The influence of leadership effectiveness, motivation, and compensation on job engagement with job satisfaction as an intervening variable

This study aims to assess the impact of leadership effectiveness, work motivation, and compensation on employee job satisfaction, as well as their influence on job engagement at PT. Beautiful Gift Partners. A survey method with a quantitative approach was employed, targeting 200 employees from the company. Using the Slovin formula, 133 respondents were selected. Statistical analyses included validity and reliability tests, path analysis, partial hypothesis testing (t-test)


Introduction
In an organization, the benefits of empowering human resources (HR) are widely acknowledged in striving toward achieving organizational goals and success.Without support from competent human resources, an organization may encounter challenges in goal attainment.To mitigate such issues, organizations need to perceive individuals as not organizational burdens but assets.Human resources are a primary driver within an organization.The success of a company relies on knowledgeable and skilled human resources.
However, challenges often arise in practice, with job dissatisfaction contributing to employee and organizational performance.Hence, one step companies take is to foster employee job satisfaction as a motivation for achieving work outcomes and company profits.In other words, productivity or employee output increases with job satisfaction.Employee engagement requires serious attention from organizations to enhance employee and company productivity.Organizations that endure the business competition rely on their best people.
Company leaders are crucial in managing, planning, and organizing company activities.Meanwhile, employees are the primary workforce involved in execution.Effective leaders significantly influence organizational goal achievement effectively and efficiently.
PT. Mitra Karunia Indah is an outsourcing cleaning services company.The company has developed and employs quality staff capable of performing tasks professionally and proficiently.Thus, the company can achieve its goals and objectives effectively, efficiently, and economically.However, several issues were identified by researchers among some employees in carrying out their duties, including high turnover rates, absenteeism, increased tardiness, and a need for more innovation among PT.Mitra Karunia Indah employees.This reflects a lack of leadership effectiveness, motivation, and compensation, leading to employee dissatisfaction and high turnover rates, which, in turn, diminish job engagement.Conversely, low turnover rates indicate high job engagement between the company and its employees.
Based on data obtained from PT. Mitra Karunia Indah, regarding employee turnover rates over the years, the current turnover rates do not meet the company's standards.For further clarity, the turnover data below can be examined.The role of leadership effectiveness in managing, mobilizing, and utilizing human resources within a company cannot be overstated.This is evident in the various leadership styles, each with its unique characteristics when implemented within a company.Effective company leaders are instrumental in achieving organizational goals, particularly as employees continually seek clarity on their roles within the company (Rezvan, 2017).
Compensation, as the total amount provided by the company to employees as a reward or remuneration for their work, plays a pivotal role in employee satisfaction and motivation.As Mulyadi (2017) points out, compensation encompasses everything given by the company to employees as remuneration for their contributions.Mangkunegara (2017) further emphasizes that compensation significantly influences job satisfaction, work motivation, and performance.Therefore, providing appropriate compensation for job roles and positions is a key driver of employee job satisfaction.
Poor working conditions, low compensation, and low motivation levels increase employee absenteeism.This is attributed to unmet expectations regarding compensation, leading employees to opt for freelance work with higher pay.Adequate compensation, such as overtime pay, holiday bonuses, and performance incentives, boosts employee morale and job engagement.
Motivation is essential within organizations to outperform others, driving individuals to complete tasks successfully and achieve high performance.Sutrisno (2016) defines motivation as a factor that drives individuals to perform specific activities, thus influencing behavior.However, high motivation is needed to increase organizational commitment, according to information from PT. Mitra Karunia Indah employees, motivation levels are notably low.Herzberg's theory suggests that low motivation levels lead to complaints about inadequate salaries and bonuses, inadequate working facilities, and the inability to complete tasks on time, contributing to employee dissatisfaction.
Job satisfaction is a crucial element in a company.Employees who find satisfaction in their work positively impact emotional maturity and develop a liking for their jobs, ultimately fostering enthusiasm and motivation to achieve greater accomplishments.Therefore, companies must prioritize employee job satisfaction.Dissatisfied employees perform poorly, while satisfied employees work more enthusiastically (Kusumah, 2015).
Numerous studies have been conducted on job engagement, including those by Maghfiroh (2021) on the influence of leadership style, work environment, and compensation on employee job satisfaction.Oktaviani (2019) investigated the influence of leadership, career development, compensation, and work environment on job engagement.Handoko (2018) explored the impact of career development and compensation on organizational commitment through job satisfaction.Puspita (2020) examined the effect of leadership effectiveness, work environment, and communication on employee performance.Hertanty (2015) studied the influence of leadership behavior, employee motivation, and organizational climate on job satisfaction.However, there has yet to be any research on job engagement concerning the combined variables of leadership effectiveness, motivation, and compensation on employee job satisfaction and engagement.
This study explores the relationship between leadership effectiveness, motivation, compensation, job engagement, and job satisfaction among PT.Mitra Karunia Indah employees.

