JOSR: Journal of Social
Research Februari 2022, 1 (3), 221-230
p-ISSN: 2827-9832
e-ISSN: 2828-335x
Available online at http:// https://ijsr.internationaljournallabs.com/index.php/ijsr
THE EFFECT OF EMPLOYEE ENGAGEMENT ON
EMPLOYEE PERFORMANCE WITH JOB
SATISFACTION AND COMPENSATION AS
MEDIATING ROLE
Abdul Aziez
Universal Institute of Professional Management
Email : aziez_abdul@yahoo.com.sg
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Abstrak
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Received: Revised : Accepted:
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March 2022
March 2022
March 2022
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Human resources or employees are the most important part of a company. Employee performance can
be defined as the size or level of how much
employees can run the company
to achieve company
goals within a certain period.
Good employee performance
will become an increasing trend of a company.
Job satisfaction is employee satisfaction with the work that has been done at
the company. Based on the background, research related to the effect of employee engagement on employee performance with
job satisfaction and compensation
as mediating role is important because it can
become knowledge and management guidelines in the company. Employee satisfaction and compensation describes that the company cannot be separated from the existence of employees. Systematically, literature
review research was conducted to obtain accurate results related to "The Effect
of Employee Engagement on
Employee Performance with Job Satisfaction
and Compensation as Mediating Role". This research method
used is using
a qualitative approach and the type
of research is literature review. The analytical technique used in this research is using annotated bibliography. Based on the literature review from 13 source,
it can be concluded employee engagement has on job
satisfaction, compensation, employee performance as a mediating role.
Keywords: Employee, Employee engagement, Job
Satisfaction, Compensation, Employee Performance, Mediating Role
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*Correspondent Author : Abdul Aziez
Email : aziez_abdul@yahoo.com.sg
http://ijsr.internationaljournallabs.com/index.php/ijsr
INTRODUCTION
Employees are required to be part of the company in
carrying out company activities. This
means that employees have a role as controllers of company activities (Annalia, 2020).
In general, employees are divided into various member compositions based on the holder of a particular
position. Employees can be identified as divided into two, namely leaders and subordinates. Leaders must be able to
manage their subordinates to become
superior and productive employee performance. Good employee performance will become an increasing trend of a
company. Cooperation and responsibility in the
company's organizational structure
in the building and developing the company, employees can demonstrate their
abilities so as to produce
employees who have quality,
quantity, and meet mutually agreed standards (Maulyan,
2019; Rusniati & Haq,
2014; Suryani et al., 2021). Job satisfaction is employee satisfaction with the work
that has been done at the company.
Employees who feel satisfied at work will provide maximum feedback to improve
employee performance. Research
related to the effect of employee engagement on employee performance with job satisfaction and compensation as mediating roles is important because it can become knowledge
and management guidelines in the company. Employee
satisfaction and compensation describe that the company cannot be separated from the existence
of employees. Systematically, literature review research
was conducted to obtain accurate results related to
"The Effect of Employee Engagement on Employee Performance with Job Satisfaction and Compensation as Mediating
Role".
Employee Engagement
Employee engagement is one of the conditions that can describe
employee involvement in achieving optimal
performance. Employee engagement can have an impact on improving performance and can provide
financial support for a company. The level of
employee commitment can be seen from the length of service or work
resistance in the company. Involved
employees tend to do more hard work, but are more
loyal to the company and have a
positive influence on organizational success (Ali & Ali, 2011). The attitude of employees forms the
strengthening of mutual involvement in the affairs of the company.
This basis makes employees loyal
and provides the ability to carry out company activities in accordance with certain work structures or arrangements. Employee
engagement can also be said as a supporter in carrying out
responsibilities at work. Thus, the incorporation of positive aspects can build a company's success.
Employee Performance
Performance is the behavior
of how the quality, quantity, and targets are successfully achieved. Employees who have good
performance by improving their ability to be able to perform better. Performance is strongly influenced by several
factors, as follows (Djibran, 2017):
a.
Effort: Effort is the result of
motivation which shows the amount of energy (physical
and mental) a person uses in carrying out his duties and responsibilities in improving his work performance. From
the success achieved, they get an assessment
of the results of their work. The quantity and quality of work are the results of work given to employees both in quantity and maximum quality.
b.
