The Effect of Compensation and Motivation on Employee Satisfaction and Performance at PT

Abstrak. Basic performance is necessary to maintain employees with a decent standard of living, but compensation also provides a tangible measure of an individual's value to the company. Human resource management according to the author is a protest to regulate existing human resources within an organization so that it is effective and efficient and is carried out through existing functions to achieve sales, employee, and community goals. the authors use an error tolerance limit of 5%, the population used in this study are employees of PT. Pasma Karya Indonesia. The HR Division, namely the HRD Section, totaled 100 people. The results of the study show that compensation, motivation have positive and significant direct effect on job satisfaction and employee performance.


INTRODUCTION
Human Resources is a very important element in determining the success of a company because humans are creatures that have thoughts, feelings, needs, and certain expectations. This really requires special attention, because these factors will affect the competence of employees which will produce Automatically high company performance will also produce employees with high performance. Employee performance can be seen from the aspects of quantity and quality of work which include timeliness of execution of work, accuracy of work, level of service provided, error rate of work, competency of analyzing data, and competence of evaluating.
Basic performance is necessary to maintain employees with a decent standard of living, but compensation also provides a tangible measure of an individual's value to the company. Compensation is a strategic human resource function that has a significant impact on other human resource functions. (Andika et al., 2022) The research object was conducted at Work motivation will greatly affect employee performance. If an employee works in a company every day and has good work motivation will certainly have a positive impact on employee loyalty and performance and of course, the employee will also have good job satisfaction because work motivation itself has a positive impact on job satisfaction, this is in strengthen also by the theory of Mc. Gregor in As'ad (Kristiwardhana et al., 2017) states that a person works because work is an innate condition such as playing or resting to be active and do something.

Employee Performance
In an organization or company, job satisfaction is an important factor that must be formed in the work environment.
Because job satisfaction will have an impact on one's performance. Spector states job then the employee will always be enthusiastic at work. (Handoko, 2008) states that the personnel department designs and administers employee compensation. If the compensation provided is appropriate, employees are more satisfied and motivated to achieve organizational goals.
As (Simamora, 2012) said, a good compensation system is a compensation system that is responsive to situations and a system that can motivate employees. In this case, the compensation system should satisfy the needs of employees, ensure fair treatment of them and provide rewards for their performance.

Indirect Effect of Motivation on
Employee Performance Through Job

Satisfaction
Hotgets and Luthans in (Susanto, 2016) state that motivation is a psychological process through unsatisfied desires, which are directed and encouraged to achieve goals or incentives. The basic process of motivation begins with the existence of a need (needs). Needs are created when there is an imbalance physiologically and psychologically.
From this description, motivation has a positive and significant effect indirectly on compensation through job satisfaction.
From the description above, it can be described as a paradigm of the influence of compensation and motivation on job satisfaction, and its impact on employee performance is as follows:

Hypothesis
Based on the following framework of thinking, the following hypotheses will be presented:   t table is determined with a significance level of 5% with degrees of freedom df = (n-k-1) where n is the number of respondents and k is the number of variables.

Sobel Test
According to Baron and Kenny a variable is called an intervening variable if it influences the relationship between the predictor variable (independent) and the criterion variable (dependent) (Ghozali, 2006