Cakrawala : Management Science Journal
Vol. 2 No. 3 (2025): Cakrawala: Management Science Journal - September

The Influence of Compensation on Job Satisfaction: A Literature Review from an Industrial Psychology Perspective

Ahmad Husnul Khotimah (Unknown)
Ajju Setyanto Tamsir (Unknown)
Al Miftah, Raditya Anugrah (Unknown)
Rupus, Rupus (Unknown)



Article Info

Publish Date
21 Aug 2025

Abstract

This study explores the relationship between compensation and job satisfaction from an Industrial Psychology perspective using a literature review method. Secondary data were drawn from scientific articles, academic papers, and research reports published between 2020 and 2025 in national and international journals. The analysis applied content analysis by identifying key variables, grouping findings, comparing results across sectors and regions, and synthesizing them based on the Equity Theory, Expectancy Theory, Herzberg’s Two-Factor Theory, and Social Exchange Theory. The review of seven studies shows that both financial compensation (salary, allowances, bonuses, incentives) and non-financial compensation (recognition, promotion opportunities, facilities) generally have a positive effect on job satisfaction. The extent of this effect varies according to contextual factors such as work environment, organizational culture, career development, and labor policies. Effective compensation policies should balance financial and non-financial rewards while aligning with employee expectations and organizational conditions. The study is limited by its reliance on secondary data and a restricted publication period.

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Journal Info

Abbrev

cakrawala

Publisher

Subject

Economics, Econometrics & Finance

Description

Cakrawala: Management Science Journal is a publication that contains scientific articles related to management science. This journal is used by researchers, academics, health practitioners, and students in accessing and sharing the latest knowledge and findings in the field of management science ...