The Effect of Compensation and Motivation on Employee Job Satisfaction at PT Chandra Mitra Abadi
Keywords:
Compensation, Employee Job Satisfaction, Human Resource Management, Motivation, Reward System.Abstract
This study aims to analyze the effects of compensation and work motivation on employee job satisfaction at PT Chandra Mitra Abadi. A quantitative descriptive-correlational design was applied using a saturated sample of 50 employees. Primary data were collected through a five-point Likert-scale questionnaire measuring compensation, work motivation, and job satisfaction. Compensation was assessed through wages and salaries, incentives, and benefits, while work motivation covered achievement, affiliation, and power needs. Data were analyzed using Pearson Product Moment validity testing, Cronbach’s Alpha reliability testing, Spearman Rank correlation, and partial t-tests with SPSS 20. The results show that compensation has a positive, significant, and very strong relationship with job satisfaction (rs = 0.849; Sig. = 0.000; t = 9.625 > 2.021), supporting H1. Work motivation also has a positive, significant, and very strong relationship with job satisfaction (rs = 0.978; Sig. = 0.000; t = 32.584 > 2.021), supporting H2. Work motivation demonstrates a stronger relationship with job satisfaction than compensation. These findings indicate that employee satisfaction is closely associated with both financial rewards and motivational conditions. PT Chandra Mitra Abadi should maintain adequate compensation, improve incentive arrangements, and strengthen recognition, employee development, workplace relationships, and career opportunities.
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