The Relationship between Employee Satisfaction and Employee Performance mediated by Employee Engagement

https://doi.org/10.56225/finbe.v1i3.120

Authors

  • Ihda Fithriyana Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia
  • Siti Maria Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia
  • Tetra Hidayati Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia

Keywords:

employee satisfaction, employee engagement, employee performance

Abstract

Countries all over the world are encouraged to improve the performance quality of their human resources as a result of the globalization era’s growing level of competitive competition. Performance and employee satisfaction are closely related, whereas high employee satisfaction typically leading to improve employee performance and a sense of engagement to the organization. This research aims to study and analyze the influence of employee satisfaction in employee engagement towards employee performance. Using certain criteria, 110 employees of PT. IDS Medical Systems Indonesia were selected as the sample. The technique used to collect data from the respondents is questionnaires. Further, analysis model used is Structural Equation Model (SEM) with the basis of theory and concept with Smart-PLS software. This study found that employee satisfaction has direct significant effect on employee engagement and has a direct and significant effect on employee performance.

Downloads

Download data is not yet available.

References

Achieng Otieno, B. B., Waiganjo, E. W., & Njeru, A. (2015). Effect of Employee Engagement on Organisation Performance in Kenya’s Horticultural Sector. International Journal of Business Administration, 6(2), 77. https://doi.org/10.5430/ijba.v6n2p77

Akdol, B., & Arikboga, F. S. (2015). The Effects of Leader Behavior on Job Satisfaction: A Research on Technology Fast50 Turkey Companies. Procedia - Social and Behavioral Sciences, 195, 278–282. https://doi.org/10.1016/j.sbspro.2015.06.159

Arifin, Z., Yafiz Syam, A., & Maladi, M. (2013). The Models of Human Resource Development in Preparing Prisoners for Entrepreneurship in Banjarmasin. Asia Pacific Management and Business Application, 2(2), 84–97. https://doi.org/10.21776/ub.apmba.2013.002.02.1

Badriyah, N., Sari, R. N., & Basri, Y. M. (2015). The Effect of Corporate Governance and Firm Characteristics on Firm Performance and Risk Management as an Intervening Variable. Procedia Economics and Finance, 31, 868–875. https://doi.org/10.1016/S2212-5671(15)01184-3

Chowdhury, A. S., Mahamud, A. H., Nur, K., & Haque, H. M. Z. (2020). Predicting Behavior Trends among Students Based on Personality Traits. Proceedings of the International Conference on Computing Advancements, 1–5. https://doi.org/10.1145/3377049.3377068

Darmon, R. Y. (2011). Processes underlying the development and evolution of salespersonsõ job satisfaction/dissatisfaction: a conceptual framework. Canadian Journal of Administrative Sciences / Revue Canadienne Des Sciences de l’Administration, 28(4), 388–401. https://doi.org/10.1002/cjas.190

Dessler, G., & Varrkey, B. (2005). Human Resource Management, 15e. Pearson Education India.

Eliyana, A., Ma’arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144–150. https://doi.org/10.1016/j.iedeen.2019.05.001

Handoyo, A. W. (2017). Pengaruh Employee Engagement Terhadap Kinerja Karyawan Pada PT. Tirta Rejeki Dewata. Agora, 5(1).

J., A. (2014). Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management, 63(3), 308–323. https://doi.org/10.1108/IJPPM-01-2013-0008

Karadağ, E., Çiftçi, K., & Bektaş, F. (2015). Leadership and Organizational Outcomes. In E. Karadağ (Ed.), Meta-analysis of empirical studies. sl: Springer-Verlag. Springer International Publishing. https://doi.org/10.1007/978-3-319-14908-0

Khusniah, K., Subiyanto, D., & Septyarini, E. (2022). Analysis of the Effect of Employee Engagement, Perceived Organizational Support, and Motivation on Employee Performance Study at PT. Dino Jaya Karya. Reslaj : Religion Education Social Laa Roiba Journal, 4(3), 447–460. https://doi.org/10.47467/reslaj.v4i3.789

Lee, Y.-S., & Liu, W.-K. (2021). The Moderating Effects of Employee Benefits and Job Burnout among the Employee Loyalty, Corporate Culture and Employee Turnover. Universal Journal of Management, 9(2), 62–69. https://doi.org/10.13189/ujm.2021.090205

Oyewunmi, O. A., Osibanjo, O. A., Falola, H. O., & Olujobi, O. J. (2017). Optimization by Integration: A corporate governance and human resource management dimension. International Review of Management and Marketing, 7(1), 265–272.

