Sharia Economic and Management Business Journal (SEMBJ)
Vol. 7 No. 1 (2026): February

Balancing Pay and Life: How Compensation and Work-Life Balance Drive Employee Performance through Job Satisfaction

Agung Sasmito Utomo (Universitas Diponegoro)
Mirwan Surya Perdhana (Universitas Diponegoro)
Khoiriyah Sari Pertiwi (Universitas Diponegoro)
Martinus Hendra Dewantara (Universitas Diponegoro)



Article Info

Publish Date
11 Jun 2026

Abstract

Background: Employee performance is essential for organizational success and can be influenced by compensation, work-life balance, and job satisfaction. Understanding the relationships among these factors is important for improving employee productivity and organizational outcomes. Method: This study involved 149 employees of CV. X as respondents. Data were collected using a Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS), including validity, reliability, and hypothesis testing. Results: The findings show that compensation, work-life balance, and job satisfaction have positive and significant effects on employee performance. In addition, job satisfaction significantly mediates the effects of compensation and work-life balance on employee performance. Conclusion: Compensation and work-life balance contribute to improved employee performance both directly and indirectly through job satisfaction. Enhancing employee satisfaction through fair compensation and a balanced work environment can help organizations achieve better performance outcomes.

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Journal Info

Abbrev

sembj

Publisher

Subject

Religion Agriculture, Biological Sciences & Forestry Computer Science & IT Economics, Econometrics & Finance Education Other

Description

SEMB-J, sharia economic and management business journal is peer-reviewed journal published by Yayasan Darussalam Bengkulu. SEMB-J focus on the research of sharia economic and management business. The aim of this journal is to explore and develop economic management related to islamic and business. ...