Jurnal Ekonomi Perusahaan ISSN: 0854-8154 . , 2830-1560 . The influence of compensation, job stress, and job satisfaction on employee performance in the outsourcing company PT. Citra Bersama Zwietsy Martono1*. Freddy Rangkuti2 Management Department. Kwik Kian Gie School of Business and Information Technology. Jl. Yos Sudarso Kav 87. Sunter. Jakarta. Indonesia14350 Email Address: 1 c_sy19@hotmail. com, 2freddy. rangkuti@kwikkiangie. *Corresponding author ARTICLE INFORMATION ABSTRACT Flow: Received: October 5, 2024 Reviewed: October 17, 2024 Accepted: December 4, 2024 Published: December 20, 2024 Keywords: job compensation, job stress, job satisfaction, employee performance How to cite: Martono. , & Rangkuti. The influence of compensation, job stress, and job satisfaction on employee performance in the outsourcing company PT. Citra Bersama. Jurnal Ekonomi Perusahaan, 31. , 131-148 https://doi. org/10. 46806/jep. This study aims to analyze the influence of job compensation, job stress, and job satisfaction on employee performance in the outsourcing company PT Citra Bersama. The research method used is a quantitative approach with survey techniques. The research population consists of 70 employees working in the company. The analysis results show that job compensation does not have a significant influence on employee performance in the outsourcing company PT Citra Bersama. Job stress does not have a significant relationship with employee Job satisfaction has a significant influence on employee performance in the outsourcing company PT Citra Bersama. Factors such as recognition of performance, career development opportunities, and work-life balance are important in improving employee job Copyright A Jurnal Ekonomi Perusahaan. All rights reserved 131 | https://doi. org/10. 46806/jep. Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 INTRODUCTION The performance of a successful company is often driven by strong cooperation between management and the workforce. Employees with good performance can contribute positively, significantly influencing the overall performance of the company (Shintia & Riduwan, 2. In this context. Human Resources (HR) plays a central role. HR is not only considered an important factor but also a key element in organizational advancement (Andriani et al. , 2. Cherian et al. state that performance refers to a series of behaviors from team members that can contribute positively or negatively to achieving organizational Reforms in the labor sector are carried out with the aim of improving and enhancing the quality of the workforce and the welfare of workers. Law Number 21 of 2000 on labor unions was enacted to provide fairness and protection for workers, fulfilling the mandate of the 1945 Constitution to develop the entire Indonesian community and enhance the dignity and self-esteem of the workforce, as well as to realize a prosperous, just, and equitable society (Azis, 2. Budiartha . states that Indonesian labor law, in Article 64 of Law No. 13 of 2003 on Manpower, defines outsourcing as subcontracting work and providing labor services. On the other hand, a phenomenon occurs at the outsourcing company PT. Citra Bersama, which provides outsourcing services for both large and small companies needing labor that can be contracted directly. Based on observations at PT. Citra Bersama, the demand for services varies daily, causing different levels of work stress among employees. This stress is particularly felt by outsourced employees, who are directly involved in the work process. Employees involved in this process have several complaints, including a desire for wage increases, feeling undervalued within their workplace, and meeting superiors' demands to achieve set targets. Outsourced employees often do not take breaks during work. Their lunch breaks are used for work, and lunch is consumed at their work locations. Outsourced employees face unique pressures in performing their jobs due to the ever-changing targets they must meet, yet they are still expected to maintain good performance to avoid having their contracts terminated by the company. To achieve the desired goals with performance levels that meet expectations, extra attention from top management is required, both in addressing obstacles and leveraging supportive factors in the system's implementation. One aspect that provides support is focusing on the perceived level of job satisfaction among employees (Marbun & Jufrizen, 2. Riyadi . states that performance is directly influenced by several individual mechanisms, one of which is job satisfaction. Job satisfaction can be placed at the forefront, with individual mechanisms prioritized over other factors. Job satisfaction is a key element in the workplace that can significantly influence individual When someone feels satisfied with their job, they tend to be more dedicated, productive, and enthusiastic about achieving company goals. Meanwhile, other factors such as pressure, motivation, equality, morality, integrity, research, and decision-making have important impacts