Permana, A., Aima, M. H., Ariyanto, E., Nurmahdi, A., Sutawidjaya, A. H., & Endri, E. (2021). The effect of compensation and career development on lecturer job satisfaction. Accounting, 7(6), 1287–1292. https://doi.org/10.5267/j.ac.2021.4.011

Platis, C., Reklitis, P., & Zimeras, S. (2015). Relation between Job Satisfaction and Job Performance in Healthcare Services. Procedia - Social and Behavioral Sciences, 175, 480–487. https://doi.org/10.1016/j.sbspro.2015.01.1226

Pradhan, R. K., & Jena, L. K. (2017). Employee Performance at Workplace: Conceptual Model and Empirical Validation. Business Perspectives and Research, 5(1), 69–85. https://doi.org/10.1177/2278533716671630

Priyadarshni, N. (2016). To study the impact of employee engagement on employee productivity and motivational level of employee in retail sector. IOSR Journal of Business and Management (IOSR-JBM), 41–47.

Puri Palupi, D. A., & Patmo Cahjono, M. (2017). Effect of leadership on the job satisfaction with organizational commitment and trust in leader as mediators. Review of Integrative Business and Economics Research, 6(4), 317–326.

Robbins, S. P., Judge, T. A., & Vohra, N. (2013). Organizational behavior. pearson.

Selvarajan, T. T., Singh, B., & Solansky, S. (2018). Performance appraisal fairness, leader member exchange and motivation to improve performance: A study of US and Mexican employees. Journal of Business Research, 85, 142–154. https://doi.org/10.1016/j.jbusres.2017.11.043

Serra, F. A. R., Pinto, R., Guerrazzi, L., & Ferreira, M. P. (2017). Organizational Decline Research Review: Challenges and Issues for a Future Research Agenda. BAR - Brazilian Administration Review, 14(2). https://doi.org/10.1590/1807-7692bar2017160110

Srivastava, S., & Madan, P. (2016). Understanding the Roles of Organizational Identification, Trust and Corporate Ethical Values in Employee Engagement–Organizational Citizenship Behaviour Relationship: A Study on Indian Managers. Management and Labour Studies, 41(4), 314–330. https://doi.org/10.1177/0258042X16676675

Suker, I. K., Bir, C. S., Engin, E., & Akgoz, B. E. (2016). Employee satisfaction: Communication competence and leadership oriented approach. International Journal of Innovative Research & Development, 5(5), 194–202.

Tabarsa, G., & Nazari, A. J. (2016). Examining the Moderating Role of Mentoring Relationship in between Content Plateauing with Job Satisfaction and Willingness to Leave the Organization (Case Study: Iran Ministry of Industry, Mines and Trade). Indian Journal of Science and Technology, 9(7), 1–8. https://doi.org/10.17485/ijst/2016/v9i7/87858

Tnay, E., Othman, A. E. A., Siong, H. C., & Lim, S. L. O. (2013). The Influences of Job Satisfaction and Organizational Commitment on Turnover Intention. Procedia - Social and Behavioral Sciences, 97, 201–208. https://doi.org/10.1016/j.sbspro.2013.10.223

Vizano, N. A., Sutawidjaya, A. H., & Endri, E. (2021). The Effect of Compensation and Career on Turnover Intention: Evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(1), 471–478. https://doi.org/https://doi.

Werner, J. M. (2021). Human resource development: talent development. Cengage Learning.

Zahrah, N., Hamid, S. N. B. A., Rani, S. H. B. A., & Kamil, B. A. B. M. (2017). The Mediating Effect of Work Engagement on The Relationship Between Islamic Religiosity and Job Performance. Global Business & Management Research, 9(1), 271–280.

Downloads

Published

2022-12-31

How to Cite

Fithriyana, I., Maria, S., & Hidayati, T. (2022). The Relationship between Employee Satisfaction and Employee Performance mediated by Employee Engagement. Frontiers in Business and Economics, 1(3), 147–153. https://doi.org/10.56225/finbe.v1i3.120