The Effect of Compensation and Employee Empowerment on Employee Loyalty through Job Satisfaction as an Intervening Variable (Study at Perpustakaan Nasional RI)

Abstract

This study aims to determine the influence of compensation and employee empowerment on employee loyalty through job satisfaction as an intervening variable. The research sample consisted of 113 employees of the National Library of Indonesia who worked in the Planning and Finance Bureau, the Legal, Organization, Cooperation, and Public Relations Bureau, the Human Resources and General Affairs Bureau, and the Central Education and Training Unit. The method used is a survey method with a quantitative approach. The sampling technique in this study uses Probability Sampling with the Taro Yamane formula and a 5% error rate. In hypothesis testing, the data analysis technique used is Structural Equation Modeling Partial Least Square (SEM-PLS) using SmartPLS Version 4.0 software. The results of the calculations in this study indicate that compensation has a positive and significant direct effect on employee loyalty, employee empowerment does not have a significant and negative direct effect on employee loyalty, job satisfaction has a positive and significant direct effect on employee loyalty, compensation has a positive and significant direct effect on job satisfaction, employee empowerment has a positive and significant direct effect on job satisfaction, compensation has a positive and significant indirect effect on employee loyalty through job satisfaction, and employee empowerment has a positive and significant indirect effect on employee loyalty through job satisfaction.