Ability: ability is a person's criteria
used in carrying
out a job. Generally, abilities do not change much in a relatively
short time.
c.
Task perception: This indicates
the direction in which a person understands where they should channel their efforts for the purposes
of their job. One's activity and
attitude of trust are also needed in carrying
out work that is in accordance with the perception of their respective
roles/tasks. This is because responsibility for tasks and work systems is important in an assignment, employee
appreciation for the tasks given must be reflected in the personality of each employee
so that the given task is understood as personal responsibility for the implementation of the assigned
task.
d.
Employee performance at the
company that can be described above is seen that the results of the work show the quality, quantity,
and work standards
of employees in the company.
Employees show their ability to work. Knowledge
and skills, creativity, and
innovation can be a form that must exist in employees. A successful company can be seen from the achievements or good results
of employees. The company's
success in achieving its goals can be seen by looking at employee performance.
Job Satisfaction
Job satisfaction shows the
suitability of a person's expectations for something with what is accepted so that the level of job
satisfaction of individual employees is different. Employee job satisfaction can arise because of the situation and
work environment within the company.
Job satisfaction reflects a person's feelings towards his job. Job satisfaction in the company is very important to be
remembered by company holders. Job satisfaction can be welfare
for employees in the demands
of employee rights.
In this case, the employee
should have fulfilled
the responsibilities that have been
carried out in the company.
Employees who work in accordance with the provisions and get
achievements are very unbalanced if
they do not receive what they want which can lead to indicators of job satisfaction in employees. It should be noted that employees really need satisfaction in their workplace, all energy, and thoughts are
dedicated to their work so that the company can become better and achieve success (Ijigu, 2015).
Compensation
Compensation is an award that is intended for
employees to work. Compensation in a
theory stated that employees need financial for themselves and their families.
Refers to the basic theory that
humans have the right to prosper. Welfare is one of which is being able to support the family and be able to
meet their needs. Compensation means a lot to
employees and is highly anticipated because
of the financial goals. Providing compensation to
employees also has a purpose namely, to ensure a source of income for employees
and their families, improve work
performance, increase employee self-esteem. Compensation is very important for employees because the size of the
compensation provided by the company
reflects the performance produced by the employee. compensation is a form of giving such as salaries, incentives,
bonuses, remuneration, and others. Compensation is given as a sign that the company
provides wages for work. Generally, the more performance and loyalty in working in the
workplace, the employees will experience an increase in salary or something else.
Mangkunegara (2014:85-86) explained the form of compensation into two, as follows:
Wages and salaries
are payments in the form of money for work services or money which is usually paid to employees on an
hourly, daily, and half-day basis. While salary is money paid to employees for services provided
monthly. Benefits and services are a direct
financial (monetary) value for employees
that can be determined quickly.
Meanwhile,
service is a direct financial (monetary)
value for employees
that cannot be easily determined.
METHODS
This research aims to review the literature related to
"the effect of employee engagement on employee performance with job satisfaction and compensation as mediating
role". Thus, the research method used is using a qualitative approach and
the type of research is a literature review.
The most important thing in
conducting a literature review is to determine the literature to be reviewed according to the research
topic.
Figure 3.1 Plan of Literature Review Source: Prepared by the Author, 2022
The literature review
literature source must pay attention
to a good reputation. This
literature review research can be
detailed in the list of data sources as follows.
Table 3.1 List of Literature Review
Source: Prepared by the author,
2022
The analytical technique
used in this research is using annotated bibliography. The UCSC Universitas Library (2013), is
annotated which means a simple conclusion from an article, book,
journal, and other scientific writings, while a bibliography is a list of
bibliographic sources.
RESULT AND DISCUSSION
The results of the research
and the discussion in this subsection provide
a literature review
as well as the research
objectives.
Employee Engagement to Job Satisfaction
The process of employees getting job satisfaction can
be seen by how much the company provides
facilities or work support in the company.
This process can be explained that the needs of employees being met in the workplace. Work needs are very important
to facilitate the work
of employees.
