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

https://doi.org/10.35912/jomabs.v1i4.2337
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
Baturaja University, Indonesia
2 . Yunita SarI
Baturaja University, Indonesia
3 . Mardiah Kenamon
Baturaja University, Indonesia
View PDF
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
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 1 No. 4 (2024): August
Articles
References

    Anwar, R. (2022). Pengaruh Kepemimpinan, Stres Kerja, dan Motivasi Terhadap Kinerja Pegawai Dinas Perhubungan Kabupaten Ogan Komering Ulu. Jurnal Ilmiah Manajemen, 18(1), 44–52.

    Armstrong, M. (2009). Armstrong’s Handbook of Strategic Human Resource Management.

    Djuli, F. A., Abdussamad, Z., & Sulila, I. (2023). The Influence Of Job Satisfaction On Employee Performance. Public Policy Journal, 4(03), 186–194.

    Dunggio, M., Chusnah, C., Sukatmajaya, A., & Maulidiya, A. (2022). Peran Kompensasi Sebagai Variabel Moderasi Pada Pengaruh Disiplin Kerja Terhadap Kinerja Karyawan. Kinerja, 5(01), 96–110. https://doi.org/10.34005/kinerja.v5i01.2353

    Ekowati, V. M., Troena, E. A., & Noermijati, N. (2013). Organizational Citizenship Behavior Role in Mediating the Effect of Transformational Leadership, Job Satisfaction on Employee Performance: Studies in PT Bank Syariah Mandiri Malang East Java. International Journal of Business and Management, 8(17). https://doi.org/10.5539/ijbm.v8n17p1

    Firmandari, N. (2014). Pengaruh Kompensasi Terhadap Kinerja Karyawan Dengan Motivasi Kerja Sebagai Variabel Moderasi (Studi Pada Bank Syariah Mandiri Kantor Cabang Yogyakarta). Ekbisi, IX(1), 25–34.

    Gustina, D. dwi. (2019). Pengaruh Kompensasi, Beban Kerja dan Work Life Balance Terhadap Loyalitas Karyawan Dengan Kepuasan Kerja Sebagai Variabel Moderasi. Universitas Muhammadiyah Magelang.

    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.

    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.

    Hidayati, L., & Zulher, Z. (2022). The The Effect of Leadership and Compensation on Employee Performance with Motivation as Moderating Variables at the Pangeran Hotel Pekanbaru. IJEBD (International Journal of Entrepreneurship and Business Development), 5(1), 82–91. https://doi.org/10.29138/ijebd.v5i1.1601

    Humas. (2024). Profil Universitas Baturaja. unbara.ac.id

    Intani, M. N. (2019). The Influence Of Financial And Non-Financial Compensations Toward Employees’ Performance Through Job Satisfaction As An Intervening Variable.

    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.

    Jumharis, & Yusuf, M. (2021). Pengaruh Kompensasi Non Finansial dan Lingkungan Kerja Terhadap Kinerja Pegawai. Jurnal Manajemen, 13(1), 151–156.

    Kasmir. (2016). Manajemen Sumber Daya Manusia (Teori dan Praktik) (1st ed.). Rajawali Pers.

    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

    Lupiyoadi, R., & Ikhsan, R. B. (2015). Praktikum Metode Riset Bisnis. Salemba Empat.

    Mardiyanti, O. A., Utami, H. N., & Prasetya, A. (2018). The Effect Of Financial Compensation And Non Financial Compensation On Employees’ Performance Through Job Satisfaction As An Intervening Variable (Study on Permanent Employees of PT Citra Perdana Kendedes in Malang , East Java ). Jurnal Administrasi Bisnis, 62(1), 135–144.

    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.

    Nuraeni, A., Simangunsong, B. A. M., Assopi, Mr., & Nuraulia, S. (2023). The Effect of Financial and Non-financial Compensation on Performance Employees of PT. Glostar Indonesia. ICEMAC, 516–527. https://doi.org/10.2991/978-94-6463-226-2_41

    Prihantoko, C., & Ferijani, A. (2021). Effect of Compensation and Benefit on Employee Performance with Motivation as Moderating Variable. Journal of Management and Business Environment (JMBE), 2(2), 188. https://doi.org/10.24167/jmbe.v2i2.3048

    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

    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

    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.

