The Effect of Motivation and Compensation on Job Performance

through Job Satisfaction of Vocational Higher Education Lecturers in

East Kalimantan

Suminto, Damar Nurcahyono, Kristin Wulansari, Della Olivia Caterina Kalangit

Business Administration, Information Technology, Politeknik Negeri Samarinda, Jl. Cipto Mangunkusumo, Samarinda,

Indonesia

Keywords: Motivation, Compensation, Job Satisfaction, Job Performance, Lecturer

Abstract: This research aims to analyze and prove the effect of motivation and compensation directly on Job

Performance and indirectly through Job Satisfaction of Vocational Higher Education lecturers in East

Kalimantan. Primary data were collected through questionnaire distribution designed with Likert scale to

259 students, fellow lecturers, and leaders. Analysis of the data collected using multivariate linear

regression analysis with the AMOS program Structural Equation Model as a tool. The analysis revealed that

motivation directly had a significant positive effect on Job Performance and indirectly through Job

Satisfaction. Meanwhile, indirect compensation through Job Satisfaction has a significant positive effect,

but indirectly has no significant effect on Job Performance. The implication of this research is that increased

motivation encourages the creation of Job Satisfaction and Has an effect on the increase of Job

Performance. Meanwhile, the increase in compensation can encourage an increase in Job Satisfaction but it

does not necessarily increase the Job Performance of Vocational Higher Education lecturers in East

Kalimantan. Job Satisfaction is able to be a good mediator in the realization of Job Performance or in other

words job satisfaction is a prerequisite for achieving Job performance.

1 INTRODUCTION

This Higher education is one of the educational

institutions in the national education system. Under

Law No 20 of 2003 concerning the National Education

System, higher education institutions are obliged to

provide education, research and community service

(Depdiknas, 2003). Lecturers are an important

component of a vocational colleges, so that the quality

of their performance needs to be maintained. Matter

that affect lecturer performance do not only come from

variables related to the learning process, but also from

other variables such as motivation, leadership style,

organizational culture, organizational climate,

compensation, job satisfaction. The following are the

research results (Mariani et al., 2017) state that

leadership, organizational climate, motivation have a

significant positive effect partially and simultaneously

on employee performance. While compensation and

job satisfaction mediated by Organizational

commitment has a significant positive impact on the

performance of lecturers (Zain et al., 2017). The

research resuts

(Arifin, 2017) shows compensation does not

have a significant impact on results, work

satisfaction has a significant effect on performance.

Meanwhile, compensation and job satisfaction have

no effect on the performance of lecturers. Effect of

motivation on the performance of lecturers at the

institute of social and political science (IISIP) Yapis

Biak. (Handayani, 2019) stated that motivation

influenced the performance of lecturers. Therefore,

the results of researchers show inconsistencies in

results, so in this case, there is still a research gap.

There are five variables in this paper: motivation,

compensation as independent variable, job

performance as intervening, job performance as

dependent variable. Each variable came from

(Robbins &Timothy, 2009) "Motivating, in an

organizational context, it is the process of working

to achieve organizational goals as a means of

meeting their own personal wishes" and "job

satisfaction: positive feelings about one's job

resulting from the evaluation of its characteristics".

(Masruroh et al, 2012) Compensation is one of the

Suminto, ., Nurcahyono, D., Wulansari, K. and Caterina Kalangit, D.

The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East Kalimantan.

DOI: 10.5220/0010532100003153

In Proceedings of the 9th Annual Southeast Asian International Seminar (ASAIS 2020), pages 78-84

ISBN: 978-989-758-518-0

dominant factors in encouraging someone to

improve performance. An employee achieves

performance outcomes of the duties assigned to

employee (Ismaini & Gunawan, 2019).

2 LITERATURE REVIEW

2.1 Definition of Motivation

(Lecturer, 2018) the term motivation comes from

the word "mover" in Latin, which implies

encouragement or movement. Motivation is a state

that moves a worker who is guided or directed to

accomplish the organizational objectives of the

business. Employees who are pro and optimistic

towards the job situation are encouraged to reach

optimum efficiency through their mental attitude.

(Harwiki, 2016) in comparison, workers do not have

the spirit of work, readily give up, and trouble

completing their job with poor job motivation.

According to (Isahrabiu, 2018) the cause of

behaviour is reason, the motivation of an individual,

conscious or unconscious, arises from his needs. It

can also be argued that motivation or need is an

internal condition, deprivation that induces a person

to do something while evaluating motivation.

Furthermore (Wang et al., 2016) in a person who

supports an individual's desire to undertake such

tasks in order to accomplish goals, motivation is a

personal condition. The desire that resides in

someone is therefore a guiding force that will

realize a behaviour in order to achieve its fulfilment

goals. Motivation indicators used in this study refer

to (Siagian, 2008) as 1) driving force, 2)

willingness, 3) eagerness, 4) forming expertise, 5)

forming skills, 6) responsibility, 7) obligations and

8) goals.

2.2 Definition of Compensation

Martocchio (2015) said that compensation is an

intrinsic and extrinsic reward received by employee

after they done their work. Futhermore (Mondy &

Wayne, 2008) the cumulative remuneration earned

by the employee as a replacement for the services

they render is compensation. Compensation is

adequately provided and the workers are more

fulfilled and driven to accomplish the organization's

objectives. In addition, compensation is also a

custodian to stay afloat. Providing appropriate

compensation in tertiary institutions will attract

quality people to join, retain qualified lecturers, and

motivate lecturers to improve performance.

Therefore, Compensation is all income earned by

employees directly or indirectly in exchange for

services rendered to the institution in the form of

money or products. Awards received by lecturers in

any form are closely related to the job satisfaction

of a lecturer. Indicators of direct and indirect

compensation used are 1) salary or wage, 2)

allowances, 3) incentives, 4) facilities, 5) services.

2.3 Definition of Job Satisfaction

Job satisfaction is the subjective point of view of a

person encompassing the way he/she feels about

his/her job and the organization employed. In

addition, work satisfaction is the good emotional

state arising from the accomplishment of job values.

(Cronley and Kim, 2017). When lecturers feel

satisfied with their work, they prefer to execute and

complete tasks with all their skills. (Siagian, 2002)

says that a person feels satisfied in his job because

he/she realizes that what he has achieved is

maximal. There are positive feelings about their job

for someone with a high level of job satisfaction.

Therefore, job satisfaction is the result of interaction

between humans and the work environment, where

the internal and external organizational environment

is a factor that shapes the organizational climate.

2.4 Definition of Job Performance

According to (Al Mehrzi and Singh, 2016) Job

performance is the outcome or degree of an

individual as a whole's performance in performing

activities over a given period of time relative to

different possibilities, such as job standards,

objectives or targets or predetermined mutually

accepted criteria. In addition (Yang et al., 2016)

state that performance is simply what workers do or

do not do. (Ismaini & Gunawan, 2019) Performance

results are achieved by an employee of the

responsibilities that has delegated to employee.

Furthermore, according to (Ursa, 2007) suggesting

performance indicators include 1) job efficiency is

how well an employee does what needs to be done.

2) job quantity is how long in one day an employee

works. This amount of work can be seen from the

respective work pace of each employee. 3) Duties

implementation is the extent to which employees are

able to do their work accurately or without errors.

4). Responsibility for work is knowledge of the

duties of workers to carry out the work provided.

The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East

Kalimantan

2.5 Previous Research

The results of previous research (Veronika, 2018)

entitled The effect of compensation and job

motivation on employee performance with job

satisfaction as a mediating factor: a study at the

Directorate General of Taxes Regional Offices of

Bali, the finding showed that Compensation and Job

motivation had a significant effect toward employee

performance, furthermore, job satisfaction had a

significant effect toward employee performance,

and job satisfaction had a significant effect towards

employee performance. (Setiadi et al., 2016) in their

research entitled At Semen Indonesia Limited

Company, the impact of compensation and work

motivation on employee performance shows that:

1) compensation, work motivation are positive and

significant in employee performance at the same

time; 2) compensation, work motivation are positive

and significant in employee performance; 3) work

motivation has a dominant effect on employee

performance. Other research from (Raka et al.,

2018): 1) motivation has a positive and important

impact on the performance of the employee;

2) motivation has a positive and significant impact

on job satisfaction; 3) job satisfaction has a positive

and significant impact on the performance of the

employee; 4)motivation has a positive and

significant impact on performance through job

satisfaction. The problem is whether the effect on

work satisfaction and success of motivation and

compensation also applies to lecturers of Vocational

Higher Education in East Kalimantan? For this

reason, this research has been conducted to analyze

whether or not there is a direct and indirect

influence on motivation and compensation variables

on job satisfaction and performance. The hypothesis

1: Motivation has a major effect on job satisfaction

2: Motivation has a major effect on the

performance

3: Compensation has a major effect on job

satisfaction

4: Compensation has a major effect on the

performance

5: Job Satisfaction has a major effect on the

performance

3 RESEARCH METHOD

3.1 Types of Data

The data that was used are primary data obtained

through questionnaire distribution to respondents:

fellow lecturers, students, and superiors at

Samarinda State Polytechnic, Samarinda State

Agricultural Polytechnic, and Balikpapan State

Polytechnic. The sample was 259 respondents,

using the Slovin (1967) in (Sugiyono, 2012) with an

error rate of 5% and Likert scale of 1-5.

3.2 Analysis Method

The collected data were then analyzed by

multivariate linear regression of the Structural

Equation Model (SEM) used, tool which was

operated through the AMOS 23 program. Test the

validity and reliability of the instrument used with a

valid measure, seen from the value of r> 30. An

instrument is declared reliable if the minimum

reliability coefficient is 0.60. It can be inferred, on

the basis of the above opinion, that an instrument is

declared reliable if the value for negligence is>

0.60, while an instrument is declared unreliable if

the value for negligence is <0.60, this refers to the

opinion (Sugiyono, 2012). Assumption Test for

SEM which includes Normality, Linearity,

Multicollinearity tests. Confirmatory analysis test

on SEM is used to confirm the most dominant

factors in a group of variables. The goodness of fit

of the model test, and hypothesis Test

3.3 Variables and Indicators

The exogenous variable is Motivation (X1) with

indicators that adopt (Siagian, 2008) which consists

of X1.1 driving force, X1.2 Willingness, X1.3

Eagerness, X1.4 Forming Expertise, X1.5 Forming

Skills, X1.6 Responsibilities, X1.7 Obligations,

X1.8 Objectives. The second exogenous variable is

Compensation (X2) measured by indicators

consisting of X2.1 Salary or wages, X2.2.

Allowances, X2.3 Incentives, X2.4 Facilities, X2.5

Services. Meanwhile, the intervening variable is Job

Satisfaction (Y1) measured by the indicators used

by (Viethzal, 2014): Y1.1 likes work, Y1.2 loves

work, Y1.3 positive work morale, Y1.4 Work

discipline, Y1. 5 Job Performance. The endogenous

variable is Job Performance (Y2) measured by

indicators adopted from (Mitchel & Larson, 1987)

in (Riduan, 2009): Y2.1 Ability, Y2.2 Initiative,

ASAIS 2020 - Annual Southeast Asian International Seminar

Y2.3 Timeliness, Y2.4 Quality of work, Y2.5

Communication.

4 RESULT AND DISCUSSION

4.1 Validity and Reliability

The pilot test was carried out to test the validity and

reliability of the testing tools used in a sample of 30

respondents. The test results show that the average

of the eight motivation indicators has a correlation

coefficient of 0.744 greater than 0.30. Likewise, the

average of the five compensation indicators has a

correlation coefficient value of 0.441, greater than

0.30, and the average correlation coefficient value

of the Job Satisfaction indicator is 0.821 greater

than 0.30, and the average correlation coefficient

value of the Job Performance indicator. equal to

0.820 is greater than 0.30. This the instrument that

represents the variables used in this study is

declared valid because each of them has a

correlation coefficient> 0.30. The research

instrument is also reliable because each instrument

has a Cronbach alpha value> 0.60. This means that

the instrument can represent the research variables

so that the questionnaire can be continued up to 259

according to the predetermined number of samples.

4.2 Assumption SEM Model Test

The test results using the One-Sample Kolmogorov-

Smirnov Test show a Monte Carlo Sig (2-tailed) of

0.164, where the sig > 0.05 value, which means that

the data is normally distributed. Furthermore, pay

attention to the variance inflation factor (VIF) for

each motivation variable of 2.525, the compensation

variable of 1.386, and the Job Satisfaction variable

of 2.701, Job Performance variable of 3.277 where

each of these numbers is < 10.00, that means that

the variables are not multicollinear. Meanwhile, the

results of the Linearity Test between the variables of

motivation, compensation, and job satisfaction with

job performance from the ANOVA table show a Sig

value of 0.391 where the value of Sig > 0.05, which

means there is a linear relationship between the

research variables. The results of SEM assumption

test:data is normally distributed, no multicollinearity

between exogenous variables, and between research

variables are linearly related. This shows that it

fulfils the requirements to be continued in

hypothesis testing with multivariate linear

regression.

4.3 Goodness of Fit Model Test

The goodness Fit of model test results: the GFI value

is 0.856 close to 1.00 and with a cut of ≥ 0.90 it means

good. RMSEA of 0.070 with a cut off ≤ 0.08 means

that the smaller the better, AGFI of 0.824 is close to

1.00 with a cut of ≥ 0.90 which means good, TLI of

0.884 is close to 1.00 with a cut off of ≥ 0.95 which

means quite good, and CFI of 0.897 is close to 1.00

with a cut off ≥ 0.95 means good enough. The test

results confirm that the research model built is suitable

for testing and proving the influence between the

variables under study. The results of AMOS analysis

obtained the loading factor of each relationship

between variables and the path coefficient of each

influence between variables.

H1: Motivation has a significant effect on Job

Satisfaction, as evidenced by the CR value of 7.410

which is greater than the CR-table ± 1.96 and with a

probability value of 0.000 less than 0.05.

H2: Motivation has a significant effect on Job

Performance, as evidenced by the CR value of

3,821 which is greater than the CR-table ± 1.96 and

with a probability value of 0.033 which is smaller

than 0.05. The biggest contribution to the significant

positive influence on the motivation variable on Job

Satisfaction and Job Performance is derived from

the X1.7 obligation indicator with a loading factor

of 0.704 and followed by the second strongest is

X1.2 willingness with a loading factor of 0.665, the

third is X1.6 responsibility with loading factor of

0.663, the fourth is X1.8 with a loading factor of

0.661, and the fifth is X1.3, willingness with a

loading factor of 0.625. Meanwhile, the other three

indicators contribute with a loading factor of less

than 0.600.

H3: Compensation has a significant effect on Job

Satisfaction, as evidenced by the CR value of 3.383

which is greater than the CR-table ± 1.96 and with a

probability value of 0.000 less than 0.05. The

biggest contribution to the significant positive

influence on the compensation variable on Job

Satisfaction and Job Performance comes from the

X2.3 indicator, which is an incentive with a loading

factor of 0.735 and followed by the X2.2 indicator,

an allowance with a loading factor of 0.680. While

H4: Compensation has a significant effect on Job

Performance, it is not proven because the test results

show CR 1.298 where this value is smaller than the

CR table ± 1.96 and with a probability value (p) =

0.647> than α0.05. The CR value and the probability

indicate that compensation has no significant effect

The Effect of Motivation and Compensation on Job Performance through Job Satisfaction of Vocational Higher Education Lecturers in East

Kalimantan

on Job Performance. Meanwhile H5: Job

Satisfaction has a significant effect on Job

Performance, it is proven. From the test results, it

shows the CR value of 7.227 where this value is

greater than the CR table, which is ± 1.96 and with a

probability value (p) of 0.000 where this value is

<than α 0.05.

