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Compensation, Employee Performance, and Mediating Role of Retention: A Study of Differential Semantic Scales

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  • Dina Sarah Syahreza
  • Prihatin Lumbanraja
  • Ritha F. Dalimunthe
  • Yeni Absah

Abstract

Compensation has a high effect on employee retention within a company because with satisfactory compensation, employees will feel that the company is caring about employee needs. This study examines the effect of compensation on employee performance. The study was conducted in the hospitality industry in Medan City, North Sumatra, Indonesia. A total of 200 employees from 5 hotels in Medan City were taken as sample. Data were analyzed by using SMART PLS program. The results show that compensation has a significant positive effect on performance; compensation has a significant positive effect on retention; retention has a significant positive effect on performance; retention mediates the effect of compensation on performance. The result of the research is expected to give different perspective and novelty to the improvement of hotel employee performance in Medan City, North Sumatera.

Suggested Citation

  • Dina Sarah Syahreza & Prihatin Lumbanraja & Ritha F. Dalimunthe & Yeni Absah, 2017. "Compensation, Employee Performance, and Mediating Role of Retention: A Study of Differential Semantic Scales," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 151-159.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3a:p:151-159
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    References listed on IDEAS

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    Cited by:

    1. Blessing Kanyumba & Melanie Lourens, 2021. "Talent retention strategies for female academics in the higher education sector:A Sub-Saharan Africa context," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 142-149, October.

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