Compensation provided by the company or business entity is usually in the form of rewards given to employees who fulfill their obligations to carry out work, compensation is given as encouragement so that employees can work better. Compensation can improve and decrease work achievement (performance), job satisfaction, and employee work motivation (Kadarisman, 2012: 48).

The results of research conducted by Nurcahyani and Adnyani (2016) showed that compensation and motivation have a positive effect on job satisfaction and employee performance. And job satisfaction mediates the effect of compensation and motivation on employee performance. Darma and Supriyanto (2017) showed that compensation affects employee satisfaction and employee performance at PT. Telkom Indonesia. Employee satisfaction can mediate the effect of compensation on employee performance. Saman (2020) revealed that compensation has a significant effect on job satisfaction, in addition compensation also has a significant effect on employee performance. Ramli (2018) showed that compensation has a positive effect on job satisfaction and employee performance, and job satisfaction does have positive implications for the performance of employees of Private Hospitals in Jakarta. Katili et al. (2016) research found exogenous variables of human capital, social capital, and organizational capital have a positive influence on endogenous variables of employee performance. But there is still a research gap in research conducted by Sari and Ardana (2016) showing that compensation has no significant negative effect on performance, and job satisfaction mediates the full effect of compensation on performance. Zufrijen (2018) showed that there was no positive and significant influence among the compensation variables on employee performance through employee job satisfaction at PT. Socfin Indonesia Medan.

LITERATURE REVIEW

Compensation

Hasibuan (2005:118) compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. Simamora (2004: 442) defines compensation as including financial rewards and non-profit services as well as benefits received by employees as part of staffing relationships. Compensation is what employees receive in exchange for their contributions to the organization.

Sedarmayanti (2011:239) argues that compensation is everything that employees receive in return for their work services. Total compensation can be classified into three main components, namely: First, basic compensation is compensation that is the amount and the time of payment is fixed, such as wages and salaries. Second, variable compensation is compensation whose amount varies and/or the time of payment is uncertain. This variable compensation is designed as a reward to employees who perform well. Including variable compensation is the payment of incentives to individuals and groups, gainsharing, bonuses, profit sharing, employee stock-ownership plans and stock-option plans. Third, the last component of total compensation is the benefit or often also called indirect compensation (indirect compensation). Included in this component are common protections, such as social security, unemployment and disability; personal protection in the form of pensions, savings, additional severance and insurance; And others.

There are several indicators of compensation presented by Umar (2007: 16) including:

1. Salary

The rewards provided by the employer to employees, whose receipts are routine and still every month even if they do not enter the work, the salary will still be received in full.

2. Incentive

Rewards or rewards are given to motivate workers to perform high, not fixed or at any time.

3. Guarantee

Guarantees are the risk of loss, loss of benefits and legal liability to third parties arising from uncertain events. With insurance, an employee, especially the honoree workforce, will not have to worry about unexpected events in the future.

Job Satisfaction

According to Timothy (2015: 49) job satisfaction is a feeling of happiness toward work, which results from an evaluation of its characteristics and serves for self-actualization. While according to Bangun (2012: 327) Job satisfaction is an individual thing, each individual has a different level of satisfaction in accordance with the system of values that apply to him. Meanwhile, according to research Rachmelya et al., (2017) Job satisfaction is an evaluation that describes a person for feeling happy or unhappy, satisfied or dissatisfied at work. If employees join an agency they will bring a set of wants, needs, desires and past experiences that combine to form work expectations. Job satisfaction indicates conformity between expectations of a person arising and the rewards provided by the work.

According to Rachmelya et al., (2017) there are 5 factors that affect job satisfaction as follows:

1. Payment.

When wages are seen as fair based on job demands, individual skill levels, and community wage standards will most likely result in satisfaction..

2. The work itself.

Employees tend to prefer jobs that provide opportunities to use their skills and skills, freedom, and feedback about how well they work.

3. Co-workers.

For most employees, work also fills the need for social interaction. Therefore it is not surprising to have a supportive coworker lead to increased job satisfaction.

4. Job promotion.

Promotion occurs when an employee moves from one job to another higher position, with his or her organizational responsibilities and level. At the time of promotion employees generally face increased demands and expertise, abilities and responsibilities. Most employees feel positive about being promoted.

5) Supervision (supervision).

Supervision has an important role in management. Supervision relates to employees directly and influences employees in doing their work. Generally employees prefer to have fair supervision, open and willing to cooperate with subordinates.

Performance

Performance is the result or overall success rate of a person over a given period of performing a task compared to various possibilities, such as standards of work outcomes, targets or objectives or criteria that have been predetermined in advance have been mutually agreed upon. Performance is basically what employees do or don't do. According to Mangkunegara (2009: 62) states that performance is the result of work in quality and quantity achieved by an employee in carrying out his duties in accordance with the responsibilities given to him. While according to Hasibuan (2005: 94) performance is the result of work achieved by a person in carrying out the tasks assigned to him based on skills, experience, earnestness and time. Employee performance is very necessary, because with this performance will be known how far the ability of the employee in carrying out the tasks charged to him. Sinambela (2012) suggested that it is necessary to determine clear and measurable criteria and set together as a reference.

