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The Role of Job Satisfaction in Mediating Self-Efficacy and Income Levels on Employee Performance at Aceh Reintegration Agency Secretariat
Asnawi1, Sulaiman2
Developement of Economics, Economics and Business Faculty, Universitas Malikussaleh1
Business Administration, Social and Political Sciences Faculty, Universitas Al Muslim2
Email: asnawi.fe@unimal.ac.id1, naraseuki.leman@gmail.com2.
ABSTRACT
This study examined the effect of self-efficacy and income levels on
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job satisfaction and employee performance, the effect of job satisfaction on employee performance, and the mediation effect of job satisfaction
between self-efficacy and income levels on employee performance at the Aceh Reintegration Agency Secretariat. The samples used were 115 respondents taken using the Census sampling technique. The analytical tool used was path analysis with the help of the SEM method (structural equation modeling) using Amos. The results indicated that self-efficacy and income levels positively and significantly influenced job satisfaction. Self-efficacy positively and significantly influenced employee performance, while income level did not influence
employee performance, and job satisfaction affected employee performance. The mediation effect analysis revealed that job satisfaction partially mediated the effect of self-efficacy on employee performance and job satisfaction
cannot mediate income levels on employee performance, because it cannot meet the terms or conditions of mediation.
Keywords: Self-efficacy, income level,
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job satisfaction, and employee performance.
INTRODUCTION
In general, there is a performance crisis in every public service because there is a need to produce maximum service (Madinah et al., 2015). In improving and realizing the quality and high-performance resources, human resource management is indispensable (Medin et al., 2013). If we consider new organizations as one of the key innovations of this century, organizational success depends on the efficient use of resources and a combination of effective organizational strategies (Reza Alami et al., 2015). Performance is the key driver of the reputation of the organization by the Aceh government on employees to create and provide satisfactory services according to the wishes of the community. One way is by influencing perceptions and attitudes and behavior of employees towards the organization. Therefore, public organizations must have a high commitment (Iis & Adam, 2018). Several factors that can affect employee performance include job satisfaction and work discipline (Sari & Hadijah, 2016). Job satisfaction plays a significant role in human life because it can affect both individuals and organizations (Stanton et al., 2002).
Job satisfaction is an important topic because it relates to the physical, mental well-being of employees, and their implications for work-related behaviors, such as productivity, absenteeism, or employee turnover. Job is a crucial
aspect of people's lives because most employees spend a large part of their
life at work.
An understanding of the factors that influence job satisfaction is relevant to
improving the welfare of many people (Oshagbemi, 1999). Hanaysha & Tahir (2016) mention that organizations must invest in developing programs or activities that can affect employee job satisfaction because higher levels of job satisfaction can improve performance in the long term.
Apart from job satisfaction, the level of income is also notable. For integration between organizational goals and employee goals, it is necessary to know the needs of each party. The organization needs to ensure the fulfillment of employees' needs through their work. If employees have met all their necessities, they will achieve job satisfaction. In the literature, several empirical studies have investigated the relationship between income and job satisfaction. Ward & Sloane, (2000) concluded that men, who consider themselves underpaid, are less satisfied in the Scottish academic labor market. Using data from 5,000 British workers, Clark & Oswald, (1996) found that satisfaction depends on income relative to a comparison or reference level. They used the comparative income variable measured as the difference between actual and predicted income using the income equation, and found that the higher the individual's income relative to the predicted income, the higher the job satisfaction. Bakan et al., (2014), income levels positively and significantly influenced job satisfaction.
In addition to income levels, self-efficacy also needs to be maintained. Cherian & Jacob, (2013) state that self-efficacy positively influence employee performance. The significant amount of self-confidence usually affects the organizational behavior of skeptical professionals.
Self-efficacy refers to personal beliefs or individual beliefs in their ability to
perform determined tasks (Yusuf, 2011). Supporting factors such as cultural factors through values, beliefs, and self-regulatory processes influence self-efficacy, which serve as a source of self-efficacy assessment and also as a consequence of beliefs in self-efficacy (Bandura, 1997).
