THE INFLUENCE OF COMPENSATION AND JOB INSECURITY ON EMPLOYEE PERFORMANCE THROUGH JOB SATISFACTION IN A TUTORING INSTITUTION

Authors: Niksi Tri Yuliati, Tri Kartika Pertiwi & Hesty Prima Rini

ABSTRACT

The development of the education sector requires tutoring institutions to continuously maintain service quality by enhancing tutor performance. Compensation and job insecurity are two key variables that influence employee performance, especially in organizations that implement contractual employment systems. These factors may also affect employee job satisfaction, which acts as a mediating variable. This study aims to examine the effects of compensation and job insecurity on employee performance through job satisfaction among offline tutors. A quantitative research approach was applied, with data collected from 84 respondents and analyzed using the Partial Least Squares (PLS) method. The results show that compensation has a positive and significant effect on employee performance, both directly and indirectly through job satisfaction. Similarly, job insecurity significantly affects performance, indicating that under certain conditions, job insecurity can act as a motivational driver for improved performance when accompanied by high job satisfaction. This study highlights the importance of effective compensation systems and psychological well-being in improving employee performance in educational institutions.

Keywords: Compensation, Employee Performance, Job Insecurity, Job Satisfaction

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