According to Arristra (2016) indicators of employee performance are:

1. Quantity is a dimension that indicates the amount of work produced by an individual or group as a requirement that becomes the standard of work.

2. Quality, is a certain standard or standard to be able to produce work in accordance with the set by the company.

3. Punctuality is the dimension in which employees can complete a job in a timely manner in accordance with the characteristics of the job.

4. Presence, attendance is the belief that you will enter and return to work every day and in accordance with working hours.

5. The ability to work together, the ability to work together is the ability of employees to work together with others in completing a task together.

Effect of Compensation on Job Satisfaction

According to Handoko (2008) factors that affect job satisfaction include compensation because compensation can affect employee behavior to work more excitedly. Compensation is one of the potential tools to create job satisfaction. Hasibuan (2005:118) compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. The results of research conducted by Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) showed an influence between compensation on job satisfaction. The main priorities that need to be improved are the remuneration of basic daily needs, the structure of working wages, and the cleanliness of the workplace. Therefore, the hypotheses developed are:

H1: Compensation affects BKAD Employee Job Satisfaction as soon as Jember

Effect of Compensation on Employee Performance

Employee performance is very important for a company in order to realize the company's goals. Performance produced by employees is very important for a company in order to realize the company's goals. Employee performance can be influenced by several factors, one of which is compensation, if the employee receives compensation according to his needs it will be able to improve employee performance. In accordance with the opinion of Umar (2007:16), Sedarmayanti (2011:239), Rivai (2005: 357), compensation is something that employees receive in lieu of their service contribution to the company. This means that the compensation provided by the agency affects the results of its performance positively or negatively It depends on the situation and conditions facing the person concerned. Research conducted by Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) states that compensation has a strong influence on performance. Therefore, the hypotheses developed are:

H2: Compensation affects BKAD Employee Performance as soon as The Effect of Job Satisfaction on Employee Performance

Job satisfaction can affect performance because job satisfaction plays an important role in the development of companies to improve employee efficiency and performance (Ahmed and Uddin, 2012). Job satisfaction is a positive or negative attitude of emotional employees looking at their work whether shown in a state of fun or not (Handoko, 2008: 193). Employees who are able to use their skills and knowledge on the job will become very satisfied with the job (Berg, 1999). Employees tend to improve their performance both from the measure of quantity and quantity if employee satisfaction is met (Pramitha et al., 2012). This is in accordance with the research of Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) which shows a positive influence between job satisfaction and performance, so from the description the proposed hypotheses are:

H3: Job Satisfaction affects BKAD Employee Performance as soon as Jember

Hasibuan (2005:118) compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. Job satisfaction is a positive or negative attitude of emotional employees looking at their work whether shown in a state of fun or not (Handoko, 2008: 193). Employees tend to improve their performance both from the measure of quantity and quantity if employee satisfaction is met (Pramitha et al., 2012). This is in accordance with the research of Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) which shows a positive influence between job satisfaction and performance, so from the description the proposed hypotheses are:

H4: Job Satisfaction mediates the effect of Compensation on BKAD Employee Performance as soon as Jember.

This research is a kind of research explanation (descriptive research) with a quantitative approach. Quantitative research approach can be interpreted as a research method based on the philosophy of positivism, used to research in a particular population or sample, data collection using research instruments, quantitative or statistical data analysis, with the aim of describing and testing established hypotheses (Sugiyono, 2017, p).

The data in this study is about respondents' opinions about compensation, job satisfaction and performance obtained directly from respondents by responding to questionnaire statements. Secondary data collected is sourced from internal organization BKAD offices, an overview of the organization and data on employee numbers.

The data collection methods in this study are observation methods, interviews, and questionnaire methods. Questionnaire distributed in the form of a list of written statements to respondents about the role of job satisfaction in mediating compensation for employee performance. Measurement of the data in this study using the likert scale.

This research is populative where all members of the population in the study will be used as samples so that no sampling techniques are carried out. It is based on the researcher's desire to make generalizations with fewer errors. The total employees studied amounted to 79 people and all were contract workers who were determined directly by sk camat in their respective sub-districts.

The type of data used in this study is primary data. This research is a type of quantitative research that aims to find relationships between variables. The variables to be examined in this study are as follows:

1)Bound variables: Employee Performance

(Y)

2)Free variables: Compensation (X)

3)Mediation variable: Job Satisfaction. (Z)

Variable measurements are carried out on the Likert scale which uses the following score:

TS (Disagree) = score 1

KS (Disagree) = score 2

CS (Simply Agree) = score 3

S (Agree) = score 4

SS (Strongly Agree) = score of 5

The data analysis method used in this study uses Path.

RESEARCH RESULTS

DISCUSSION

Compensation affects job satisfaction

The results of the track analysis on the t test of the first hypothesis (H1) showed that compensation had an effect on job satisfaction by looking at the level of significance of 0.000. The relationship indicated by the regression coefficient is positive meaning that the higher compensation, the higher the job satisfaction will increase (H1 received).

