The Effect on Financial and Non-Financial Compensation on Employees' Performance Satisfaction and Performance Loyalty (Case Study on Employees at Production Subdivision of Abas Trade Entreprises of Banyuwangi)

Abstract

This study was conducted in Abas Trade Enterprises of Banyuwangi. It aims to observe financial and non-financial compensation effects to the performance satisfaction and employees’ performance loyalty. Moreover, this study was also aimed to observe the effect on employees’ performance satisfaction to the employees’ performance loyalty. The researcher used quantitative approach with explanatory research design. The method in collecting samples was probability sampling by using stratified random sampling technique. The number of the samples used in this study were 73 employees at production subdivision. The data were collected by using questionnaires and measured by using likert scale. Meanwhile, the data analysis used in this study was SEM-PLS (Partial Least Square) by using an application of Smart PLS 3.0 software. The results of this study confirmed: (1) Financial compensation had significant effects to the employees’ performance satisfaction of Abas Trade Enterprises of Banyuwangi. (2) Non-financial compensation also had significant effects to the employees’ performance satisfaction of Abas Trade Enterprises of Banyuwangi. (3) Financial compensation did not affect significantly to the employees’ performance loyalty of Abas Trade Enterprises of Banyuwangi. (4) Non-financial compensation also did not affect significantly toward employees’ performance loyalty of Abas Trade Enterprises of Banyuwangi. (5) Performance satisfaction affected significantly to the employees’ performance loyalty of Abas Trade Enterprises of Banyuwangi.