee performance variables is 0.
939 or 93.
90%, which means that the effect of compensation on employee performance is 93.
90% and the remaining 6.
10% is influenced by other variables that have not been studied.
Meanwhile, the adjusted R Square value of the job satisfaction variable is 0.
816 or 81.
60%, which means that compensation affects job satisfaction by 60% or in the strong category with a large influence of 0.
818 or 81.
80% based on the R Square value while the remaining 8.
20% is influenced by other variables that have not been Goodness of Fit Test Results The Goodness of Fit test is a statistical method used to evaluate how well the model or statistical distribution being tested fits the observed data.
The Goodness of Fit test aims to determine the extent to which the observed data conforms to the theoretical distribution assumed by the model or hypothesis.
The goodness of fit model test can be seen by looking at the NFI value of the program.
If the NFI value > SRMR and the closer it is to 1, the better the model .
ood fi.
Based on data processing that has been carried out using the SmartPLS 0 program, the Model Fit values are obtained as follows.
SRMR
d_ULS Chi-Square NFIs Table 7.
Fit models Saturated Model
Estimated Model
2,480
2,480
125,191
Source: Smart PLS Output, 2023 Based on table 7, it can be seen that the NFI value is 0.
246 > 0.
120 so that it can be stated that the model in this study has sufficient goodness of fit and is suitable for testing SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
research hypotheses.
Hypothesis Testing Results After carrying out the inner model analysis, the next thing is to evaluate the relationship between latent constructs in order to answer the hypothesis in this research.
Hypothesis testing in this research was carried out by looking at T-Statistics and P-Values.
The hypothesis is declared accepted if the T-Statistics value is > 1.
96 and P-Values < 0.
Following are the results of Path Coefficients of direct influence between variables as in the following table.
Table 8.
Path Coefficients (Direct Influenc.
Variable Job Satisfaction (Z) > Employee Performance (Y) Compensation (X) -> Job Satisfaction (Z) Compensation (X) -> Employee Performance (Y) Original Sample (O) Sample Mean
(M)
Standard Deviation (STDEV) T Statistics (|O/STDEV|) Values Results 4,761 0,000 Accepted 34,236 0,000 Accepted 11,743 0,000 Accepted Source: Smart PLS Output, 2023 Based on the data in Table 8, it can be stated that compensation has a positive and significant effect on employee performance.
This can be seen from the T-statistic value of 743 > 1.
96 with a P-Value value of 0.
000 < 0.
This means that if compensation is increased, employee performance will also increase.
These results answer the first hypothesis in this research, namely that compensation has a significant effect on employee performance at Dr.
General Hospital.
RM.
Djoelham.
Binjai City.
Furthermore, regarding the influence of compensation on job satisfaction, the T-Statistic data obtained was 34.
> 1.
96 with a P-Value value of 0.
000 < 0.
05 so it can be stated that compensation has a positive and significant effect on employee satisfaction at Dr.
General Hospital.
RM.
Djoelham.
Binjai City.
This can be interpreted as meaning that if compensation is increased, employee satisfaction at Dr.
General Hospital will increase.
RM.
Djoelham Binjai City will also increase.
Likewise, in the third hypothesis, the influence of job satisfaction on employee performance obtained a T-Statistic value of 4.
761 > 1.
96 with a P-Value value of 0.
05, which means that job satisfaction has a positive and significant effect on Employee Performance at General Hospital Dr.
RM.
Djoelham.
Binjai City, which means that if employee satisfaction increases, employee performance will also increase.
To answer the fourth hypothesis, look at the indirect influence between variables as in the following table.
Likewise, in the third hypothesis, the influence of job satisfaction on employee performance obtained a T-Statistic value of 4.
761 > 1.
96 with a P-Value value of 0.
000 < 0.
05, which SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
means that job satisfaction has a positive and significant effect on Employee Performance at General Hospital Dr.
RM.
Djoelham.
Binjai City, which means that if employee satisfaction increases, employee performance will also increase.
To answer the fourth hypothesis, look at the indirect influence between variables as in the following table.
