Title:
THE ROLE OF JOB SATISFACTION MEDIATION TO THE RELATIONSHIP BETWEEN COMPENSATION AND PERFORMANCE

Authors:
Riduansah, Djoko Setyadi, Eny Rochaida, Ariesta Heksarini and Meiki Permana ,Indonesia

Abstract:
Improvement of Employee Performance can not be separating from the factors of Job Satisfaction and Compensation. This study aims to analyze the mediation role of Job Satisfaction in Compensation to Employee Performance relationship. They are using Structural Equation Modeling and with data from 250 Employee Respondents. Analysis Results, Compensation positively and significantly correlated to Job Satisfaction and Performance. Job Satisfaction positively and significantly correlated to performance. The role of complete mediation of Job Satisfaction to the relationship between Compensation and Performance proves that compensation must first improve Job Satisfaction to achieve performance improvement. Human Resource Managers in each Company to improve Employee Performance using compensation strategies to improve Job Satisfaction.