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With Job Satisfaction or Not? The Role of Job Satisfaction in the Relationship Between Training and Rewards on Employee Productivity

Author

Listed:
  • Ariani Misna

    (Universitas Balikpapan, Faculty of Economics and Business, Department of Management, Indonesia)

  • Tamara Dwinda

    (Universitas Balikpapan, Faculty of Letters, Department of English Literature, Indonesia)

  • Malik Adera Rosviliana

    (Universitas Balikpapan, Faculty of Economics and Business, Department of Management, Indonesia)

  • Darma Dio Caisar

    (Universitas Mulawarman, Faculty of Economics and Business, Department of Economics, Indonesia)

Abstract

With a harmonious pattern between the workforce and the company, job satisfaction will result. East Kalimantan is very popular for its abundant natural resources, including mining. Referring to the terminology above, this paper focuses on the causality between training and rewards on employee productivity by involving job satisfaction as a mediator. The focus of this paper is one of the largest companies operating in the mining sector located in the Balikapan area. The assessment was carried out by distributing an open questionnaire to 346 employees who worked at the company. The quantitative approach is implemented in Smart-PLS, where the output is two schemes (outer model and inner model). In general, the statistic analysis finds that training and rewards have direct implications for employee job satisfaction and productivity. At the same time, job satisfaction does not have direct implications for employee productivity. Unfortunately, job satisfaction is unable to mediate the relationship between training and rewards on employee productivity. In essence, although training and rewards function in stimulating job satisfaction and employee productivity, they have not been proven optimal in encouraging employee productivity which is mediated by job satisfaction. Therefore, companies need to prioritize job satisfaction with more comprehensive proportions.

Suggested Citation

  • Ariani Misna & Tamara Dwinda & Malik Adera Rosviliana & Darma Dio Caisar, 2024. "With Job Satisfaction or Not? The Role of Job Satisfaction in the Relationship Between Training and Rewards on Employee Productivity," Economics, Sciendo, vol. 12(3), pages 293-320.
  • Handle: RePEc:vrs:econom:v:12:y:2024:i:3:p:293-320:n:1010
    DOI: 10.2478/eoik-2024-0035
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    References listed on IDEAS

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    1. Aygun Shafagatova & Amy Van Looy & Simin Maleki Shamasbi, 2023. "Uncovering the Combined Impact of Process Characteristics and Reward Types on Employees’ Job Satisfaction: A European Quantitative Study," SAGE Open, , vol. 13(1), pages 21582440231, March.
    2. Paolo Montuori & Michele Sorrentino & Pasquale Sarnacchiaro & Fabiana Di Duca & Alfonso Nardo & Bartolomeo Ferrante & Daniela D’Angelo & Salvatore Di Sarno & Francesca Pennino & Armando Masucci & Mari, 2022. "Job Satisfaction: Knowledge, Attitudes, and Practices Analysis in a Well-Educated Population," IJERPH, MDPI, vol. 19(21), pages 1-12, October.
    3. Aftab Hameed Memon & Shabir Hussain Khahro & Nafees Ahmed Memon & Zubair Ahmed Memon & Ahmed Mustafa, 2023. "Relationship between Job Satisfaction and Employee Performance in the Construction Industry of Pakistan," Sustainability, MDPI, vol. 15(11), pages 1-21, May.
    4. Barbara Sypniewska & Małgorzata Baran & Monika Kłos, 2023. "Work engagement and employee satisfaction in the practice of sustainable human resource management – based on the study of Polish employees," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1069-1100, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    training; reward; job satisfaction; employee productivity; SmartPLS;
    All these keywords.

    JEL classification:

    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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