effect of non-financial compensation on job satisfaction and its impact on employee performance at Baturaja University

Purpose: This study aimed to analyze the impact of non-financial compensation on job satisfaction and its effect on the performance of Baturaja University. Methods: This study employed a quantitative approach. Data were collected through a survey method by distributing questionnaires to 53 employees of Baturaja University as the research population. Path analysis was used to examine the direct and indirect relationships between independent, dependent, and mediating variables. The variables in this study are non-financial compensation, employee performance as the dependent variable, and job satisfaction as the mediating variable. Results: The analysis results show that non-financial compensation has a positive and significant effect on employee job satisfaction. Additionally, nonfinancial compensation has a positive and significant impact on employee performance. The path analysis indicates that job satisfaction mediates the effect of non-financial compensation on employee performance. Therefore, Baturaja University is expected to pay more attention to the nonfinancial aspects of compensation to enhance employee satisfaction and performance.