Mediation of Job Satisfaction to Enhance Bank Employee Performance Affected by Compensation and Leadership Transformation Agus Salim, Lilik Kustiani, Fajar Supanto
University of Merdeka Malang
Abstract
This study aims to describe compensation, transformational leadership, job satisfaction, and employee performance, to analyze the effect of compensation, transformational leadership on job satisfaction and employee performance, to analyze the effect of job satisfaction on employee performance, and to analyze the effect of compensation and transformational leadership on employee performance through job satisfaction. The population in this study were all BPR employees in Malang Raya, totalling 471 employees with a sample size of 175 employees. This study uses descriptive analysis and structural equation modeling (SEM) analysis. The study results show that financial and non-financial compensation can create employee satisfaction in professional development and working relationships with superiors. Leadership with idealized influence can encourage employee satisfaction in professional development and satisfaction in working relationships with superiors. Financial and non-financial compensation can create the quantity and quality of employee work. Leadership that has idealized influence can encourage the quantity and quality of employee work. Financial and non-financial compensation and leadership that has idealized influence can be more able to build employee performance if it is encouraged through job satisfaction in professional development and satisfaction in implementing working relationships with superiors and co-workers. This research contributes to understanding leadership theory in different conditions and situations, which further explains how a person becomes a good leader in improving employee performance and contributes to BPR Malang Raya managers improving their performance.