Theoretical background and hypothesis
The Influence of Leadership Effectiveness on Job Engagement Leadership effectiveness contributes significantly, accounting for 38.4% of the variance in employee job engagement.This indicates that higher leadership effectiveness correlates with increased job engagement among employees.Effective leaders can foster cooperation, maintain good relationships, motivate employees, and proficiently solve problems while engaging in collaborative decision-making.Ahmad's (2018) study supports the influence of leadership effectiveness on job engagement, consistent with findings by Pranitasari (2019) and Oktaviani (2019).

H1:
It is hypothesized that leadership effectiveness influences employee job engagement.

The Influence of Motivation on Job Engagement
Work motivation is continuously emphasized to enhance organizational performance through work engagement.Competent human resources are crucial for organizations to remain competitive.Motivation, comprising intrinsic and extrinsic motivation and workplace engagement, affects job performance.Saveria's (2020) study supports the influence of motivation on job engagement, echoed by Rohmaniyyah (2018) and Purwanto (2022).

H2:
It is hypothesized that motivation influences employee job engagement.

The Influence of Compensation on Job Engagement
Compensation positively impacts employee job engagement.Adequate compensation motivates employees, enhancing their enthusiasm and performance.Thus, compensation is pivotal for companies, providing motivation aligned with employees' contributions.Elsa et al. (2018) found a significant impact of compensation on job engagement, supported by Antony (2018) and Pranitasari (2022).

H3:
It is hypothesized that compensation influences employee job engagement.

The Influence of Leadership Effectiveness on Job Satisfaction
Organizational success hinges on effective leadership, which significantly influences job satisfaction.Lauran's (2021) study supports the impact of leadership effectiveness on job satisfaction, consistent with Astuti (2018) and Odei et al. (2016).

H4:
It is hypothesized that leadership effectiveness influences employee job satisfaction.

The Influence of Motivation on Job Satisfaction
Motivation drives individuals to perform tasks sincerely and enthusiastically, impacting job satisfaction.Dhermawan's (2019) study, alongside Yohana (2017) and Indraswari (2018), supports the influence of motivation on job satisfaction.

H5:
It is hypothesized that motivation influences employee job satisfaction.

The Influence of Compensation on Job Satisfaction
Inadequate compensation leads to employee dissatisfaction, resulting in reduced performance, increased complaints, strikes, and absenteeism-financial or non-financial compensation demonstrates appreciation for employees' efforts.Prasetio (2018) found a significant impact of compensation on job satisfaction, supported by Puspitawati (2020) and Evan (2015).
H6: It is hypothesized that compensation influences employee job satisfaction.

The Influence of Job Engagement on Job Satisfaction
Maintaining a harmonious relationship between the organization and its employees effectively retains employees.A sense of attachment between employees and the organization fosters job satisfaction, enhancing organizational performance.Suhendar's (2017) study supports the influence of job engagement on job satisfaction, along with Prihastuti (2022) and Kristanti (2016).H7: It is hypothesized that job engagement influences employee job satisfaction.

Methodology
This research employs a quantitative research approach with a survey method.The population for this study comprises 200 employees.The sampling method is based on certain levels for selection and extraction, and the sample size is determined using the Slovin formula.The questionnaire was created online using Google Forms, and the link was distributed via chat groups and personal messages on WhatsApp.Data collection was conducted for two weeks in November, resulting in 133 samples.Data processing for this study was performed using Microsoft Excel 2013 and Statistical Package for the Social Sciences (SPSS) software.

Sobel Test
The Sobel test is conducted to determine the indirect effect or test the mediation hypothesis.
The Sobel test is one of the tools used to examine the significance level of the mediating variable with the exogenous variable through the mediating variable.In this study, the steps to test mediation with the Sobel test are as follows: The Influence of Leadership Effectiveness on Job Engagement Through Job Satisfaction To determine the indirect effect of the Sobel test of the variable leadership effectiveness on job satisfaction, refer to the following table: The results of the Sobel test calculation above produced a p-value of 0.53375357 > 0.05, which means that the job satisfaction variable cannot mediate the influence of leadership effectiveness on work engagement.