The phenomenon of employee performance at the Aceh Reintegration Agency Secretariat appears on the low-quality performance due to incomplete work progress such as Life Skill training for Former Combatants of the Free Aceh Movement (GAM), Former Political Prisoners (Tapol) and Political Prisoners (Napol) Aceh and Conflict Impact Communities. Other than that, the quantity of employees' works at the institution is not maximal because life skills training activities for former GAM Combatants, Aceh Political Prisoners, and Conflict Victim Communities are unevenly incomplete. Besides, there is a lot of work that employees cannot complete on time.
The phenomenon of employee job satisfaction at the Secretariat of the Aceh Reintegration Agency shows that some employees are less determined and resilient in completing work, and they are not motivated to work when serving the community. Besides, regarding promotion opportunities for employees who are closest to the leadership, other employees do not get the same chances, and some employees feel that promotion is not measured based on ability or performance but relational factors.
Besides, the level of employee income at the Aceh Reintegration Agency Secretariat is also low and a perceived cut in employee income, which causes a decrease in employee job satisfaction and erratic policy changes, especially leadership changes negatively influence employee performance. Related to the phenomenon of self-efficacy, some employees feel less confident about their ability to deal with uncertain situations and panic when problems arise. Besides, the ability to motivate employees to take the necessary actions to achieve a result is low, and it just seems to be running in place. Some employees tend to be pessimistic in completing work progress or targets set by the leader of the institution at a critical time, even though the task has become a collective burden in teamwork. The problem with some employees is that they have low confidence in their ability to solve problems that arise at the end of the month and the end of the year, which tends to be incomplete. Based on the above background, the researchers aim to examine the Effect of Self-efficacy and Income Level on Employee Performance at the Aceh Reintegration Agency Secretariat with
Job Satisfaction as an Intervening Variable.
LITERATURE REVIEW
Performance
Performance is a process that refers to and is measured over a certain period under the provisions or agreements (Edison, 2016). Besides, Mahmood et al., (2018) explained that employee performance is a crucial element in an organization. The ultimate goal is to achieve excellent employee performance, which will result in success, and have an extensive impact on organizational efficiency.
Meanwhile, Sinambela et al. (2012) argued that employee performance means an employee's ability to perform particular skills. Employee performance is very vital because it is a measure of the employee's ability to carry out the tasks assigned to him. For this reason, it is necessary to determine clear and measurable criteria as a reference. Meanwhile, Moeheriono (2012) mentioned that performance is a description of the achievement level of the implementation of an activity program or policy to realize the goals, objectives, and vision and mission of the organization stated in the strategic planning of an organization. According to Akdon (2011) performance is the extent to which a person implements organizational strategy to achieve goals related to individual roles by demonstrating competencies relevant to the organization. Performance is a multi-dimensional concept that includes three aspects, namely attitude, ability, and accomplishment. Smith & Goddard, (2002) defined high performance as something needed in the study of workload, working hours, and cost suitability. The performance literature focuses on two factors; the importance of high work performance; and finding the best way to maximize employee performance.
Job Satisfaction
Job satisfaction is the individual's way of feeling on his job, which results from the individual's attitude towards various aspects of the job (Suwatno and Priansa, 2011). Another opinion states that job satisfaction is a statement of personal feelings towards work and influence organizational operations (Chatzoglou et al., 2011). But in general, the term job satisfaction is often used. To get clearer definition of job satisfaction, some experts have defined job satisfaction.
Ardana (2012) stated
that low job satisfaction can cause various negative impacts such as decreased work discipline, decreased enthusiasm and passion
for work, and frequent mistakes in working, less work productivity. Meanwhile, Bakotić & Fiskovića, (2013) explained that job satisfaction appears on the way how employees enjoy the process of carrying out work. Generally, job satisfaction is a sense of comfort and a positive relationship between fellow employees (Hasibuan, 2012).
Self-Efficacy
Self-efficacy is a feeling of adequacy, efficiency, and ability to cope with life (Schultz, 2013). Self-efficacy refers to
a person's beliefs about his abilities to learn or take actions at a certain level. Meanwhile, according to Herkulana & Aminuvati, (2014) self-efficacy is a person's belief in his ability to solve a problem to achieve particular expected results. Self-efficacy is the primary key that a person has in what he does (Novferma, 2016).
