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The Relationship Between Compensation and Job Satisfaction
Corresponding Author(s) : Shazaitul Rodzalan
Proceedings Universitas Muhammadiyah Yogyakarta Undergraduate Conference,
Vol. 2 No. 1 (2022): Strengthening Youth Potentials for Sustainable Innovation
Abstract
The intensifying economic competition makes every organization strive to increase its competitiveness in order to sustain in business environment. The success of an organization depends on the job satisfaction of the employees in the organization. However, job dissatisfaction occurs due to the salary received. Therefore, compensation is considered as something that can make employees satisfied with their jobs. This study aims to identify the level of compensation as well as the level of job satisfaction among manufacturing employees. In addition, this study also aims to identify the relationship between compensation and job satisfaction. Quantitative methods using questionnaires was used in this study. Primary data was distributed to a total sample of 375 employees in manufacturing companies in Johor Bahru. SPSS software was used to analyze the respondents' data. The results showed that the compensation that manufacturing employees received satisfied them. This study supports the hypothesis that there is a positive relationship between compensation and job satisfaction among manufacturing employees. This study benefits employees; if salaries are paid appropriately, employees will continue to meet the next level of need. This study can also help employers to improve compensation strategies in accordance with employee satisfaction. In addition, the government should plan a compensation package as employees play an important role in driving the Malaysian economy.
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- Brahmannanda, S., & Dewi, I. M. (2020). Work insecurity and compensation on turnover intention mediated by the job satisfaction of employees. International research journal of management, IT and social sciences, 7(5), 89-98.
- Fajarto, S. P., Aima, M. H., & Karsono, B. (2019). The Effect of Compensation and Job Satisfaction on Increasing Productivity of Asuransi Jasindo Head Office Employees Mediated by Motivation Variable. International Journal of Innovative Science and Research Technology, 4(7), 100-113
References
Brahmannanda, S., & Dewi, I. M. (2020). Work insecurity and compensation on turnover intention mediated by the job satisfaction of employees. International research journal of management, IT and social sciences, 7(5), 89-98.
Fajarto, S. P., Aima, M. H., & Karsono, B. (2019). The Effect of Compensation and Job Satisfaction on Increasing Productivity of Asuransi Jasindo Head Office Employees Mediated by Motivation Variable. International Journal of Innovative Science and Research Technology, 4(7), 100-113