THE INFLUENCE OF COMPENSATION AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE MEDIATED BY JOB SATISFACTION (A STUDY ON EMPLOYEES OF ELRESAS WOVEN FOLDING MAT COMPANY)

Abstract

The research is titled “The Influence of Compensation and Work Environment on Employee Performance Mediated by Job Satisfaction (A Study on Employees of Elresas Folding Mat Company).” It aims to analyze the impact of compensation and work environment on employee performance, with job satisfaction as a mediating variable (study on employees of Elresas Folding Mat Company). The type of research used is quantitative research. The population in this study consists of all 248 employees of Elresas. The sample comprises 153 respondents, selected using purposive sampling methods. Data analysis techniques employ PLS-SEM (Partial Least Squares Structural Equation Modeling) with the aid of SmartPLS 3 software. The analysis includes Outer Model testing, which involves validity and reliability tests, as well as Inner Model testing, which includes Determination Coefficient testing, Path Coefficient testing, hypothesis formulation determining the t-statistic, decision-making, and mediation tests. The results indicate that compensation has a negative and insignificant effect on employee performance at Elresas Folding Mat Company. The work environment has a positive and significant effect on employee performance. Compensation positively and significantly affects employee performance through job satisfaction. Additionally, the work environment positively and significantly affects employee performance through job satisfaction.