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All Journal Equivalent : Journal of Economic, Accounting and Management
M. Isa Indrawan
Universitas Pembangunan Panca Budi, Medan, North Sumatra
Economics, Econometrics & Finance

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The Effect Of Compensation and Work Environment On Employee Job Satisfaction with Organizational Commitment as an Intervening Variable at The  Bank Indonesia Pematang Siantar  Representative Office Gomgom S. G. Sirait; M. Isa Indrawan; Kiki Farida Ferine
Equivalent : Journal of Economic, Accounting and Management Vol. 4 No. 2 (2026): Equivalent : Journal of Economic, Accounting and Management
Publisher : CV. Doki Course and Training

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61994/equivalent.v4i2.1898

Abstract

This study aims to analyze how compensation and work environment influence employee job satisfaction, with organizational commitment acting as a mediating factor at the Bank Indonesia Representative Office in Pematangsiantar. A quantitative method was employed, employing Structural Equation Modeling (SEM) analysis using SmartPLS 3.0 software. The sample for this study consisted of all employees at the Bank Indonesia Representative Office in Pematangsiantar, selected through purposive sampling. The results indicate that organizational commitment has a positive and significant impact on employee job satisfaction, while compensation does not have a significant direct effect on job satisfaction. Furthermore, both compensation and work environment exhibit positive and significant impacts on organizational commitment. The work environment also has a positive and significant impact on employee job satisfaction. However, organizational commitment does not effectively mediate the relationship between compensation or work environment and job satisfaction. Considering these findings, it is recommended that management focus on enhancing organizational commitment and fostering a pleasant and supportive work environment to enhance employee job satisfaction, while providing fair compensation to strengthen employee bonds with the organization.
Co-Authors Gomgom S. G. Sirait Kiki Farida Ferine