The effect of non-financial compensation on job satisfaction and its impact on employee performance at Baturaja University

Published: Aug 5, 2024

Abstract:

Purpose: This study aimed to analyze the impact of non-financial compensation on job satisfaction and its effect on the performance of Baturaja University.

Methods: This study employed a quantitative approach. Data were collected through a survey method by distributing questionnaires to 53 employees of Baturaja University as the research population. Path analysis was used to examine the direct and indirect relationships between independent, dependent, and mediating variables. The variables in this study are non-financial compensation, employee performance as the dependent variable, and job satisfaction as the mediating variable.

Results: The analysis results show that non-financial compensation has a positive and significant effect on employee job satisfaction. Additionally, nonfinancial compensation has a positive and significant impact on employee performance. The path analysis indicates that job satisfaction mediates the effect of non-financial compensation on employee performance. Therefore, Baturaja University is expected to pay more attention to the nonfinancial aspects of compensation to enhance employee satisfaction and performance.

Keywords:
1. non-financial compensation
2. employee performance
3. job satisfaction
Authors:
1 . Asmaul Husnah
2 . Yunita SarI
3 . Mardiah Kenamon
How to Cite
Husnah, A., SarI, Y., & Kenamon, M. (2024). The effect of non-financial compensation on job satisfaction and its impact on employee performance at Baturaja University. Journal of Multidisciplinary Academic Business Studies, 1(4), 823–837. https://doi.org/10.35912/jomabs.v1i4.2337

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References

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    Supraja, G. (2020). The Effect of Financial and Non-Financial Compensation on Performance of Employees. The International Journal of Business Management and Technology, 4(4), 35–39. www.theijbmt.com

    Suryanto, D. (2020). Effect Of Motivation and Job Satisfaction On Employee Performance With Compensation As An Intervening Variable. Management Studies and Entrepreneurship Journal, 1(2), 98–109. http://journal.yrpipku.com/index.php/msej

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    Tsauri, S. (2013). Manajemen Sumber Daya Manusia. In Cetakan I STAIN Jember Press.

    Vita, U. D. (2016). The Effect of Financial and Non-Financial Compensation on Employees’ Performance Satisfaction and Performance Loyalty (Case Study On Employees at Production Subdivision of Abas Trade Enterprises of Banyuwangi). The Third Conference on Entrepreneurship, 3, 221–235.

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  7. Gustina, D. dwi. (2019). Pengaruh Kompensasi, Beban Kerja dan Work Life Balance Terhadap Loyalitas Karyawan Dengan Kepuasan Kerja Sebagai Variabel Moderasi. Universitas Muhammadiyah Magelang.
  8. Hartono, R., Effendi, & Nurwati, E. (2021). The Effect of Compensation and Motivation on Employee Performance with Job Satisfaction as Intervening Variables at Hotel XYZ , in Jakarta. Majalah Ilmiah Bijak, 18(1), 153–166.
  9. Herman, B. (2020). Pengaruh Kompensasi Finansial, Non Finansial, dan Fleksibilitas Kerja Terhadap Kinerja Driver Ojek Online Dengan Kepuasan Kerja Sebagai Variabel Intervening Pada Gojek Di Makassar. Universitas Hasanuddin.
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  13. Juliani, B., Dahlia, & Sari, Y. (2022). Hubungan Gaya Kepemimpinan, Stress Kerja Dan Employee Engagement Terhadap Kinerja Pegawai Pada Dinas Pemadam dan Penyelamatan Kabupaten Ogan Komering Ulu. Jurnal Terapan Ilmu Ekonomi, Manajemen Dan Bisnis, 2(2), 2746–4229.
  14. Jumharis, & Yusuf, M. (2021). Pengaruh Kompensasi Non Finansial dan Lingkungan Kerja Terhadap Kinerja Pegawai. Jurnal Manajemen, 13(1), 151–156.
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  16. Kisanyanya, A. G. (2020). Financial and Non-Financial rewards and Employee Performance in Sugar companies in Kenya: A case study of West Kenya Sugar Company Limited. IOSR Journal of Business and Management (IOSR-JBM), 22(5), 51–59. https://doi.org/10.9790/487X-2205055159
  17. Lupiyoadi, R., & Ikhsan, R. B. (2015). Praktikum Metode Riset Bisnis. Salemba Empat.
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  19. Mundakir dan zainuri. (2018). Pengaruh Kompensasi dan Motivasi Terhadap Kinerja Pegawai Negeri Sipil Dengan Kepuasan Kerja Sebagai Variabel Intervening. Business Management Analysis Journal (BMAJ), 1(1), 37–48.
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  22. Riatmaja, D. S., & Wibawanto, S. (2022). The Effect of Financial Compensation and Non-Financial Compensation on Employee Performance with Motivation as an Intervening Variable in Yogyakarta Startup Companies. FOKBIS (Media Pengkajian Manajemen Dan Akuntansi), 21(1), 124–131. https://doi.org/10.32639/fokbis.v21i1.99
  23. Rosalia, P. D., Mintarti, S., & Heksarini, A. (2020). The Effect of Compensation and Motivation on Job Satisfaction and Employee Performance at SMK Medika Samarinda. Saudi Journal of Business and Management Studies, 5(7), 448–454. https://doi.org/10.36348/sjbms.2020.v05i07.009
  24. Sholihin, U. (2021). Dampak Kompensasi Kerja terhadap Kinerja Karyawan di Masa Pandemi Covid 19 dengan Kepuasan Kerja sebagai Variable Intervening. Jurnal Manajemen Dan Kewirusahaan, 6(1), 86–99.
  25. Subekti, A. (2021). The Influence of Performance Appraisal System Towards Job Satisfaction, Motivation, As Well As Employee Performance. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(2), 104–114.
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  28. Suryanto, D. (2020). Effect Of Motivation and Job Satisfaction On Employee Performance With Compensation As An Intervening Variable. Management Studies and Entrepreneurship Journal, 1(2), 98–109. http://journal.yrpipku.com/index.php/msej
  29. Sutianingsih, Budiyanto, & Suwitho. (2021). Mediation Role of Job Satisfaction on the Influence of Non-Financial Compensation and Transactional Leadership on Employee Performance. The International Journal of Business & Management, 9(7), 79–84. https://doi.org/10.24940/theijbm/2021/v9/i7/164651-399192-1-sm
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  32. Wardhana, G. W. (2018). Pengaruh Motivasi Kerja dan Kompensasi Terhadap Kinerja Karyawan Rumah Sakit Dr. Moewardi Surakarta Dengan Kepuasan Kerja Sebagai Variabel Moderating. Jurnal Optimum, 8(2), 212–223.
  33. Yupianti, S., Sari, Y., & Wiranawata, H. (2023). Pengaruh Mutasi dan Promosi Terhadap Kinerja Pegawai di Kantor Dinas Ketahanan Pangan Kecamatan Muaradua Kabupaten OKU Selatan. Jurnal Manajemen Dan Bisnis, 14(1).