Income Levels
In the Economic Dictionary, income is money that a person receives from a company in the form of salaries, wages, rent, interest, profit, and so on, along with unemployment benefits, pension payments, and so on (Cristopher, 2009). Another opinion states that per capita income can be used to describe the standard of living of a country from year to year. An increasing per capita income is a sign that the average standard of living of the population has increased. Differences in income levels may reflect differences in quality of life. Countries with high per capita income have a better quality of life than countries with low per capita income (Susana, 2006). Meanwhile, according to BPS and UNDP in the Indonesia Human Development Report 2004, the adjusted real GDP per capita indicator (adjusted real GDP per capita) is used as a measure of this component because there are no better indicators for comparison among countries. It is in line with the opinion of Sukirno (2004) GDP per capita can provide an overview of the average ability of the population of a country to shop and buy goods and services, and is also useful as a comparison material in showing differences in the level of prosperity in a state compared to other countries.
DATA & METHODS
Data
Data employed in this study are obtained from the Aceh Reintegration Agency. This study used a Census sampling technique because the sampling was carried out for all the population, namely 115 respondents.
Table 1: Variable Operational Definitions
NoVariableIndicatorScale1Self-Efficacy
(X1)Consisting of experience of success
Experiences of other individuals
Verbal persuasion
Physiological states
(Lunenburg, 2011)Likert2Income Levels
(X2)Very high-income group (the average income is more than Rp. 3,500,000.00/month)
The high-income group (the average income is between Rp. 2,500,000.00 to Rp. 3,500,000.00/month)
Medium income group (the average income is between Rp. 1,500,000 to Rp. 2,500,000.00/month)
Low-income group (the average income is below Rp. 1,500,000.00/month)
(Indrianawati & Soesatyo, 2015)Likert3Job Satisfaction
(Z)Motivation
Physical condition
Job design
Job promotion
(Sugiyarti, 2012)Likert4Employee
Performance
(Y) Consisting of quality
Quantity
Timeliness
Cost-effectiveness
Need for supervision
Interpersonal impact.
(Falilah & Wahyono, 2019)Likert
Methods
Each data must show that all variables have a Construct Reliability (CR) value higher than 0.70 and a Variance Extracted (VE) value higher than 0.5 required, besides all latent constructs have good discriminant validity. It appears on the square root of the VE of each latent construct that the value must be higher than the correlation value. The construct reliability test is very important in a study to be able to process further analysis. The answers to each instrument using a Likert scale have a gradient from very positive to very negative, including in the form of a range from 1 (strongly disagree) to 5 (strongly agree).
All returned questionnaires were tested using SPSS version 16, then using the SEM analysis technique. The SEM analysis test consisted of validity tests of exogenous and endogenous constructs, and validity tests of the instrument using Confirmatory Factor Analysis (CFA) for each construct by looking at the Loading Factor value of each indicator and the results of each statement item have a value of ≥ 0.6. Furthermore, the construct reliability test based on the data showed that all variables had a Construct Reliability (CR) value higher than 0.70 and a Variance Extracted (VE) value higher than the required 0.5. Besides, all latent constructs had good discriminant validity, and the results showed that the square root of the VE of each latent construct had a higher value than its correlation value.
After passing the SEM analysis, the SEM Assumption test was conducted. SEM analysis required several tests to see whether the entire instrument has met the required criteria. The four instrument tests consisted of sample size, data normality, data outlier, multicollinearity, and singularity. After all of the tests have passed, a full SEM model test was carried out on all exogenous and endogenous variables that had been combined into one and intact through variance and covariance matrices.The full model is also called the research model.
RESULTS AND DISCUSSION
Results
The results of data processing using Amos can bee seen in Figure 1.
