Analysis of the Effect of Compensation, Work Motivation, and Job Satisfaction on Employee Productivity: A Case Study of a Frozen Food Company in Poultry Processing

Abstract

This study explores the role of human resource management in achieving business goals, focusing on the impact of compensation and work motivation on employee job satisfaction. Conducted at a Frozen Food Company processing chicken and fast food items, the research spanned November to December 2023 across Maros Regency, Makassar City, and Gowa Regency. A quantitative approach was used, with a sample of 40 employees selected through non-probability sampling. Data were analyzed using structural equation modeling (SEM) with SmartPLS 4.0. Results show that compensation significantly impacts job satisfaction (path coefficient 0.524, p-value 0.001) and work motivation also has a significant effect (path coefficient 0.344, p-value 0.026). These findings emphasize the importance of improving compensation and work motivation to enhance employee satisfaction. Companies should focus on these areas within their human resource management strategies. Keywords: Human resource management, compensation, work motivation, employee job satisfaction, frozen food industry, quantitative research, structural equation modeling (sem), smartpls 4.0.

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