Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups

Authors

  • Muhamad Al Faruq Abdullah Universitas Dian Nusantara, Jakarta, Indonesia
  • Wenny Desty Febrian Universitas Dian Nusantara, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v7i1.5136

Keywords:

Digital Workforce, Compensation, Leadership Style, Job Satisfaction, Employee Performance

Abstract

This study investigates the effect of compensation and leadership style on employee performance, with job satisfaction as a mediating variable, among digital workers in Indonesian tech startups. Using a quantitative approach, data were collected from 200 respondents through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that compensation has both direct and indirect effects on performance, while leadership style affects performance only indirectly through job satisfaction. Job satisfaction plays a significant mediating role, reflecting how psychological well-being connects compensation and leadership with performance outcomes. The model demonstrates strong explanatory power (R² = 0.643) and predictive relevance (Q² = 0.457), confirming the robustness of the proposed framework. These findings highlight the importance of integrating structural, relational, and psychological factors to improve performance in dynamic digital work environments.

References

Avolio, B. J., & Walumbwa, F. O. (2020). Authentic leadership theory, research and practice: Steps taken and steps that remain. In The Oxford Handbook of Leadership and Organizations. https://doi.org/10.1093/oxfordhb/9780199755615.013.0021

Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications.

Febrian, W. D., Purnama, Y. H., Perkasa, D. H., Abdullah, M. A. F., & Apriani, A. (2023). Human resources BSI employee's performance in Jakarta Barat: Training and development with leadership as a moderating variable post-COVID-19. KnE Social Sciences, 167–176. https://doi.org/10.18502/kss.v8i5.12967

Firmansyah, D., & Ardiansyah, M. A. (2024). The influence of career development on job satisfaction and employee performance in startup ecosystems. Indonesian Journal of Management Research, 6(1), 45–59.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.

Hanaysha, J. (2022). Testing the effects of compensation and work environment on employee performance in the digital age. International Journal of Business and Management Research, 10(2), 55–66. https://doi.org/10.5539/ijbmr.v10n2p55

Hidayat, M. S. (2024). Pengaruh motivasi kerja, disiplin kerja dan gaya kepemimpinan terhadap kinerja karyawan di PT Kalimutu Mitra Perkasa. Journal of Management and Bussines (JOMB), 6(1), 287–297.

Juhana, D., Nugraha, A., & Purnama, T. (2023). Influence of discipline and initiative on employee performance in the IT industry. Journal of Business and Management Review, 4(3), 101–108.

Kabdiyono, E. L., Perkasa, D. H., Ekhsan, M., Abdullah, M. A. F., & Febrian, W. D. (2024). Kepemimpinan, beban kerja dan burnout terhadap kinerja karyawan perusahaan garment di Kabupaten Tangerang. Journal of Management and Bussines (JOMB), 6(2), 496–509.

Li, X., & Wang, Y. (2020). Pay fairness and job satisfaction: Evidence from Chinese tech companies. Asia Pacific Journal of Human Resources, 58(2), 190–209.

Ma, Y., Huang, Z., & Zhang, L. (2022). Compensation fairness and employee outcomes in digital workplaces. Journal of Organizational Psychology, 22(4), 113–125.

Mutiara, S. T., Perkasa, D. H., Abdullah, M. A. F., Febrian, W. D., & Purwanto, S. (2024). Kinerja karyawan: Peran keadilan distributif, keselamatan kesehatan kerja (K3) dan burnout: Studi kasus pada karyawan Depo Jakarta. Jurnal Bina Bangsa Ekonomika, 17(2), 1125–1138.

Nugroho, R. A., Putra, W. A., & Lestari, S. (2023). Transformational leadership and its effect on digital innovation performance in startups. Journal of Leadership and Innovation, 5(1), 78–89.

Perkasa, D. H., Arbaina, C., Susiang, M. I. N., Parashakti, R. D., Abdullah, M. A. F., & Rostina, C. M. (2023). The influence of discipline, leadership and work environment toward employee performance at BPJSTK in DKI Jakarta branch. KnE Social Sciences, 471–480. https://doi.org/10.18502/kss.v7i10.13992

Putra, A. M., & Andini, L. (2024). Individualized consideration in leadership and its impact on employee engagement. Indonesian Journal of Organizational Behavior, 4(1), 25–36.

Rachman, R. (2021). The mediating role of job satisfaction in the relationship between compensation and employee performance. Jurnal Ilmu Manajemen Terapan, 8(1), 89–102.

Rini, N., & Yunita, D. (2022). The effect of compensation transparency on employee satisfaction in tech startups. Jurnal Manajemen Bisnis Digital, 5(2), 55–63.

Salas-Vallina, A., Alegre, J., & Fernández, R. (2020). Happiness at work and organizational citizenship behavior: Is organizational learning a missing link? International Journal of Manpower, 41(7), 1076–1094. https://doi.org/10.1108/IJM-10-2018-0353

Spector, P. E. (2021). Job Satisfaction Survey (JSS) Manual (Revised Edition). University of South Florida.

Sutarto, A. P., Febriansyah, H., & Wulandari, R. (2021). Compensation strategy and employee performance in Indonesian startups. Jurnal Ekonomi dan Manajemen, 12(1), 33–44.

Vroom, V. H. (1964). Work and motivation. John Wiley & Sons.

Wijaya, D., Hidayat, R., & Sari, F. (2023). Linking compensation satisfaction and organizational performance in digital firms. Journal of Management & Business, 11(2), 97–110.

Yuliani, R., & Farida, T. (2021). Initiative and rule compliance as predictors of employee performance. Jurnal Psikologi Industri dan Organisasi, 3(2), 89–100.

Yusuf, R., Nurhayati, A., & Hendra, M. (2022). The role of transformational leadership on digital employee engagement. Journal of Human Capital Management, 4(1), 14–26.

Zhang, W., Lin, Y., & Li, S. (2023). Performance outcomes of high-performing digital teams: An empirical study. Journal of Business Research and Technology, 12(4), 205–219.

Downloads

Published

2025-10-02

How to Cite

Abdullah, M. A. F. ., & Febrian, W. D. . (2025). Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups. Dinasti International Journal of Education Management and Social Science, 7(1), 46–55. https://doi.org/10.38035/dijemss.v7i1.5136