The Role of Compensation as a Determinant of Employee Performance and Employee Job Satisfaction: A Study in PT Bank Rakyat Indonesia (Persero) Tbk.

Abstract

This paper conducts a more in-depth study of employee performance to connect with compensation and job satisfaction and the work environment of employees in PT Bank Rakyat Indonesia (Persero) Tbk. (BRI). This research was conducted at PT Bank Rakyat Indonesia (Persero) Tbk. operating in Indonesia. The research population was all employees of the Branch Offices of PT Bank Rakyat Indonesia (Persero) Tbk. spread over in Sumatera, Jawa, Kalimantan, Sulawesi, Bali and Jayapura. The sample was collected using Proportional Random Sampling Stratified from six locations spread throughout Indonesia. Considering the wide area, the sampling technique is adjusted to the area, so sampling is based on the island as a sub-population. The sample of this study was 212 employees. This amount has met the minimum sampling requirements if using the Generalised Structural Component Analysis (GSCA) method. Compensation does not directly affect employee performance. Working environment directly influences the employee performance in PT Bank Rakyat Indonesia (Persero) Tbk. There is an influence of compensation and working environment on job satisfaction and employee performance in PT Bank Rakyat Indonesia (Persero) Tbk. The leader of PT Bank Rakyat Indonesia (Persero) Tbk. should improve employees’ performance by taking into account the improvement of compensation which includes the suitability of wages and salaries, incentives, benefits and facilities with their performance.

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