The Influence of ERP and Mediated Compensation Job Satisfaction towards Employee Performance in Karanganyar Company

Abstract

In this research study, the aim is to analyze the influence of Enterprise Resource Planning (ERP) and non-financial compensation on employee performance and job satisfaction as a mediating variable in companies in Karanganyar. Employee performance is one of the factors that is quite crucial in achieving company goals, which is influenced by the application of information technology and the reward system implemented. ERP as an integrated management system based on information technology is believed to be able to increase efficiency and quality of work, while adequate compensation can increase motivation as well as the performance of employees who are quite satisfied. This research study chose to use a quantitative approach using a purposive sampling method by distributing questionnaires to several employees, some at the Karanganyar company. Data analysis in this research was carried out using a multiple linear regression model and also a mediation test to determine the role of job satisfaction in the relationship between compensation and employee performance. The results of this research show that ERP has a positive and significant effect on employee performance, which in turn compensation has a positive and significant effect on employee performance which is mediated by job satisfaction. Thus, job satisfaction is proven to mediate the relationship between compensation and employee performance. These findings emphasize the importance of integrating information systems and providing fair and appropriate compensation in an effort to increase overall employee satisfaction and performance.