Figure 1: CFA Full Model Construct before Modification
Furthermore, the model suitability tests appear in Table 2 below:
Table 2: Conformity Index Tests for Structural Equation Model of Full Model before Modification
Goodness of Fit IndexCut-off ValueAnalysis ResultsModel EvaluationX2-Chi-SquareExpected Low160.707GoodProbability≥ 0.050.002MarginalGFI≥ 0.900.854MarginalAGFI≥ 0.900.802MarginalCFI≥ 0.950.947MarginalTLI≥ 0.950.936MarginalCMIN/DF≤ 21.4GoodRMSEA≤ 0.080.061Good
Table 2 above shows the final results of the confirmatory factor analysis full model. In general, the constructs used in this research model consists of confirmatory analysis (CFA), regression values between constructs and the goodness of fit test (X2-Chi-Square, CMIN/DF, and RMSEA) have met the required criteria, except Probability, GFI, AGFI, CFI, and TLI are not good enough. Therefore, it is necessary to modify it.
Figure 2: CFA Full Model Construct After Modification
Furthermore, the model suitability tests are in Table 3 below:
Table 3: Conformity Index Test for Structural Equation Model of Full Model after Modification
Goodness of Fit IndexCut-off ValueAnalysis ResultsModel EvaluationX2-Chi-SquareExpected Small111.722GoodProbability≥ 0.050.358GoodGFI≥ 0.900.900GoodAGFI≥ 0.900.856MarginalCFI≥ 0.950.995GoodTLI≥ 0.950.993GoodCMIN/DF≤ 21.04GoodRMSEA≤ 0.080.020Good
Figure 2 and Table 3 above show the final results of the full model confirmatory analysis. In general, all the constructs used in forming this research model consisting of confirmatory analysis (CFA), regression values between constructs and goodness of fit tests (X2-Chi-Square, probability, GFI, CFI, TLI, CDMIN/DF, and RMSEA ) has met the required criteria, except for AGFI which is at an almost good value, then the model can be concluded that it is fit and supports the data, so that the model is acceptable and suitable for use in this study (Byrne, 2016). The direct, indirect, and total effects appear in Table 4:
Table 4: Direct, Indirect, and Total Effect Tests
Self-EfficacyIncome LevelsJob SatisfactionEmployee PerformanceDirect EffectsJob Satisfaction0,3280,22300Employee Performance0,5660,0450,4400Indirect EffectsJob Satisfaction0000Employee Performance0,1450,09800Total EffectsJob Satisfaction0,3280,22300Employee Performance0,710,1440,4400
The results of testing the effect of mediating (intervening) the relationship of self-efficacy with
employee performance mediated by job satisfaction
appear in Figure 3:
Figure 3: Mediation Effect Tests Results
Figure 3 shows that the coefficient of path A, path B, and path C are significant, while the significance value of path C' is significant. The results of this study state that variable M is a partial mediation variable. After entering variable M, the influence of variable X on Y decreases to zero (C' = 0), or the effect of variable X on Y, which is significant (before entering variable M) becomes significant after entering variable M into the regression equation model.
The results of testing mediation effect (intervening) of the relationship between the income level
and employee performance mediated by job satisfaction
appear in Figure 4:
Figure 4: Mediation Effect Tests Results
Figure 4 explains that the coefficient of path A and B are significant, but path C is not significant. It concludes that job satisfaction does not qualify as a mediating variable. So, the seventh hypothesis (H7) is rejected.
Table 5: Hypothesis Test Results
NoHypothesis StatementsEstimate Std.S.E.CRPConclusions1Self-efficacy influence
positively and significantly on Job Satisfaction at the Aceh Reintegration Agency Secretariat0,3280,1202,9350,003The hypothesis is accepted the data supports the model2Income levels influence positively and significantly on Job Satisfaction at the Aceh Reintegration Agency Secretariat0,2230,1112,0810,037The hypothesis is accepted the data supports the model3Self-efficacy influence positively and significantly on
Employee Performance at the Aceh Reintegration Agency Secretariat0,5660,1115,2180,001The hypothesis is accepted the data supports the model4Income levels donot significantly influence Employee Performance at the Aceh Reintegration Agency Secretariat0,0450,0790,5680,570The hypothesis is rejected, and the data do not support the model.5Job satisfaction influence positively and significantly on Employee Performance at the Aceh Reintegration Agency Secretariat0,4400,0964,4110,001The hypothesis is accepted the data supports the model6Job satisfaction fully mediates between Self-efficacy and Employee Performance at the Aceh Reintegration Agency Secretariat0,1450,0612,3470,018The hypothesis is accepted the data supports the model7Job satisfaction cannot mediate between income levels and Employee Performance at the Aceh Reintegration Agency Secretariat0,098---The hypothesis is rejected, and the data do not support the model.
