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The Effect of Compensation toward Job Satisfaction and Job Performance of Outsourcing Employees of Syariah Banks in Malang Indonesai

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  • Sopiah .

Abstract

The utilization of manpower outsourcing model has now become a trend in the recruitment of labor by companies in Indonesia. This system of outsourcing was initially applied to manufacturing companies only but lately banking companies also use this as a model of recruitment, therefore in the banks there are two types of employees, namely permanent employees and employees or outsourcing contract status. Whether the compensation give job satisfaction to the employees is the question, and the next question is whether their job satisfaction also affects their performance. Outcomes research concluded- (1) Compensation received by outsourcing employees of Syariah banks in the city of Malang, both financial and nonfinancial compensation in generally perceived as the level of satisfaction, quite satisfied and very satisfied (2) Job satisfaction of outsourcing employee of Syariah banks in the city of Malang, perceived level quite satisfied, dissatisfied and very dissatisfied (3) Performance of outsourcing employees of Syariah banks in the city of Malang is in pretty good level, good and very good (4) There is a significant positive financial compensation on employee performance directly (5) There is a significant positive financial compensation to performance through job satisfaction (6) There is the influence of nonfinancial compensation on employee performance directly (7) There is a significant positive nonfinancial compensation on employee performance through job satisfaction. From these results suggested (1) For Syariah banks- The results showed that employees claimed financial compensation, nonfinancial compensation received has been good, quite good and very good encourage outsourcing employee job satisfaction and employee performance. Therefore, these conditions must be maintained in order the system develops during this revamped as implemented in other companies outside Syariah banking, which in turn can cause turbulence (2) For other companies and governments need to adopt the use of labor outsourcing models practiced in Syariah banking. Where recruitment patterns prepared by the association of Syariah banking, so it does not harm the employee income since no deduction of wages or salaries of employees upon acceptance of employment. In addition, within the specified time employees can be recruited as permanent employees on Syariah banking, if the model is implemented in Indonesia, it will reduce the demonstrations in the streets and can ensure future employees.?Keywords- Job Satisfaction, JobPerformance ?

Suggested Citation

  • Sopiah ., 2013. "The Effect of Compensation toward Job Satisfaction and Job Performance of Outsourcing Employees of Syariah Banks in Malang Indonesai," International Journal of Learning and Development, Macrothink Institute, vol. 3(2), pages 77-91, April.
    • Handle: RePEc:mth:ijld88:v:3:y:2013:i:2:p:77-91
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    1. Allan P. O. Williams, 2006. "Leadership in Change," Palgrave Macmillan Books, in: The Rise of Cass Business School, chapter 15, pages 200-220, Palgrave Macmillan.
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    1. Nesreen Awada & Siti Sarawati Johar & Fadillah Binti Ismail, 2019. "The effect of employee happiness on performance of employees in public organization in United Arab Emirates," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(5), pages 260-268.

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    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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