Likewise in the third hypothesis the effect of job satisfaction on employee performance obtained a T-Statistic value of 4.
761> 1.
96 with a P-Value of 0.
000 <0.
05, which means that job satisfaction has a positive and significant effect on Employee Performance at General Hospital Dr.
RM.
Djoelham.
Binjai City, which means that if employee satisfaction increases, employee performance will also increase.
To answer the fourth hypothesis, look at the indirect influence between variables as in the following table.
which means that if employee satisfaction increases, employee performance will also increase.
To answer the fourth hypothesis, look at the indirect influence between variables as in the following table.
means that if employee satisfaction increases, employee performance will also increase.
answer the fourth hypothesis, look at the indirect influence between variables as in the following table.
Table 9.
Indirect Effect
Variable Original Sample (O) Sample Mean
(M)
Standard Deviation (STDEV) T Statistics (|O/STDEV) Values Results Compensation -> Job Satisfaction -> Employee Performance 4,680 0,000 Accepted Source: Smart PLS Output, 2023 Based on table 9, it can be explained that the T-Statistics value is 4.
680 > 1.
96 with a P-Value value of 0.
000 < 0.
05, which means that the job satisfaction variable can mediate between compensation and employee performance at Dr.
RM.
Djoelham.
Binjai City.
The findings in this research are supported by research results from(Fauzan, 2.
which states that compensation has a positive effect on employee motivation, job satisfaction and employee performance.
Employee motivation and job satisfaction are proven to mediate the positive effect of compensation on employee performance.
Employee motivation is proven to have a positive effect on job satisfaction and employee performance.
Job satisfaction has been proven to have a positive effect on employee performance and job satisfaction has also been proven to mediate the influence of employee motivation on employee performance.
The implication for companies is that to improve employee performance optimally, high employee motivation is needed, and the compensation provided by the company to employees is an important factor in improving employee performance.
Research resultSuryani & Hastono .
which states that compensation has a positive and significant effect on performance.
Job satisfaction has a positive and significant effect on employee performance by 50.
6%, and compensation and job satisfaction simultaneously have a significant effect on employee performance by 50.
6%, with a SIBATIK JOURNAL | VOLUME 2 NO.
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RM.
DJOELHAM GENERAL HOSPITAL.
BINJAI CITY
Netty Arliza1.
Mesra B2 DOI: https://doi.
org/10.
54443/sibatik.
significance value of 0.
000 < 0.
CONCLUSION
From the results of the analysis of research data and the discussion described above, it can be concluded that compensation has a significant effect on employee performance.
This can be seen from the T-statistic value > 1.
96 and the P-Value of 0.
000 <0.
This means that if compensation is increased, employee performance will also increase.
These results answer the first hypothesis in this study, namely compensation has a significant effect on employee performance at General Hospital Dr.
RM.
Djoelham.
Binjai City.
In terms of the effect of compensation on job satisfaction, the P-Value is 0.
000 <0.
05 so that it can be stated that compensation has a positive and significant effect on employee satisfaction at Dr.
General Hospital.
RM.
Djoelham.
Binjai City.
This can be interpreted that if compensation is increased then employee satisfaction at General Hospital Dr.
RM.
Djoelham.
Binjai City will increase.
Likewise, the effect of job satisfaction on employee performance with a P-Value of 000 <0.
05, which means that job satisfaction has a positive and significant effect on employee performance at General Hospital Dr.
RM.
Djoelham.
Binjai City, which means that if employee satisfaction increases, employee performance will increase.
The results of the indirect effect test showed that the T-Statistics value was 4.
680 > 1.
96 with a P-Value of 009 <0.
05 which means that the variable of job satisfaction was indirectly able to intervene significantly in the effect of compensation on employee performance at General Hospital Dr.
RM.
Djoelham.
Binjai City.
These results can be stated that if compensation is increased, job satisfaction will increase which will indirectly have an impact on increasing employee work at General Hospital Dr.
RM.
Djoelham.
Binjai City.
REFERENCES