on performance. job satisfaction emerges as a fundamental foundation influencing all these aspects. A satisfied workforce generally has a higher level of motivation, copes better with stress, and contributes positively to a more ethical organizational climate. Thus, job satisfaction can be regarded as a foundation that influences other individual mechanisms, with a strong direct impact on individual performance and overall organizational effectiveness (Wijaya & Manurung. Martono and Rangkuti | 132 The influence of compensation, job stress, and job satisfaction A In addition to job satisfaction, compensation is also one of the key elements influencing employee performance levels (Ansari, 2. Today, compensation is not just a financial value but has become a top priority for many employees in the By providing fair and transparent compensation, companies can motivate the workforce to increase work intensity and achieve optimal performance, benefiting both employees and the company itself. According to Widodo & Yandi . , compensation includes all forms of payments to employees, whether in monetary form or as benefits and work facilities. This should be balanced with the responsibilities assigned to the workforce. Compensation is seen as a form of appreciation for the services provided by employees to the corporation (Mulyani, 2. In this sense, the income or payment received by employees should align with the tasks and responsibilities they undertake. Another significant factor influencing employee performance is work stress. According to Saleh et al. , stress is a dynamic condition related to demands and Work demands can take the form of responsibilities, obligations, or situations that employees face in the workplace that are uncertain. Work stress, if not properly managed by the company, can disrupt employee productivity and efficiency. This can also negatively impact the companyAos success. If a company does not promptly address the work stress experienced by its workforce, a decline in performance may occur, making it difficult for the company to compete with its rivals, as noted by Riadin & Jaenab . Therefore, wise management of compensation and addressing work stress is key to maintaining optimal performance and the overall success of the This research on employee performance refers to previous studies conducted by Riyadi . , which indicated that compensation and work stress affect employee Research by Nguyen et al. states that compensation impacts employee performance. Meanwhile, the study by Sutrisno et al. indicated that compensation and employee satisfaction influence the work outcomes of employees. Research by Yang et al. suggests that employee satisfaction and work stress affect employee performance. The study by Siengthai & Pila-Ngarm . reports that employee satisfaction positively increases workforce productivity. Therefore, based on the above declarations, the author is inspired to conduct research titled: AuThe Influence of Compensation. Work Stress, and Job Satisfaction on the Performance of Employees at Outsourcing Company PT. Citra Bersama. LITERATURE REVIEW Compensation Compensation is one of the vital elements in Human Resource Management, involving compensation issues and various related aspects that are highly responsive in workplace interactions (Hasbiah et al. , 2. This compensation system should support the core values of the organization and facilitate the achievement of company goals (Putri. Compensation in the form of compensation programs reflects the organization's efforts to retain its workforce. Compensation serves as an incentive tool that encourages individuals to work at their best because it holds significant value for both employees and employers. Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Work Stress Work stress is a common issue faced by employees, where they encounter excessive workloads, lack of comfort at work, and job dissatisfaction (Fadli & Oktariani, 2. Employees must initially learn to recognize the signs of feeling stressed, while employers need to understand that this work-related mental pressure can lead to changes in employee health, ultimately affecting the company's profits (Saragih et al. Job Satisfaction Job satisfaction refers to the extent to which individuals feel efficient or emotionally responsive to various aspects of their work. It includes employees' views on how well their job meets their expectations, their feelings of pleasure or dissatisfaction at work, and their attitudes towards their job that reflect the disparity between the appreciation they receive and what they expect (Priska, 2. Job satisfaction also involves employees' perceptions of their work environment, teamwork with colleagues, the compensation they receive, as well as the physical and emotional conditions that influence their work experience (Sutrisno, 2019: . Employee Performance Performance is the output of an individualAos work influenced by their experience, skills, determination, and the time they invest (Andreas, 2. Performance is viewed as the