An Analysis of Employee Job Satisfaction through Transformational Leadership Style, Compensation, and Organizational Commitment

Job satisfaction is a psychological state that reflects the extent to which individuals feel satisfied with their jobs, which affects work enthusiasm, loyalty, and productivity. In a competitive work environment, understanding the factors that shape job satisfaction is important to drive organizational performance. This study aims to determine the effect of transformational leadership, compensation, and organizational commitment on employee job satisfaction at CV Bintang Parts Jaya Sentosa in Jambi. This study is based on the Social Exchange Theory framework, which explains that the reciprocal relationship between organizations and employees affects work attitudes, including job satisfaction. The method used is a quantitative approach with a causality design, and data analysis was carried out using Partial Least Square–Structural Equation Modeling (PLS- SEM) on 72 permanent employees who have worked for at least six months. The results of the study indicate that transformational leadership, compensation, and organizational commitment have a positive and significant effect on employee job satisfaction. These findings confirm that to improve job satisfaction, companies need to implement inspirational leadership, develop a fair compensation system, and build strong organizational commitment. This study provides theoretical contributions to the human resource management literature and practical implications for the development of organizational strategies.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-07-30
DOI
https://doi.org/10.5281/zenodo.16598990
Primary Topic
Employee Performance and Management
Type
article
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article

An Analysis of Employee Job Satisfaction through Transformational Leadership Style, Compensation, and Organizational Commitment

Zenodo (CERN European Organization for Nuclear Research)
Employee Performance and Management
article

An Analysis of Employee Job Satisfaction through Transformational Leadership Style, Compensation, and Organizational Commitment

article en

Abstract

Job satisfaction is a psychological state that reflects the extent to which individuals feel satisfied with their jobs, which affects work enthusiasm, loyalty, and productivity. In a competitive work environment, understanding the factors that shape job satisfaction is important to drive organizational performance. This study aims to determine the effect of transformational leadership, compensation, and organizational commitment on employee job satisfaction at CV Bintang Parts Jaya Sentosa in Jambi. This study is based on the Social Exchange Theory framework, which explains that the reciprocal relationship between organizations and employees affects work attitudes, including job satisfaction. The method used is a quantitative approach with a causality design, and data analysis was carried out using Partial Least Square–Structural Equation Modeling (PLS- SEM) on 72 permanent employees who have worked for at least six months. The results of the study indicate that transformational leadership, compensation, and organizational commitment have a positive and significant effect on employee job satisfaction. These findings confirm that to improve job satisfaction, companies need to implement inspirational leadership, develop a fair compensation system, and build strong organizational commitment. This study provides theoretical contributions to the human resource management literature and practical implications for the development of organizational strategies.

Zenodo (CERN European Organization for Nuclear Research)
Tarumanagara University (ID)
Decent work and economic growth
Openalex Percentile: Top 31%
Employee Performance and Management
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An Analysis of Employee Job Satisfaction through Transformational Leadership Style, Compensation, and Organizational Commitment · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS