The study provides important insights for local
government institutions that have traditionally relied on disciplinary
enforcement to improve performance, yet continue to face challenges in
productivity and public service quality.
Public Sector Performance Remains a Strategic
Issue
Human resource management plays a decisive role
in determining the effectiveness of public services. However, many government
institutions in Indonesia still struggle with low productivity, limited
innovation, and gaps between performance targets and actual outcomes.
This situation was also identified at the Brebes
Regency Education, Youth, and Sports Office, where preliminary observations
showed inconsistencies between planned targets and realized performance
indicators. These conditions prompted researchers from Universitas Peradaban
to examine internal factors influencing employee performance more closely.
Previous studies have reported mixed results
regarding the effects of work discipline and compensation. While some found
positive impacts on performance, others reported weak or insignificant
relationships. To address this research gap, the study introduced job
satisfaction as a mediating variable.
Survey Conducted Among 90 Employees
The research was carried out between August
and September 2025 using a quantitative approach. From a total population
of 115 employees, 90 respondents were selected through simple
random sampling to ensure proportional representation.
Data were collected using structured
questionnaires and analyzed with Partial Least Squares–Structural Equation
Modeling (PLS-SEM) via SmartPLS software. This approach enabled the
researchers to examine both direct and indirect relationships between work
discipline, compensation, job satisfaction, and employee
performance within a single integrated model.
Main Findings of the Study
The analysis produced several key findings that challenge conventional assumptions in public sector human resource management:
- Work discipline has no direct effect on employee performance. Compliance with rules and procedures does not automatically lead to higher performance.
- Compensation does not directly affect employee performance. Salaries and benefits alone are insufficient to drive better work outcomes.
- Compensation has a strong positive effect on job satisfaction. Employees who perceive compensation as fair report higher satisfaction levels.
- Job satisfaction positively affects employee performance. Satisfied employees demonstrate stronger motivation, commitment, and productivity.
- Job satisfaction mediates the effect of compensation on performance. Compensation improves performance only when it enhances job satisfaction.
- Job satisfaction does not mediate the effect of work discipline on performance. Discipline functions as a basic organizational requirement rather than a motivational driver.
Among all variables tested, compensation
emerged as the most influential factor in shaping job satisfaction.
Implications for Public Sector Policy
The study delivers several important messages
for public sector leaders and policymakers:
- Improving performance requires more than enforcing discipline.
- Compensation
systems must be fair, transparent, and aligned with employee contributions.
- Job satisfaction should be treated as a core indicator in human resource policies.
- Human resource management should adopt a more holistic and people-centered approach.
For local governments, the findings offer
empirical evidence that employee welfare and satisfaction are essential
components of sustainable performance improvement and better public service
delivery.
Author Profiles
Voni Febriyanti Rahayu, S.E. Researcher in Human Resource Management, Universitas Peradaban
Expertise: Public sector HR management, job satisfaction, employee performance
Yulis Maulida Berniz, S.E., M.M. Lecturer in Management and Organizational Behavior, Universitas Peradaban
Expertise: Compensation systems, job satisfaction, performance management
Source
Voni Febriyanti Rahayu, Yulis Maulida Berniz. The
Effect of Work Discipline and Compensation on Employee Performance with Job
Satisfaction as a Mediating Variable. Formosa Journal of Applied Sciences (FJAS),
Vol. 5 No. 1, hlm. 287–306. 2026
DOI: https://doi.org/10.55927/fjas.v5i1.560
URL: https://srhformosapublisher.org/index.php/fjas
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