An Analysis of the Effect of Compensation and Job Promotion on Employee Performance Job Satisfaction as a Mediator at Artotel Suites Mangkuluhur Jakarta, Indonesia

ABSTRACT : This study aims to analyze the effect of job compensation and job promotion on employee performance with job satisfaction as a mediating variable at Artotel Suites Mangkuluhur Jakarta. The approach used is quantitative with an explanatory research design, where data were collected through questionnaires distributed to 140 employees. Data testing was conducted using SEM-PLS analysis to examine the relationship between variables. The results of the study indicate that compensation and job promotion have a significant effect on job satisfaction, which in turn has a significant effect on employee performance. However, the direct effect of compensation on employee performance is not significant, as is the direct effect of job promotion on performance. Furthermore, the results of the indirect effect test indicate that job satisfaction mediates the relationship between compensation and employee performance, as well as between job promotion and employee performance. This study concludes that job satisfaction is an important factor in improving employee performance, and job stability and promotion have a significant impact through mediating job satisfaction. Therefore, companies are advised to focus on improving employee job satisfaction as a strategic effort to improve employee performance and retention.