The Effect of Compensation on Job Satisfaction with Work-Life Balance as an Intervening Variable: A Study at PT. XYZ, Tangerang

Abstract

This study aims to analyze the effect of compensation on employee job satisfaction with work-life balance as an intervening variable in a manufacturing company. The research is motivated by the high level of dissatisfaction with compensation and the imbalance in work-life conditions in the manufacturing sector. A quantitative explanatory approach was applied using the Structural Equation Modeling–Partial Least Square (SEM-PLS) method with 209 respondents selected through stratified sampling. The results show that compensation has a positive and significant effect on both job satisfaction and work-life balance, work-life balance has a positive and significant effect on job satisfaction, and work-life balance mediates the effect of compensation on job satisfaction. The conclusion emphasizes that fair compensation and organizational support for employees’ work-life balance are crucial to enhance job satisfaction and sustain organizational performance.

Keywords: Compensation, Work-Life Balance, Job Satisfaction, SEM-PLS