The Influence of Work Motivation on Work Engagement Through Job Satisfaction
The indirect effect of using the Sobel test of work motivation variables on work engagement through job satisfaction can be seen in the following table:  The results of the Sobel test calculation above produced a p-value of 0.54022265 > 0.05, which means that the job satisfaction variable cannot mediate the influence of work motivation on work engagement.

The Effect of Compensation on Work Engagement Through Job Satisfaction
To determine the indirect effect of using the Sobel test of compensation variables on work engagement through job satisfaction, it can be seen in the following table: The results of the Sobel test calculation above produce a p-value of 0.53375357 > 0.05, which means that the job satisfaction variable cannot mediate the effect of compensation on work engagement.

Leadership Effectiveness on Employee Job Satisfaction
The test results in this study show that leadership effectiveness influences job satisfaction.It can be seen that sig.(significance) the leadership effectiveness variable is 0.012, which is smaller than the probability value (0.05), so from the test results, it can be concluded that leadership effectiveness has a direct and significant effect on job satisfaction.Employee Job Satisfaction is formed due to underlying factors related to work, coworkers, supervision, and leadership.Employee job satisfaction will increase if the supervisor or leader is friendly towards the employee and can understand the employee's condition, offer praise for good performance, listen to the employee's opinion, and show a personal interest in the employee.So, the higher the leadership effectiveness, the higher the employee job satisfaction.The results of this research align with research conducted by Rasmjui and Putranti (2017), which states that leadership effectiveness has a positive and significant effect on employee job satisfaction.

Work Motivation on Employee Job Satisfaction
The test results in this study show that work motivation does not affect job satisfaction.It can be seen that sig.(significance) the work motivation variable is 0.102, which is greater than the probability value (0.05), so from the test results, it can be concluded that work motivation has no direct significant effect on job satisfaction.High job satisfaction is caused by high work motivation.Therefore, motivation is needed for everyone to encourage them to work because with motivation, a person will have a good work spirit.If a leader can provide encouragement and fulfill the desires or needs of his employees, the employees will also be motivated to work better.
High work motivation in employees will certainly provide high enthusiasm in carrying out their work.Due to the lack of motivation of employees, they cannot create job satisfaction from the motivation variable indicator, which has the lowest score, namely the need for power.Therefore, companies must pay attention to what their employees need.The results of this research are supported by Khairunnisa & Gulo (2022) research that motivation does not affect employee satisfaction.Meanwhile, the results of this research contradict research conducted by Sutanto and Aryanto (2018) and Nurjaya (2021), which state that motivation has a positive and significant effect on employee satisfaction.

Compensation for Employee Job Satisfaction
The test results in this study show that compensation affects job satisfaction.It can be seen that sig.(significance) the compensation variable is 0.000, which is smaller than the probability value (0.05), so from the test results, it can be concluded that compensation directly affects the job satisfaction variable.Increasing employee job satisfaction is influenced by increasing the compensation provided.The compensation can be insurance, salary appropriate to the job, facilities, and allowances that motivate employees to work.So, compensation greatly influences employee job satisfaction.If compensation is given to employees, this will provide job satisfaction because if an employee gets appropriate compensation for what they have done for the company, the employee will also get good job satisfaction.

Job Satisfaction on Work Engagement
The test results in this study show that job satisfaction does not affect work engagement.It can be seen that sig.(significance) is 0.060, where this value is greater than the probability value (0.05), so from the test results, it can be concluded that job satisfaction has no direct effect on the work engagement variable.The better the job satisfaction in the company, the higher the level of work engagement, and vice versa.So, employees with a high level of work engagement will likely have a high level of commitment to their work.Job satisfaction does not influence employee engagement with their work; engaged employees are quick to show their best performance to help the company develop business, which will contribute positively to its finances.
Leadership Effectiveness on Employee Work Engagement Through Job Satisfaction The test results in this study show that leadership effectiveness does not affect work engagement through job satisfaction.This is confirmed by the results of the Sobel test calculation, resulting in a p-value of 0.53375357 > 0.05, which means The influence of leadership effectiveness on work engagement cannot be mediated by job satisfaction variables.High levels of work engagement are created due to job satisfaction and are associated with high levels of leadership effectiveness.Therefore, job satisfaction is an important factor that can encourage leadership effectiveness and work engagement.If the existing leadership is not carried out effectively, there will be no employee satisfaction or work engagement with the company.