result of implementing specific procedures that involve all parts of the organization in utilizing available resources (Aboubichr & Conway, 2. Relationship Between Variables : Compensation and Employee Performance Providing fair and transparent compensation can motivate the workforce to enhance work intensity and achieve optimal performance, benefiting both employees and the company itself. According to Widodo & Yandi . , compensation includes all forms of payments to employees, whether in monetary form or as benefits and work facilities. This statement is supported by research findings from Riyadi . and Nguyen et al. , which indicate that compensation impacts employee performance. H1: Compensation has a significant effect on Employee Performance. Work Stress and Employee Performance Mamusung et al. state that stress is a state in which a person feels pressure beyond their capacity, which can negatively affect their health. When employees experience stress in their work, it can hinder their progress on tasks and reduce overall Based on research conducted by Yang et al. , stress is significantly negatively related to employee performance. H2: Work Stress has a significant effect on Employee Performance. Martono and Rangkuti | 134 The influence of compensation, job stress, and job satisfaction A Job Satisfaction and Employee Performance Job satisfaction is a key element in the workplace that can significantly affect individual Job satisfaction can be considered the foundation that influences other individual mechanisms, with a strong direct impact on individual performance and overall organizational effectiveness (Wijaya & Manurung, 2. Research from Ramli . and Siengthai & Pila-Ngarm . indicates that job satisfaction affects employee performance. H3: Job Satisfaction has a significant effect on Employee Performance. Compensation. Work Stress, and Job Satisfaction Simultaneously on Employee Performance Riyadi . states that performance is directly influenced by several individual mechanisms, and job satisfaction is one of them. Job satisfaction can be prioritized, with individual mechanisms taking precedence over other factors. Compensation is also one of the main elements influencing employee performance levels. Furthermore, employees experiencing stress at work, whether due to environmental or personal factors, tend to exhibit decreased performance, as explained by Heriyanti & Putri . Wise management of compensation and addressing work stress is key to maintaining optimal performance and overall company success. METHODS This research employs measurement and data analysis, thus using a quantitative According to Sugiyono . , quantitative research is a type of study where the information collected is expressed in numerical form and then analyzed using statistical methods. The data for this research were collected through a survey method. The population for this study focuses on all employees of the outsourcing company PT. Citra Bersama, totaling 70 employees. The data analysis method is a systematic procedure for collecting and organizing data obtained from interviews, notes, and documentation in a research study. After the data collection is complete, the gathered data will be processed and then analyzed using the statistical program SPSS. Table 1. Variables. Conceptual Definitions, and Operational Definitions Variable Conceptual Definitions Compensation Pertiwi et al. (X. argue that compensation is the reward given as a result of the use of effort or services rendered by Work Stress Sutagana et al. (X. state that work stress refers to the pressure felt Indicator Wages and Salaries Incentives Allowances Facilities (Sinaga, 2. Work Environment Job Content Job Requirements . Management Measurement Tools Licert Scale Licert Scale Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Variable Conceptual Definitions Indicator by employees when they face job tasks. Interpersonal Relationships at Work (Silalahi, 2. Professional Praise Scheduling Control Extrinsic rewards (Wang, 2. Job Satisfaction (X. Pratama . also feelings of liking or disliking the work employees, and it can be observed through the positive behaviors they display toward their job Employee Employee performance Performance is a central factor in the (Y) life of an organization, as the success of the depends on the extent to performance (Lubis et , 2. Source: Processed by the Researcher Quality Quantity Timelinnes Cost effectivennes Need Supervision Measurement Tools Licert Scale Licert Scale (Kurniawa, 2. RESULTS AND DISCUSSION Result Validity and Reliability The value of N = 70 with an alpha of 5% indicates that the r-table value is 0. Therefore, all variables are valid as they have values greater than 0. Additionally, the CronbachAos alpha value is greater than 0. 