Objective - The purpose of this study is to identify the relationship between compensation and work environment on performance through job satisfaction.

Methodology/Technique - The population in this study is 150 employees from a State-Owned Bank. The sampling method uses census techniques so that the number of samples used is 150 employees. The research data was collected using a questionnaire, which is then analyzed using a path analysis technique (SPSS software) to examine the relationships among the constructs, which are: compensation, work environment, job satisfaction and performance.

Findings - The results of this study indicate that compensation has a significant relationship between job satisfaction, and the work environment has a significant relationship on job satisfaction. The results also prove that compensation has no relationship on performance, work environment has a significant relationship on performance, and job satisfaction has a significant relationship on performance. The results of this study also indicate that as an indirect effect, compensation has a significant relationship on performance through job satisfaction and the work environment has a significant relationship on performance through job satisfaction.

Novelty - Previous studies have been carried out in many western countries, raising doubts about generalizations in the same research results in developing countries such as Indonesia. Therefore, the novelty in this study is carried out in the context of developing countries, especially in State-Owned Banks in West Kalimantan, Indonesia.

Type of Paper - Empirical.

Keywords: Compensation; Work Environment; Job Satisfaction; Performance

JEL Classification: L22, M12, M19.

URI: http://gatrenterprise.com/GATRJournals/JMMR/vol6.2_2.html

DOI: https://doi.org/10.35609/jmmr.2021.6.2(2)

Pages 110 – 116