Education Level, Work Experience, and Employee Performance: The Mediating Role of Job Satisfaction

Abstract

This study examines the relationships between education level, work experience, and employee performance, with job satisfaction as an intervening variable, within the Goods and Services Procurement Division of the Bojonegoro Regency Secretariat, Indonesia. In the public sector context, improving employee performance is essential for ensuring effective delivery service, yet the direct influence of human capital factors remains inconclusive. This research adopts a quantitative approach using a census method, involving all 142 employees as respondents. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that education level and work experience do not have a significant direct effect on employee performance. However, both variables have a positive, significant effect on job satisfaction, which, in turn, significantly influences employee performance. Furthermore, mediation analysis indicates that job satisfaction fully mediates the relationship between education level and employee performance, as well as between work experience and employee performance. These results suggest that the impact of human capital factors on performance operates indirectly through psychological mechanisms. The study concludes that enhancing job satisfaction is a critical strategy for improving employee performance in public sector organizations. Therefore, policymakers and managers should focus not only on employees’ educational background and experience but also on creating supportive work environments that foster satisfaction. This study contributes to the literature by providing empirical evidence on the mediating role of job satisfaction in the relationship between human capital and employee performance.