Reward Systems Outweigh Career Development in Public Utility Employee Job Satisfaction

General Background: Employee job satisfaction is essential to human resource management and organizational performance. Specific Background: Declining satisfaction levels highlight concerns regarding career opportunities, compensation, and benefits in public service organizations. Knowledge Gap: Inconsistent findings regarding career development and job satisfaction require further empirical investigation. Aims: This study examines the relationships between career development, reward systems, and employee job satisfaction using a quantitative approach involving 126 permanent employees. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results: Career development showed a significant positive relationship with job satisfaction (β = 0.326; p = 0.002), while reward systems demonstrated a stronger relationship (β = 0.507; p < 0.001). Both variables explained 62.5% of the variance in job satisfaction (R² = 0.625). Novelty: The study provides comparative empirical evidence demonstrating the stronger contribution of reward systems relative to career development in public service organizations. Implications: Transparent performance-based rewards and equitable career advancement opportunities are essential considerations for supporting employee job satisfaction. Highlights: Professional advancement demonstrated a significant positive coefficient (β = 0.326). Compensation and recognition mechanisms recorded a larger coefficient (β = 0.507). The structural model explained 62.5% of the outcome variance. Keywords: Career Development, Reward System, Job Satisfaction

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Publication Details

Journal
Indonesian Journal of Law and Economics Review
Published
2026-10-29
DOI
https://doi.org/10.21070/ijler.v21i4.1646
Primary Topic
Employee Performance and Management
Type
article
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article

Reward Systems Outweigh Career Development in Public Utility Employee Job Satisfaction

Ika Korika Swasti, Anisah Isnaini
Indonesian Journal of Law and Economics Review
Employee Performance and Management
article

Reward Systems Outweigh Career Development in Public Utility Employee Job Satisfaction

Ika Korika Swasti, Anisah Isnaini
article en

Abstract

General Background: Employee job satisfaction is essential to human resource management and organizational performance. Specific Background: Declining satisfaction levels highlight concerns regarding career opportunities, compensation, and benefits in public service organizations. Knowledge Gap: Inconsistent findings regarding career development and job satisfaction require further empirical investigation. Aims: This study examines the relationships between career development, reward systems, and employee job satisfaction using a quantitative approach involving 126 permanent employees. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results: Career development showed a significant positive relationship with job satisfaction (β = 0.326; p = 0.002), while reward systems demonstrated a stronger relationship (β = 0.507; p < 0.001). Both variables explained 62.5% of the variance in job satisfaction (R² = 0.625). Novelty: The study provides comparative empirical evidence demonstrating the stronger contribution of reward systems relative to career development in public service organizations. Implications: Transparent performance-based rewards and equitable career advancement opportunities are essential considerations for supporting employee job satisfaction. Highlights: Professional advancement demonstrated a significant positive coefficient (β = 0.326). Compensation and recognition mechanisms recorded a larger coefficient (β = 0.507). The structural model explained 62.5% of the outcome variance. Keywords: Career Development, Reward System, Job Satisfaction

Indonesian Journal of Law and Economics ReviewVol. 21(4)
Openalex Percentile: Top 2%
Employee Performance and Management
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