The The Influence of Competency and Compensation on Performance and Job Satisfaction as an Intervening Study in Construction Services Companies

Abstract

The purpose of this study is to ascertain how job satisfaction among employees in construction services organizations influences performance in terms of competency and compensation. The participants in this research were workers of PT Adhi Karya (Persero) Tbk, one of Indonesia's state owned enterprises providing construction services.  The population of this study was 950, with a sample size of 255 people. Relying on a 5% percentage allowance, the calculation sample originates from the Isaac-Michael table. The research employs a quantitative methodology in conjunction with an explanatory strategy. The questionnaire used for data collection was given to 255 workers of PT Adhi Karya (Persero) Tbk who held manager-level positions. The Smart PLS (Partial Least Square Analysis) application is used in conjunction with the Structural Equation Model (SEM) analysis approach. According to the findings, competence and compensation have a considerable yet beneficial impact on performance. Job satisfaction is positively yet significantly impacted by both competence and compensation. Although there is a slight but favorable influence of job satisfaction on performance. Additionally, there is a positive but non-significant influence of competence and compensation on performance as measured by the intervening variable of job satisfaction.

Keywords: Job satisfaction, employee performance, competency, and

                    compensation