Examining Employee’s Compensation Satisfaction and Work Stress in A Retail Company and Its Effect to Increase Employee Job Satisfaction

Abstract

Employees are considered as important asset of business organization.Their satisfaction in doing the job is vital to the performance achievement, both for individual and organization. The retail industry also face similar challenge to develop program that enhance job satisfaction for employee. This study examine the relationship among compensation, work stress, and job satisfaction in a retail company in Samarinda. Questionnaires were distributed to 146 employees and a total of 107 usable responses were returned. Data analysis conducted by using regression with bootstrapping and found that compensation did not have effect on work stress. On the other hand, compensation has significant positive relation towards job satisfaction. Work stress also have effect on job satisfaction but in reverse direction (negative). With this kind of relation, work stress obviously did not mediate the relation between compensation and job satisfaction. Retail organization still need to develop interesting compensation packages to keep the satisfaction level of the employee. If they want to help employee to manage the stress level, compensation is not the right solution. The effect of work stress against job satisfaction is relatively small, which mean organization need to combine compensation with other factors if they want to enhance job satisfaction.

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