This study aims to analyze the impact of compensation and job competence on employee performance with job satisfaction as a mediating variable at the National Zakat Agency, Indonesian Zakat Initiative. Compensation and job competence are positioned as independent variables, employee performance as a dependent variable, and job satisfaction as a mediating variable. The research applies an associative quantitative approach. Data was collected using a questionnaire administered to 140 workers and analyzed using the SmartPLS SEM method. The results of the analysis show that compensation and job competency have a positive and significant impact on job satisfaction, with coefficients of 0.521 and 0.534, respectively. In addition, compensation and job competency also have a positive and significant impact on employee performance with coefficients of 0.201 and 0.169. Job satisfaction has been proven to have the strongest impact on employee performance with a coefficient of 0.626. Testing for indirect effects confirmed that job satisfaction mediates the connection between compensation and employee performance as well as between job competence and employee performance. These results show that fair compensation and increased job competence play a crucial role in fostering job satisfaction and employee performance. The contribution of this study is to provide insights for organizations to improve employee performance by focusing on fair compensation, work competency development, and increased job satisfaction.
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