Figure 4.1 The process
of employees getting job satisfaction
Employees are generally required to be on target
in working in accordance with the job description at the beginning of
starting a work contract. Employees who can quickly overcome all problems
in their work are employees who have the agility to overcome them. Employees
do not get pressure but will provide cooling and solutions if everything can be centralized.
Figure 4.2 Employee
Engagement as Central
Employee engagement as a center
can be explained that all matters regarding
work activities in an
organization can be carried out without depending on the work of one employee.
Employee engagement can make employees
feel satisfied. Employee
engagement is an activity that is just natural due to the need for cooperation and assistance from other people to provide
solutions to organizational company work problems.
Satisfaction can be seen from the difference in employee feelings, if
there is no difference then it cannot
be declared that the employee is satisfied. Employee
engagement can be done and has
an influence on job satisfaction which can be described as follows:
Figure 4.3 Relationship of Employee Engagement to Job Satisfaction
It can be interpreted that the position of employee
engagement can affect Job Satisfaction.
Employees have the flexibility, rewards, opportunities, and support from superiors
in doing their work. Heavy work will be light on employee
engagement. Employee engagement can make employees feel satisfied.
Employee Engagement on Compensation
Compensation is one of the factors in building
motivated employees. In addition, due
to employee compensation, such as being given rewards for their work
achievements. This indicates that
there has been employee engagement. Ganyang &
Lestari (2013) provide the concept of
compensation. It can be reviewed that compensation can be said to be giving money which is usually called
wages. Employees basically work in certain companies,
namely, the goal is to earn money to support families and individuals. On the other hand, companies that carry out
activities for profit also really need employees. As a form of gratitude
for the organization's company for its employees, compensation is a must for
companies to pay their workers. From the concept point of view, it can be
described as follows:
Figure 4.4 Relationship between employees and the company
At first glance, it appears that such a situation is
like the north and south magnetic poles
attracting each other. This level also illustrates that there is a strong bond
between the company and its
employees. The more the company cares, the more employees will care. On the other hand, if the company is
indifferent, employees will feel alienated and
feel like they are not
motivated to work.
Figure 4.5 The Cycle of Corporate Justice
The cycle of corporate justice is interrelated with
the above aspects. Employees have
their respective roles in the company. Employees can be assessed directly by
their superiors in their work. This
is a step for employee engagement that intersects between superiors and subordinates. Employee
engagement can prevent fraud or deviation from
superiors. The provision of compensation can be assessed.
Fairness and impropriety can be carried
out as an evaluation of
superiors in processing compensation figures.
Employee Engagement to Employee Performance
The company organization really wants employee
performance to be done well. Employee
performance which
can be called employee performance is an important element in the company. Employees
need to be managed for the effectiveness of a human resource. The factors that encourage employees to
have employee engagement with their company are as follows:
1.
Employees feel needed by the company.
The company provides
the same responsibilities with each of the jobs it
carries out. Employees also mean those who
are part of the company. Employees with the company feel that respect and have a relationship will be a family that
can communicate with each other and provides reviews
or dedication. Employee
contributions are needed by the company, this involvement can be reciprocated with compensation so that employees feel that the work they have
done so far is not in vain. Employees become
satisfied if their desires are achieved nothing other than compensation This will grow and develop employees with
the company synergizing to closely with
each other and running company activities, then the desired company goals can be achieved.
2.
Employees want maturity in the
career they are living. If the work is passed, the presence of employee engagement can make employees feel at home
and highly dedicated. The company
should provide opportunities for employees in career development.
3.
The high relationship between
the company and its employees
will have an effect of employee engagement which can affect
employee performance. The close relationship between superiors and subordinates is indeed not good, but for the
sake of the company's goals, they have closeness in the sense that
they cannot be separated from work problems
in realizing each other's
performance.
4.
Employees align the right
strategy in the company's development efforts. On the other hand, companies can be tricked into getting involved in
the company's strategic efforts. In
addition, introducing and synergizing by forming a team. Employees who are experiencing difficulties need to be helped
and need to be supported.
5.
Concern for employees needs to be packaged properly.