Motivation of Employee Work Engagement Through Job Satisfaction
The test results in this study reiterate the negative consequences of low job satisfaction on employee engagement.They show that work motivation, while important, does not directly impact work engagement through job satisfaction.This is confirmed by the results of the Sobel test calculation, resulting in a p-value of 0.54022265 > 0.05, which means that the influence of work motivation on work engagement cannot be mediated by the job satisfaction variable.The high level of satisfaction and satisfaction with one's work is a trigger for improving one's performance due to good work motivation from superiors and can also have a direct impact on work engagement that will arise from employees because they feel a sense of satisfaction in themselves (Baraweri & Suharnomo, 2015).This underscores the need for good work motivation to foster job satisfaction and employee attachment to the company where they work.Conversely, without good motivation from superiors, job satisfaction will be low and can cause employees to not perform well, and can even encourage employees to leave the company (Paramita, Putra, and Handaru, 2016).This highlights the urgency of addressing low job satisfaction to maintain a high level of employee engagement.

Compensation for Employee Work Engagement Through Job Satisfaction
The test results in this study emphasize the role of compensation in job satisfaction and its subsequent impact on employee engagement.They show that compensation plays a significant part while not directly influencing work engagement through job satisfaction.This is confirmed by the results of the Sobel test calculation, resulting in a p-value of 0.53375357 > 0.05, which means that the job satisfaction variable cannot mediate the effect of compensation on work engagement.By providing adequate compensation to employees, there will be satisfaction and satisfaction with their work, which will later be a trigger for increasing one's performance due to adequate compensation and in accordance.Employee expectations will directly impact work engagement that will arise from employees because they feel a sense of satisfaction that the company has provided.This underscores the importance of providing adequate and appropriate compensation to ensure job satisfaction and employee engagement.An employee's appreciation of goals and concentration of energy, which appears in the form of initiative, effort and persistence towards organizational goals, is work engagement according to Macey et al., (2009).Continued by Gallup, (2013) work engagement is a work bond that fully involves employees and is truly willing to be involved in an organization.An employee's sense of attachment to the company is an important part of an organization because it can align the goals between the employee and the company, resulting in a positive effect, namely good commitment.

Conclussion
Based on the research results, it is concluded that leadership effectiveness has a positive effect on employee job satisfaction.Work motivation does not directly influence job satisfaction, but it is important to maintain high work morale.Fair and appropriate compensation has a positive effect on job satisfaction.Job satisfaction does not directly affect the level of work engagement but can increase employee commitment to the company.Leadership effectiveness, work motivation, and compensation do not directly influence work engagement through job satisfaction but are important factors in maintaining loyal and committed employees.

Suggested
Based on the research results, PT.Karunia Indah Partners can consider some suggestions.Companies must improve leadership effectiveness by paying more attention to assigning tasks according to SOPs and developing ideas that encourage employee performance.Work motivation can be increased by providing appropriate facilities and encouraging employees to excel.In terms of compensation, the company should provide transportation money directly and ensure timely payment of salaries.Rewarding work performance and retaining employees with good work ethics is important to increase work engagement.Finally, to increase job satisfaction, companies can provide challenging tasks and ensure employees feel happy in carrying out their duties.By implementing these suggestions, companies can improve employee performance and satisfaction and strengthen their attachment to the company.

Figure 1 .
Figure 1.Research Conceptual Framework conducted using multiple regression methods through SPSS version 26 for Windows to examine the influence of independent variables on the dependent variable.The table below shows the regression analysis results on the influence of Leadership Effectiveness, Work Motivation, and Compensation on Job Engagement.Based on the coefficients of path substructure 1 and substructure 2, the overall path analysis diagram can be depicted to illustrate the influence of Leadership Effectiveness, Work Motivation, and Compensation on Job Satisfaction through Job Engagement, job insecurity, and work environment on job satisfaction via work motivation in the following figure:

Table 1 .
Recapitulation of Employee Turnover Rate at PT. Mitra Karunia Indah

Table 1
provides a crucial starting point for our discussion, illustrating the turnover rate or the number of employees who resigned from 2015 to 2019.This high turnover rate, a clear indicator of employee dissatisfaction, is primarily attributed to the inadequate compensation provided by the company.Such dissatisfaction disrupts workflow, necessitating rehiring and additional motivation and training for new employees.

Table 2 .
Sobel Test Results for Leadership Effectiveness

Table 3 .
Results of the Sobel Test for Work Motivation

Table 4 .
Compensation Sobel Test Results