6, which allows us to conclude that all variables have high reliability. Normality Test The results of the normality test using the P-Plot method are as follows Figure 1. Figure 1, it can be seen that the residual points are closely clustered around the normal line, allowing us to conclude that the residual data is normally distributed. Multicollinearity Test The results of the multicollinearity test are as follows Table 2. Based on Table 2, the output coefficients in the collinearity tolerance section indicate that the tolerance values for the compensation variable (X. 668, for work stress (X. 770, and for job Martono and Rangkuti | 136 The influence of compensation, job stress, and job satisfaction A satisfaction (X. 595, all of which are greater than 0. Meanwhile, the VIF values for the compensation variable (X. 497, for work stress (X. 300, and for job satisfaction (X. 682, all of which are less than 10. Therefore, based on the decision-making criteria in the multicollinearity test, it can be concluded that there is no multicollinearity issue in the regression model. Heteroscedasticity Test The results of the heteroscedasticity test are as follows Figure 2. Based on the scatterplot (Figure . , it is observed that the points are distributed above and below The distribution of the points does not form a wavy pattern that narrows and then expands again, and there is no discernible pattern in the distribution. Therefore, it can be concluded that there is no issue of heteroscedasticity, allowing for a good and ideal regression model to be established. Figure 1. Normality Test Table 2. Multicollinearity Test Coefficientsa Unstandardized Coefficients Model (Constan. Std. Error VAR00001 VAR00002 VAR00003 Standardized Coefficients Collinearity Statistics Beta Sig. Tolerance VIF Dependent Variabel: VAR00004 Figure 2. Heteroscedasticity Test . Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 Anova Test The results of the anova test are as follows Tabel 3. Based on Table 3, the ANOVA output shows that the significance value in the F test is 0. Since 0. 000 < 0. according to the decision-making criteria, it can be concluded that compensation (X. , work stress (X. , and job satisfaction (X. have a simultaneous effect on performance (Y), which means the effect is significant. Tabel 3. Anova Test Table 4. ANOVAa Model Regression Residual Total Sum of Squares Mean Square Sig. Dependent Variabel: kinerja Predictors: (Constan. , kepuasankerja, stresskerja, kompensasikerja F Test Based on Table 3, it is also known that the calculated The regression shows F value of Since the F value of is greater than the F table value of 2. 76, the authors decide that the model with compensation (X. , work stress (X. , and job satisfaction (X. has different significant effect on performance (Y) with the model without those independent variables. Therefore, the model is fit. T Test The results of the T test are as follows Tabel 4. Table 4. T Test Coefficients uji Ta Model 1 (Constan. Dependent Variabel: kinerja Unstandardized Coefficients Std. Error Standardized Coefficients Beta Martono and Rangkuti | 138 Sig. The influence of compensation, job stress, and job satisfaction A Based on the significance values in Table 4, it is noted that the significance for the compensation variable (X. Since 0. 318 > 0. 05, it can be concluded that H1, or hypothesis one, is rejected, meaning there is no effect of compensation (X. on performance (Y). For the significance of the work stress variable (X. , the value is 393 > 0. 05, so it can be concluded that H2, or hypothesis two, is rejected, indicating there is no effect of work stress (X. on performance (Y). Meanwhile, the significance for the job satisfaction variable (X. 000 < 0. 05, which means H3, or hypothesis three, is accepted, indicating that there is an effect of job satisfaction (X. on R Square Test The results of the R square test are as follows Tabel 5. Based on Table 5, the coefficient of determination, or R-squared value, is 0. 467, which is equivalent to 46. This figure indicates that the variables of compensation (X. , work stress (X. , and job satisfaction (X. influence the performance variable (Y) by 46. 7%, while the remaining 3% . % - 46. 7%) is influenced by other variables outside this regression equation or variables that were not studied. Tabel 5. R Square Test Model Summaryb Model R Square Adjusted R Square Predictors: (Constan. , kepuasankerja, stresskerja, kompensasikerja Dependent Variabel: kinerja Std. Error of the Estimate Discussion The Effect of Work Compensation on Employee Performance In this study, work compensation and work stress do not have a significant effect on This finding contrasts with the theory proposed by Antasari, which states that compensation is a key element affecting employee satisfaction levels. The results of this study regarding work compensation differ from those of Nguyen et al. , who found that employee performance is significantly influenced by compensation. In the case of the outsourcing employees at Citra Bersama, their perceptions of compensation They have adjusted to the level of compensation received, which aligns with industry standards or is above the minimum wage, leading it to no longer be a primary factor influencing their performance. Additionally, it is essential to consider the