PINISI Discretion Review
Volume 9, Issue 2, March 2026

The Effect of Green Compensation and Green Employee Involvement on Employee Job Satisfaction

Hendy Surahman (Pamulang University, Indonesia)
Muhammad Gandung (Pamulang University, Indonesia)



Article Info

Publish Date
31 Mar 2026

Abstract

This study examines the effects of green compensation and green employee involvement on employee job satisfaction at PT Sihono Samoedra Berlian Tbk. The research responds to the importance of green human resource management in supporting organizational sustainability and employee well-being. A quantitative descriptive design with a survey approach was employed. The population comprised employees, and a census sampling technique was used because the population was manageable. Data were collected through a questionnaire using a five-point Likert scale to measure green compensation, green employee involvement, and employee job satisfaction. The data were analyzed through validity and reliability tests, classical assumption tests, multiple linear regression, correlation analysis, the coefficient of determination, t-tests, and an F-test. The results show that green compensation has a positive and significant effect on employee job satisfaction. Environmentally oriented rewards, incentives, and compensation policies increase employees’ sense of appreciation and strengthen positive attitudes toward the company. Green employee involvement also has a positive and significant effect on job satisfaction. Employee participation in environmental programs, sustainability initiatives, and green decision-making increases motivation, engagement, and a sense of organizational belonging. Simultaneously, green compensation and green employee involvement significantly affect employee job satisfaction. These findings indicate that integrating environmental values into compensation systems and employee participation can improve satisfaction while supporting sustainability objectives. However, job satisfaction may also be influenced by other factors, including leadership style, organizational culture, work motivation, career development, and work-life balance. The study recommends strengthening reward mechanisms and providing opportunities for employees to participate in environmental programs.

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Journal Info

Abbrev

UDR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

PINISI Discretion Review is an-Opened Access journal and published twice a year every March and September. It publishes the research (no longer than 5 years after the draft proposed) in term of PINISI Discretion Review: public administration, public policy, management, bussiness administration, ...