Optimizing Employee Job Satisfaction through Organizational Commitment

Abstract

This study aims to analyze the effect of compensation and work environment on employee job satisfaction with organizational commitment as an intervening variable at the Representative Office of Bank Indonesia Pematangsiantar. The research uses a quantitative approach with Structural Equation Modeling (SEM) analysis based on SmartPLS 3.0. The research sample consists of all employees at the Representative Office of Bank Indonesia Pematangsiantar, selected using purposive sampling. The results show that organizational commitment has a positive and significant effect on job satisfaction, while compensation does not have a direct significant effect on employee job satisfaction. In addition, compensation and work environment have a positive and significant effect on organizational commitment. The work environment also has a positive and significant effect on job satisfaction. However, organizational commitment does not significantly mediate the effect of compensation or work environment on job satisfaction. This study suggests that management should focus on enhancing organizational commitment and creating a supportive work environment to improve employee job satisfaction, while still providing fair compensation to strengthen employee attachment to the organization.