The effect of compensation, work environment and work stress on employee satisfaction

Abstract

Purpose: This study aims to analyze the influence of compensation, work environment, and work stress on employee job satisfaction at PT. TPI.

Methods: This research employs a quantitative approach. Data were collected through a questionnaire distributed to the entire population, resulting in a saturated sample of 100 employees from PT TPI. The collected data were analyzed using the Structural Equation Modeling (SEM) technique with the SmartPLS software.

Findings: The results indicate that compensation has a significant positive effect on employee job satisfaction. Conversely, the work environment does not show a significant direct effect on job satisfaction. Furthermore, work stress is found to have a significant negative effect on the level of employee job satisfaction at the company.

Originality: This study provides specific empirical evidence from the context of PT. TPI, examining the simultaneous influence of three critical factors—compensation, work environment, and work stress—on job satisfaction. It offers a focused analysis within a distinct industrial setting, contributing to the understanding of how these variables interact in a particular organizational environment.