Track: Entrepreneurship

Abstract

The current era of globalization makes it easier for foreign companies to enter Indonesia and makes business competition even tighter. With the times, companies face challenges where competition for market share is very important for the survival of a company. Employee satisfaction is a very important factor, because employees are company assets. In a company, one of the determining factors for employee loyalty and job satisfaction is often associated with the element of compensation in the form of a salary. So that some companies provide relatively high salary compensation to their employees to buy satisfaction from them. We could say, the company provides high salary compensation. This research was conducted at PT. Bakti Jaya Abadi Surabaya with the aim to analyze the effect of financial rewards and work motivation on job satisfaction and loyalty. This type of research is quantitative. The sample of this research is 87 respondents who work at PT Bakti Jaya Abadi. The analysis technique used is SEM_PLS. Data obtained from questionnaires and tested with the SmartPLS 3.0 application. The results of this study are: financial rewards and motivation have a significant effect on job satisfaction and job loyalty. Job satisfaction has a positive and significant effect on job loyalty. Financial rewards and work motivation have a significant effect on job loyalty indirectly through job satisfaction.