According to Handoko (2008) factors that affect job satisfaction include compensation because compensation can affect employee behavior to work more excitedly. Compensation is one of the potential tools to create job satisfaction. Hasibuan (2005:118) compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. This variable compensation is designed as a reward to employees who perform well. Including variable compensation is the payment of incentives to individuals and groups, gainsharing, bonuses, profit sharing and stock-option plans. Third, the last component of total compensation is the benefit or often also called indirect compensation (indirect compensation).

The results of this study are in line with previous research conducted by Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) showing an influence between compensation on job satisfaction. The main priorities that need to be improved are the remuneration of basic daily needs, the structure of working wages, and the cleanliness of the workplace.

Compensation affects employee performance

The results of the track analysis on test against the second hypothesis (H2) showed that compensation had an effect on employee performance by looking at the level of significance of 0.012. The relationship shown by the regression coefficient is positive meaning that the better compensation, the better employee performance will increase (H2 received).

Employee performance is very important for a company in order to realize the company's goals. Performance produced by employees is very important for a company in order to realize the company's goals. Employee performance can be influenced by several factors, one of which is compensation, if the employee receives compensation according to his needs it will be able to improve employee performance. Compensation is an important component in relation to employees. In accordance with the opinion of Umar (2007:16), Sedarmayanti (2011:239), Rivai (2005: 357), compensation is something that employees receive in lieu of their service contribution to the company. This means that the compensation provided by the agency affects the results of its performance positively or negatively, depending on the situation and conditions faced by the person concerned.

The results of this study are in line with previous research conducted by Mahmud (2013) stating that Compensation has a positive effect on Employee Performance. Joudeh's research (2018) states that Compensation has a positive effect on Employee Performance. Setyaji Research (2018) states that Compensation has a positive effect on Employee Performance.

Job Satisfaction affects Employee Performance

The results of the track analysis on test t against the third hypothesis (H3) showed that Job Satisfaction affects employee performance by looking at the level of significance of 0.000. The relationship shown by the regression coefficient is positive meaning that the higher the Job Satisfaction, the higher the Employee Performance will increase (H3 received).

Job satisfaction can affect performance because job satisfaction plays an important role in the development of companies to improve employee efficiency and performance (Ahmed and Uddin, 2012). Job satisfaction is a positive or negative attitude of emotional employees looking at their work whether shown in a state of fun or not (Handoko, 2008: 193). Employees who are able to use their skills and knowledge on the job will become very satisfied with the job (Berg, 1999). Employees tend to improve their performance both from the measure of quantity and quantity if employee satisfaction is met (Pramitha et al., 2012).

The results of this study are in line with previous research conducted by Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) which showed a positive influence between job satisfaction and employee performance.

Job Satisfaction mediates influence Compensation for Employee Performance

The results of the track analysis on indirect effect to the fourth hypothesis (H4) showed that Job Satisfaction mediated the effect of Compensation on Employee Performance on Employee Performance by looking at the regression coefficient value of 0.170 or 17%. The relationship shown by the regression coefficient is positive meaning that the higher the Job Satisfaction mediates the effect of Compensation then employee performance will increase (H4 received).

Hasibuan (2005:118) compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. Job satisfaction is a positive or negative attitude of emotional employees looking at their work whether shown in a state of fun or not (Handoko, 2008: 193). Employees tend to improve their performance both from the measure of quantity and quantity if employee satisfaction is met (Pramitha et al., 2012).

The results of this study are in line with previous research conducted by Nurcahyani and Adnyani (2016), Darma and Supriyanto (2017), Saman (2020), Ramli (2018), Hidayah (2016), Lam (2020), Khalid (2020), and Khan (2021) which showed a positive influence between job satisfaction and employee performance.

CONCLUSIONS AND SUGGESTIONS

Conclusion

Based on the results of the analysis and discussion that the researchers have explained, it can be concluded as follows:

Track testing results on the effect of Compensation on Job Satisfaction showed a significant positive influence. This proves that good compensation will increase job satisfaction. Track testing results on the effect of Compensation on Employee Performance show a significant positive influence. This proves that good compensation will improve employee performance. And Track testing results on the effect of Price on Job Satisfaction show a significant positive influence. This proves that high Job Satisfaction will improve Employee Performance.

Suggestion

Practitioner Advice

Advice for practitioners that can be given based on the results of the study is as follows:

1. BKAD as soon as Jember should pay attention to the variables of Job Satisfaction as an intervening to BKAD Performance as soon as Jember so that lecturers are more active in working and able to achieve the targets that have been determined.

2. For Academics, this study provides an overview of objects and variables, the objects used are BKAD as jember, variables used namely Compensation, Job Satisfaction, and Employee Performance of BKAD as jember that can be used as additional knowledge for interested parties.

For the Next Researcher

Suggestions for further researchers that can be given based on the results of the study are as follows:

1. For further researchers, it is better to use different objects so that the results of research on BKAD Employee Performance as soon as Jember can be generalized for example in BKAD in other districts.

2. For further researchers, it is better to disseminate questionnaires using technology through questionnaires with link.bit.ly to be more time efficient and paperless.

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