Table 1. Influence among Research Variables

Variable

Standardiz

Criti-

Proba-

lana

ed Path

cal

influence

ilit

-tion

Coefficient

Ratio

MV JS 0.981

7.410

***

Sig

MV JP 0.414

3.821 0.033

Sig

CP JS 0.405

3.383

***

CP JP 0.116

1.298 0.647 Not Sig

JS JP 0.720

7.227

***

Sig

Source: Researcher’s computation 2020

The largest contribution came from the Y1.3

indicator, which is positive work morale with a

loading factor value of 0.798, and followed by the

second-largest contributor is Y1.5 indicator, namely

work performance with a loading factor of 0.744, the

third-largest contributor is Y1.1 indicator likes work

with loading factor is 0.701, and the fourth largest

contributor is Y1.4 work discipline with a loading

factor of 0.644, and the smallest contributor is Y1.2

indicator, which is loving work with a loading factor

of 0.595. In terms of the Job Performance variable,

the largest contribution came from the Y2.5

indicator for communication with a loading factor of

0.799, followed by Y2.4 Quality of work with a

loading factor of 0.728, an indicator of Y2.2

initiative with a loading factor of 0.723, and Y2.1

The loading factor is 0.721, and the smallest is Y2.3

indicator. Loading factor of time accuracy is 0.544.

The results of assumption testing and the direct

and indirect effect of motivation on Job Performance

directly or indirectly affect Job Performance.

The impact of motivation on Job Satisfaction is

stronger than the influence of motivation on the Job

Performance. These factors stimulate lecturers to

take actions that will result in the achievement of job

satisfaction and in the end, will result in high Job

Performance. This the findings in this study are that

the scope of the motivational instrument for

Vocational Higher Education lecturers in East

Kalimantan is the spirit of obligation, responsibility,

high willingness to realize, there are goals to be

achieved, willingness in its implementation.

Meanwhile, the implication is the ownership of high

lecturers' work motivation as the main capital to

achieve job satisfaction and performance.

Table 2. Direct, Indirect and Total Effect of Research

Variable

Exo

enous Direct Indirect Total

Variable Effect Effect Effect

Motivation 0.390 0.8383 1,2283

Com

ensation -0.030 0.2324 0,2024

Total

1,4307

Source: Researcher’s computation 2020

The results of hypothesis testing and the direct

and indirect effect between compensation on job

performance, directly/indirectly do not automatically

affect Job Performance.

Compensation directly has no significant effect

on Job Performance, so even though there is a total

effect between the two variables, it is mostly

supported by the indirect effect of compensation on

Job Performance through Job Satisfaction. The

increase in compensation given to lecturers cannot

automatically increase the performance of lecturers

at Vocational Higher Education in East Kalimantan.

Compensation indicators that contribute greatly are

incentives and allowances.

Teaching incentives and structural position

allowances for lecturers with relatively small

additional assignments have not been able to

improve communication quality and work quality,

initiative, and workability. This is possibly why

compensation has no significant effect on lecturer

Job Performance. This is what is new in this study

compared to previous similar studies which state

that Compensation has a significant effect on Job

Performance. The results of this study are not in line

with (Veronika, 2018) and (Setiadi et al., 2016).

Job satisfaction in this study plays an important

role in intervening between motivation and

compensation with Job Performance.

Job satisfaction can mediate well the influence of

exogenous variables with endogenous and contribute

greatly to the total effect. This means that motivation

and compensation encourage lecturers to be satisfied

so that lecturers have positive work morale, work

performance, and enjoy work more, as well as

increase work discipline. This condition is expected

to improve Job Performance.

The research model that has been modified is

illustrated in Figure 1.

ASAIS 2020 - Annual Southeast Asian International Seminar

Figure 1: Research Model Modification

5 CONCLUSION

In this study, motivation either directly or indirectly

through Job Satisfaction has a significant positive

effect on Job Performance. Compensation directly

has no significant effect on Job Performance, while

indirectly through Job Satisfaction has a significant

positive effect. Compensation in the form of

incentives and allowances does not automatically

increase the job performance of lecturers in

vocational higher education environments in East

Kalimantan. The condition for achieving Job

Satisfaction is a prerequisite for the creation of Job

Performance for vocational higher education

lecturers in East Kalimantan. Indicators of

motivation variables that have a significant impact

on Job Satisfaction and Job Performance: obligation,

willingness, responsibility, goals, and willingness.

The compensation variable indicators that have a

significant contribution to the occurrence of a

significant effect on Job Satisfaction are incentives

and allowances. Indicators of Job Satisfaction

variables that have contributed greatly are positive

work morale, work performance, enjoyment of

work, and work discipline. Meanwhile, job

performance variable indicators that have a big

contribution are communication, work quality,

initiative, ability and punctuality.

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