structure and type of compensation provided to outsourcing employees. Non-financial compensation elements or other benefits not measured in this study could indirectly affect employee performance. The Effect of Work Stress on Employee Performance Similarly, the variable of work stress presents different results compared to Yang et al. who stated that there is a strong negative relationship between work stress levels and performance levels. This discrepancy can be explained by the differing research this study was conducted among outsourcing employees, mainly contract workers at Citra Bersama, while previous studies involved employees in different job contexts, such as hospital staff. Contextual factors in the outsourcing work environment, such as job types, levels of responsibility, or social support at work, may . Management Jurnal Ekonomi Perusahaan. Volume 31. Issue 02. September 2024 - February 2025 moderate the relationship between work stress and performance. For example, even if employees experience high stress levels, they may develop coping mechanisms or internal resources that help them remain productive. Furthermore, the measurement of work stress in this study did not account for specific aspects of work stress that could influence performance, such as the types of stressors experienced or the coping strategies used by employees. The Effect of Job Satisfaction on Employee Performance Job satisfaction has a significant effect on performance in this study, which aligns with the theory proposed by Riyadi that job satisfaction is a key element in the workplace that can significantly influence individual performance. This finding is consistent with RamliAos research, which indicates that job satisfaction positively affects employee Factors such as earning above the minimum wage can influence employees' perceptions of their job satisfaction, which in turn affects their performance. Differences in research contexts can also impact employees' perceptions and experiences regarding their job satisfaction. Thus, these findings highlight the importance of considering the context and characteristics of employees when examining the relationships between variables such as work compensation, work stress, job satisfaction, and performance. While general theories provide a strong foundation, contextual factors and differences among studies can yield varying results. Therefore, when applying these findings to managerial practices, it is crucial to thoroughly consider the context and characteristics of the employees involved. The Effect of Work Compensation. Stress, and Job Satisfaction on Employee Performance The interaction between work compensation, work stress, and other variables can be complex and is not always linear. For instance, employees receiving high levels of compensation may experience lower stress levels, or conversely, those under high stress might have different perceptions of their compensation. Measuring and analyzing the interactions among these variables may be necessary to gain a more accurate understanding of their relationships. Outsourcing employees may exhibit different characteristics and work motivations compared to permanent employees. They might focus more on their contracts and feel less loyalty toward the outsourcing company, which can influence their perceptions of both compensation and work stress. This complexity suggests that a deeper exploration of how these factors interact is essential for developing effective management strategies that can enhance employee performance across various employment contexts. MANAGERIAL IMPLICATION Citra Bersama Outsourcing Company should also pay attention to the factors causing work stress among their outsourced employees. This could include evaluating workload, time management, social support in the workplace, and training employees in effective coping strategies. Ensuring that employees have a healthy and supportive work environment can help reduce stress levels and enhance their performance. Martono and Rangkuti | 140 The influence of compensation, job stress, and job satisfaction A CONCLUSION This study concludes that: . work compensation has no significant effect on the performance, . work stress has no influence on the performance . job satisfaction influence employee performance significantly. For future research, it is recommended to use different research methods, such as qualitative methods, to gain a deeper understanding of work compensation, work stress, and job satisfaction. Additionally, to achieve more comprehensive results, it may be beneficial to use a larger sample or make comparisons with other outsourcing Future research is suggested to use qualitative methods to gain a deeper understanding of work compensation, work stress, and job satisfaction and their effect on job performance. Additionally, for more comprehensive results, future research can also be conducted in a larger in companies with more employees or in the same outsourcing companies for this study results confirmation or comparison. REFERENCES