    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.

    Sugiyono. (2022). Metode Penelitian Kuantitatif (Setiyawarmi (ed.)). Alfabeta.

    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

    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

    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.

    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.

    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).

  1. Anwar, R. (2022). Pengaruh Kepemimpinan, Stres Kerja, dan Motivasi Terhadap Kinerja Pegawai Dinas Perhubungan Kabupaten Ogan Komering Ulu. Jurnal Ilmiah Manajemen, 18(1), 44–52.
  2. Armstrong, M. (2009). Armstrong’s Handbook of Strategic Human Resource Management.
  3. Djuli, F. A., Abdussamad, Z., & Sulila, I. (2023). The Influence Of Job Satisfaction On Employee Performance. Public Policy Journal, 4(03), 186–194.
  4. Dunggio, M., Chusnah, C., Sukatmajaya, A., & Maulidiya, A. (2022). Peran Kompensasi Sebagai Variabel Moderasi Pada Pengaruh Disiplin Kerja Terhadap Kinerja Karyawan. Kinerja, 5(01), 96–110. https://doi.org/10.34005/kinerja.v5i01.2353
  5. Ekowati, V. M., Troena, E. A., & Noermijati, N. (2013). Organizational Citizenship Behavior Role in Mediating the Effect of Transformational Leadership, Job Satisfaction on Employee Performance: Studies in PT Bank Syariah Mandiri Malang East Java. International Journal of Business and Management, 8(17). https://doi.org/10.5539/ijbm.v8n17p1
  6. Firmandari, N. (2014). Pengaruh Kompensasi Terhadap Kinerja Karyawan Dengan Motivasi Kerja Sebagai Variabel Moderasi (Studi Pada Bank Syariah Mandiri Kantor Cabang Yogyakarta). Ekbisi, IX(1), 25–34.
  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.
  10. Hidayati, L., & Zulher, Z. (2022). The The Effect of Leadership and Compensation on Employee Performance with Motivation as Moderating Variables at the Pangeran Hotel Pekanbaru. IJEBD (International Journal of Entrepreneurship and Business Development), 5(1), 82–91. https://doi.org/10.29138/ijebd.v5i1.1601
  11. Humas. (2024). Profil Universitas Baturaja. unbara.ac.id
  12. Intani, M. N. (2019). The Influence Of Financial And Non-Financial Compensations Toward Employees’ Performance Through Job Satisfaction As An Intervening Variable.
  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.
  15. Kasmir. (2016). Manajemen Sumber Daya Manusia (Teori dan Praktik) (1st ed.). Rajawali Pers.
  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.
  18. Mardiyanti, O. A., Utami, H. N., & Prasetya, A. (2018). The Effect Of Financial Compensation And Non Financial Compensation On Employees’ Performance Through Job Satisfaction As An Intervening Variable (Study on Permanent Employees of PT Citra Perdana Kendedes in Malang , East Java ). Jurnal Administrasi Bisnis, 62(1), 135–144.
  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.
  20. Nuraeni, A., Simangunsong, B. A. M., Assopi, Mr., & Nuraulia, S. (2023). The Effect of Financial and Non-financial Compensation on Performance Employees of PT. Glostar Indonesia. ICEMAC, 516–527. https://doi.org/10.2991/978-94-6463-226-2_41
  21. Prihantoko, C., & Ferijani, A. (2021). Effect of Compensation and Benefit on Employee Performance with Motivation as Moderating Variable. Journal of Management and Business Environment (JMBE), 2(2), 188. https://doi.org/10.24167/jmbe.v2i2.3048
  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.
  26. Sugiyono. (2022). Metode Penelitian Kuantitatif (Setiyawarmi (ed.)). Alfabeta.
  27. 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
  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
  30. Tsauri, S. (2013). Manajemen Sumber Daya Manusia. In Cetakan I STAIN Jember Press.
  31. 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.
  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).