Examining the Effects of Compensation and Leadership Style on Employee Performance: Evidence From The Public Works and Spatial Planning Agency of Mentawai Islands Regency

This study aims to analyze the effect of compensation and leadership style on employee performance, with job satisfaction as an intervening variable, at the Public Works and Spatial Planning Office of the Mentawai Islands Regency. The study used a quantitative approach with a census method involving 184 employees. Data analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with the help of SmartPLS 3. The results of the study indicate that compensation has a positive and significant effect on employee performance. Leadership style does not directly affect employee performance, but has a significant effect on job satisfaction. Job satisfaction has a significant effect on employee performance. The results of the mediation test indicate that job satisfaction does not mediate the effect of compensation on employee performance, but is able to mediate the effect of leadership style on employee performance. These findings contribute to the development of human resource management theory in the public sector, particularly in the context of local government organizations in the archipelago.

Compensation, Leadership Style, Job Satisfaction, Employee Performance, Mentawai Islands

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