The Effect of Compensation and Work Environment on Employee Loyalty through Job Satisfaction as a Mediator at the Regional Revenue Management Agency of West Nusa Tenggara

Author(s): Alga Doni Saputra, Mukmin Suryatni, Sri Wahyulina

Institution: University of Mataram, Indonesia

Category: Article. IJMMU, Management, Environment

Topics: Compensation; Work Environment; Job Satisfaction; And Employee Loyalty

Abstract: This study aims to examine the impact of compensation and work environment on employee loyalty, with job satisfaction as a mediating variable. The research method employed is quantitative associative with a causal approach. The population of the study consists of civil servants (PNS) at the Regional Revenue Management Agency (BAPPENDA) of West Nusa Tenggara Province (NTB). The respondents include 92 active employees of BAPPENDA, and the study uses a census method. Data collection was conducted using questionnaires distributed via Google Forms, with responses measured on a Likert scale ranging from “strongly disagree” to “strongly agree.” Data analysis was performed using the Structural Equation Model (SEM) processed with Smart-PLS version 3.0. The findings of this research conclude that compensation and work environment positively effect job satisfaction, and job satisfaction significantly effects employee loyalty. Additionally, job satisfaction acts as a significant mediator between compensation, work environment, and employee loyalty. However, compensation has a positive but not significant effect on employee loyalty.

Article can be downloaded >> The Effect of Compensation and Work Environment on Employee Loyalty through Job Satisfaction as a Mediator at the Regional Revenue Management Agency of West Nusa Tenggara