The Influence of Compensation and Career Development on Employee Loyalty with Job Satisfaction as Mediator

Abstract

Research shows that a motivated workforce is substantially more productive than an unmotivated, apathetic group of employees. When workers have career opportunities and receive compensation, they are more likely to work harder for the good of the company, because they can see first-hand what their contributions mean to its success. The purpose of this research is to analyze the effect of compensation and career development on employee loyalty as mediated by job satisfaction. The sample in this study was employees of PT PLN (Persero) UPT Pulogadung. The number of samples collected was 133 samples. This study used a quantitative method based on analytical approaches using Structural Equation Modeling (SEM). Data was obtained through questionnaires distributed to employees and then processed using the Amos 26 application. According to the findings of this research, compensation and career development have a positive and significant effect on job satisfaction. Job satisfaction has a positive and significant effect on employee loyalty. Compensation and career development have no effect on employee loyalty. Mediation results show that job satisfaction can mediate the effect of compensation and career development on employee loyalty. It can be conclude that in order to increase employee loyalty, companies must pay attention to the amount of compensation and career development. Employees who are satisfied with their work have a major impact on the growth and success of the company. That’s why it’s worth the effort to create a work environment that motivates and inspires employees to do their best. Ultimately, when employee loyalty is elevated, company’s achievements become their achievements – and success is all but guaranteed.

Keywords

• compensation
• career development
• employee loyalty
• job satisfaction
• personnel management