It can be done by providing
job challenges, as well as having the authority to make decisions as a factor
to encourage employee engagement.
6.
Robinson et al. (2004) state
that the driving factors for employee engagement are: involvement and having mutual respect, which can include
decision making. Employees can argue, provide
opportunities, and care for each other.
7.
Communication needs
to be improved if the company wants a good climate. The existence
of employee communication is certainly involved in the development of the company.
Communication is very important for the realization of important
information that may not have existed before or already exists can be conveyed
and is important news for the
progress of the company.
8.
Employee engagement said that
his position was an outcome of employee personal characteristics such as knowledge, skills, abilities, temperament, attitude, and personality and organizational context
such as leadership, physical workplace settings,
social settings at work, and implementation of human resource management. This directly
affects people, processes, and performance contexts
9.
Compensation can make employees
happy. This can give a sign that the existence of compensation can encourage attraction between the company
and employees as well as work and
co-workers. Of course, in providing compensation or wages it is
necessary to make the right adjustments.
Employee Engagement to Employee Performance through
Job Satisfaction
Employee engagement is more complex in measuring the
work experience of employees. the
existence of an organizational company is solely for the benefit of the organization, namely, to achieve organizational goals.
Figure 4.6 Stairs of Management Functions (Stages) (Source:
processed by the researcher, 2022)
The planning function is the initial activity before
the implementation is carried out. A well-thought-out plan can direct an organization to achieve its goals. The implementation
of all management functions can be more efficient and effective in the success of the organization, namely by
increasing employee engagement. On the other
hand, employees who are dissatisfied with their work usually
argue that the compensation
given is not in accordance
with their workload,
especially in terms of finances
or wages given.
Figure 4.7 Conceptual Model of Job Satisfaction
The picture above can be explained that the
characteristics of the work must be in accordance
with the compensation given. Inappropriate compensation results in employee dissatisfaction in doing their work. On
the other hand, if the compensation can go hand in hand with the load or job characteristics, the employees will be
satisfied in their job. Satisfied
employees can give positive behavior and of course, can suppress the success of the company.
Factors that can increase job satisfaction can be seen
from: (1) achievement, (2) recognition
of achievement, (3) challenging work, (4) increased responsibility, and (5) growth and
development.
Job satisfaction is employee satisfaction with the
work that has been done at the company. Employees
who are satisfied with their work will provide maximum
feedback to improve employee performance. Thus,
employees are more engaged in carrying out their work. One of the supporting employees to feel satisfied is
compensation. Compensation is a
reward for employees at a particular workplace or company. All forms of
additional reward compensation, the increasing sense of satisfaction, and improving employee
performance. The data obtained that satisfaction influences employee
performance by 45.6%, while
compensation influences employee performance by 40.2% (Hardiyana
& Nurhadian, 2016). Employee engagement can be increased
by using the process of satisfying
employees and providing compensation. The employees are sufficient and there are no pressure problems for the work
they are doing. Thus, the work carried out can be maximized and can form a good employee performance. Employees
provide a high and positive engagement as a result
of satisfaction and appropriate compensation and will show the success
of employees in the organization.
CONCLUSION
Based on the literature review, it can be concluded as follows:
1)
Employee engagement has an
influence on job satisfaction. The concept is that employee engagement can make employees feel that they are not
alone and not burdensome, so employee
engagement can eradicate difficult work problems. Employees get flexibility, opportunities, and knowledge and can
control their emotions with high
employee engagement;
2)
Employee engagement has an influence on compensation. The existence of employee
engagement, managers can evaluate every job of employees. Due to the closeness of employee engagement between employees and the company,
compensation can be controlled according to the composition of the
employee's work;
3)
Employee engagement has an influence on employee performance. The concept is that the higher the employee engagement, the more aggressive, punctual employees, increased
motivation, measurable quality,
and productivity. Employee
engagement can make employees more responsive, stay, and involved, so
that employee performance is getting
better and easier
for employees to control.
4)
Employee engagement has an influence on employee performance with job satisfaction and compensation as mediating
role. High employee engagement can create
better employee performance. Employee engagement can make employees satisfied, usually, compensation is given
by employees who are more enthusiastic in showing
their performance.
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