The Effect of Compensation, Labor Insurance, and Old Age Guarantee on Employee Satisfaction in Government Institutions

Authors

DOI:

https://doi.org/10.26668/businessreview/2023.v8i5.1969

Keywords:

Compensation, Labor Insurance, Old Age Guarantee, Job Satisfaction, Government Institutions

Abstract

Purpose: This study aims to find out how the effect of compensation (X1), labor insurance (X2), and old-age insurance (X3) on employee job satisfaction (Y) in a government institution. Nowadays Government Institutions are trying to continuously manage the existence of their employees so that they can work better and can show good work performance so that the organizational goals can be achieved optimally. One of the steps that can be taken is by providing compensation to employees, as well as providing labor insurance and old-age insurance, all of which aim to make employees feel satisfied in working in an organization.

Theoretical framework: This study discusses several theoretical frameworks which include Work Compensation, Labor Insurance, Old Age Guarantee, Job Satisfaction and Government Institutions

Design/methodology/approach: The method used is survey research, which is a research method that takes samples from a population and uses a questionnaire as a means of collecting and processing data. This type of research is explanatory research, which is a study that explains the causal relationship between research variables through reliable hypothesis testing.

Findings: Based on the results of multiple linear regression analysis, the regression model equation Y = 30.458 + 0.430X1 + 0.270X2 + 0.262X3, meaning that compensation (X1), labor insurance (X2), and old-age insurance (X3) partially and simultaneously have an effect which is significant to employee job satisfaction (Y). The factor that has the most dominant influence on employee job satisfaction (Y) in government institutions is the compensation factor (X1), this indicates that the compensation factor (X1) is a factor of urgent need that must be provided by the government institutions to increase employee job satisfaction.

Research, Practical & Social implications: The results are useful for decision makers in Government Institutions and other organizations on work culture in Indonesia because they show that the proposed practices have an important impact on organizational excellence.

 

Originality/value: The value of this study stems from its handling of one of the important sectors, namely the Old Age Guarantee on Employee Satisfaction in companies, because this sector is considered the most important and effective in the process of corporate government development.

Downloads

Download data is not yet available.

References

Abdulrahim, H., & Yousif, G. (2023). Remote Work Implications on Productivity of Workers in the Saudi Financial Sector. International Journal of Professional Business Review, 8(4), e01064-e01064.

Adekola, B. (2012). The impact of organizational commitment on job satisfaction: A study of employees at Nigerian Universities. International Journal of Human Resource Studies, 2(2), 1.

Agustine, T. D., & Nawangsari, L. C. (2020). The Effect of Compensation and Work Loads towards Intension of Turnover with Work Satisfaction as a Variable Mediation in Clinic Employees of PT Nayaka Era Husada Branch of Bekasi. International Journal of Innovative Science and Research Technology, 5(7), 1304-1312.

Alegre, I., Mas-Machuca, M., & Berbegal-Mirabent, J. (2016). Antecedents of employee job satisfaction: Do they matter? Journal of Business Research, 69(4), 1390-1395.

Ariani, D. W. (2023). Exploring Relationship of Job Satisfaction, Organizatonal Culture, and Employee Performance in Small Medium Enterprise. International Journal of Professional Business Review, 8(2), e0876-e0876.

Badrolhisam, N. I., Achim, N., & Zulkipli, N. (2019). Employee career decision making: the influence of salary and benefits, work environment and job security. Journal of Academia, 7, 41-50.

Bastari, A., Bandono, A., & Suharyo, O. S. (2021). The development strategy of smart campus for improving excellent navy human resources. Global Journal of Engineering and Technology Advances, 6(2), 033-043.

Berry, M. L. (2010). Predicting Turnover Intent: Examining the Effects of Employee Engagement, Compensation Fairness, Job Satisfaction, and Age.

Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from the banking sector of Pakistan). International journal of business and social science, 5(2).

Igalens, J., & Roussel, P. (1999). A study of the relationships between compensation package, work motivation, and job satisfaction. Journal of organizational behavior, 20(7), 1003-1025.

Kabir, M. N., & Parvin, M. M. (2011). Factors affecting employee job satisfaction in the pharmaceutical sector. Australian journal of business and management research, 1(9), 113-123.

Nugroho, S. H. (2022). The role of human resources management in organizational perspective. Global Journal of Engineering and Technology Advances, 10(03), 012-018.

Nugroho, S., Bandono, A., & Suharyo, O. (2021). Human resources development assessment planning program and bureaucratic reform management on the performance of government organization. Management Science Letters, 11(4), 1429-1438.

Nursaid, N., Qomariah, N., Sanosra, A., Satoto, E. B., & Utomo, A. W. (2020). Improvement of Job Satisfaction Based on Work Motivation, Work Environment, Competence and Compensation for Hospital Employees. Indonesian Journal of Law and Economics Review, 7, 10-21070.

Rahman, K. U., Akhter, W., & Khan, S. U. (2017). Factors affecting employee job satisfaction: A comparative study of conventional and Islamic insurance. Cogent Business & Management, 4(1), 1273082.

Suhartono, S., Sulastiningsih, S., Chasanah, U., Widiastuti, N., & Purwanto, W. (2023). The Relationship of Leadership, Discipline, Satisfaction, and Performance: A Case Study of Steel Manufacture in Indonesia. International Journal of Professional Business Review, 8(2), e01146-e01146.

Suharyo, O., Prabowo, A., & Krisdiono, E. (2022). Decision-making of maritime development scenario on the impact of a naval base for supporting navy ships operations. Decision Science Letters, 11(1), 81-90.

Van Scheers, L., & Botha, J. (2014). Analyzing relationship between employee job satisfaction and motivation. Journal of Business and Retail Management Research, 9(1).

Downloads

Published

2023-05-22

How to Cite

Nugroho, S. H., & Bandono, A. (2023). The Effect of Compensation, Labor Insurance, and Old Age Guarantee on Employee Satisfaction in Government Institutions. International Journal of Professional Business Review, 8(5), e01969. https://doi.org/10.26668/businessreview/2023.v8i5.1969