Published date: Oct 10 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Entrepreneurship and Creative Economics

Pages: 73–92

DOI: 10.18502/kss.v9i28.17190

Agus Salimagussalimblitar1965@gmail.comUniversity of Merdeka Malang, Malang

Lilik KustianiUniversity of Merdeka Malang, Malang

Fajar SupantoUniversity of Merdeka Malang, Malang

This study aims to provide a comprehensive description of compensation, transformational leadership, job satisfaction, and employee performance. Additionally, it analyzes the impact of compensation and transformational leadership on job satisfaction and employee performance. Furthermore, it examines the influence of job satisfaction on employee performance. Lastly, it investigates the effect of compensation and transformational leadership on employee performance, mediated by job satisfaction. The study population consisted of all employees of BPR in Malang Raya, totaling 471 individuals. A sample size of 175 people was selected for the study. This study employs descriptive analysis and structural equation modeling (SEM) analysis. The study findings indicate that in terms of professional growth and interactions with supervisors, both monetary and non-monetary rewards contribute to employee satisfaction.Leadership characterized by idealized influence can foster employee happiness in professional growth and working relationships with superiors. Financial and non-financial compensation can create the quantity and quality of employee work. Leadership that has idealized influence can encourage the quantity and quality of employee work. Financial and non-financial compensation and leadership that has idealized influence, can build employee performance if it is encouraged through job satisfaction in professional development and satisfaction in implementing working relationships with superiors and co-workers. This research contributes to understanding leadership theory in different conditions and situations.

Keywords: job satisfaction, performance, compensation, leadership transformation

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