The Influence of Leadership and Compensation on Employee Performance via Job Satisfaction in the Harvesting Division of PT Velindo Aneka Tani, Maro Sebo Ulu, Batanghari Regency

Abstract

This study is supported by theories related to leadership, compensation, job satisfaction, and employee performance. Additionally, the author utilizes relevant prior research—including journals and theses—to support the study. The population for this study consists of all employees in the Harvesting Division of PT Velindo Aneka Tani, Maro Sebo Ulu, Batanghari Regency. A saturated sampling technique was employed, involving 65 respondents; thus, the entire population served as the study's respondents. The data analysis technique used is Path Analysis, followed by hypothesis testing via simultaneous and partial tests. The results indicate that leadership, compensation, job satisfaction, and employee performance fall into the "good" category. Leadership and compensation—both simultaneously and partially—have a positive and significant effect on job satisfaction. Leadership and compensation also positively and significantly influence employee performance, both directly and indirectly through job satisfaction as an intervening variable. Furthermore, job satisfaction was found to have a positive and significant effect on employee performance. The results also demonstrate that job satisfaction mediates the relationship between leadership and compensation and employee performance. Consequently, improving leadership quality and providing appropriate compensation can enhance job satisfaction, ultimately leading to improved employee performance. This study concludes that leadership and compensation positively influence employee performance, both directly and through job satisfaction. Job satisfaction acts as an intervening variable that strengthens the relationship between leadership and compensation and employee performance within the Harvesting Division of PT Velindo Aneka Tani, Maro Sebo Ulu, Batanghari Regency.