Compensation effects on job satisfaction and performance

Abstract

This study examines the effects of air traffic control (ATC) officers’ compensation on their job satisfaction and performance, in PT Angkasa Pura 1 (Persero). Using an explanatory-research method and stratified random sampling, data were collected from 208 ATC officers, at 13 branch offices. Their education ranging from high-school diplomas to postgraduate degrees, said ATC officers perform within four different work units: executive, functional, operational monitoring and structural. Using structural equation modeling (SEM) analysis, the empirical research results show that increasing ATC officers’ compensation enhances their job satisfaction and performance, but increasing their job satisfaction can actually decrease their performance. Synoptically, ATC officers’ compensation can have significantly positive effects on their job satisfaction and performance, yet relying on job satisfaction alone can have significantly negative effects on their performance.