Strategic Human Resource Management Practices
Keywords:
Competence, Compensation, Job Satisfaction, Employee PerformanceAbstract
This study aims to analyze the effect of competence and compensation on employee performance with job satisfaction as an intervening variable at PLN UP2D North Sumatra. This research employed a quantitative approach using a survey method. The population consisted of all employees of PLN UP2D North Sumatra, with a total sample of 117 employees, selected using a saturated sampling technique. Data were collected through questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS software. The results indicate that competence and compensation have a positive and significant effect on job satisfaction, and competence, compensation, and job satisfaction have a positive and significant effect on employee performance. Furthermore, job satisfaction was proven to mediate the effect of competence and compensation on employee performance. These findings suggest that improving employee competence and implementing a fair compensation system, accompanied by efforts to enhance job satisfaction, can effectively improve employee performance. This study is expected to contribute to the development of human resource management theory and provide practical insights for PLN management in enhancing employee performance.
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