Discussion
This section discusses the results obtained through the SEM model analysis. Besides, this section also emphasizes testing hypotheses to obtain answers to related hypotheses and theories as well as empirical evidence from previous research. The analysis results explanations are as follows:
The effect of self-efficacy on job satisfaction of
employees at the Aceh Reintegration Agency Secretariat
Self-efficacy significantly influenced employees job satisfaction at the Aceh Reintegration Agency Secretariat, as shown in Table 4 with the standardized estimate coefficient value of 0.120 with a CR-critical ratio value much higher than C.R. The minimum required is 1.96 (2.935 1.96), and the probability is lower than the error level (alpha) α = 0.05 (0.003 0.05).
Thus, it can be stated as significant so that the hypothesis is rejected. The results of this study accepted the first hypothesis and indicated that self-efficacy positively and significantly influenced job satisfaction. It means that if self-efficacy in this agency is good, job satisfaction will increase.
The results of this study reinforce the results of previous research conducted by Lai & Chen (2012), which stated that self-efficacy positively influenced job satisfaction. Also, Law & Guo (2015) discussed the effect of self-efficacy on job satisfaction, and the results showed that self-efficacy positively influenced employee job satisfaction.
The effect of income levels on job satisfaction of
employees at the Aceh Reintegration Agency Secretariat.
There was a significant influence between income levels and job satisfaction at the Aceh Reintegration Agency Secretariat (see table 4) where the standardized estimate coefficient value was 0.111 with a CR-critical ratio value far higher than the required minimum CR of 1.96 (2.081 1.96), and the probability was lower than the error rate (alpha) α = 0.05 (0.037 0.05). Thus, the hypothesis was rejected. It accepted the second hypothesis and stated that income levels positively and significantly influenced job satisfaction. It shows that if the income levels at this institution are good, job satisfaction will increase.
The results of this study
reinforce the results of previous research
conducted by Mehrad & Fallahi (2015) and proved that income levels significantly influenced job satisfaction. Besides, the results reject the research by O'Donnell & Broderson's (2015) which indicated that income levels did not influence job satisfaction.
The effect of self-efficacy on employee performance at the Aceh Reintegration Agency Secretariat
Self-efficacy influenced the performance of employees at the Aceh Reintegration Agency Secretariat as mentioned in table 4 with a standardized estimate coefficient value of 0.111, CR-critical ratio value far higher than the required minimum CR of 1.96. (5,218 1.96), and the probability was lower than the error rate (alpha) α = 0.05 (0.001 0.05). Thus, the hypothesis was rejected.
The results of this study accepted the third hypothesis and stated that self-efficacy positively and significantly influenced employee performance. It means that if self-efficacy is good, it will improve employee performance. The results of this study support previous research conducted by Lai & Chen (2012) and indicated that there was a positive and significant effect of self-efficacy on employee performance. Besides, Gunawan et al. (2017) stated that self-efficacy significantly affected employee performance.
The effect of income levels on employee performance at
the Aceh Reintegration Agency Secretariat
Income levels influenced the performance of the Aceh Reintegration Agency Secretariat employees, as mentioned in table 4. This effect was evidenced by the standardized estimate coefficient value of 0.079 with a CR-critical ratio value much higher than C.R. The minimum required was 1.96 (0.568 1.96), and the probability was higher than the error rate (alpha) α = 0.05 (0.570 0.05). Thus, the hypothesis was accepted, which stated that income levels influenced employee performance. It refuses the results of previous research conducted by Rowlingson (2011), which claimed that income levels had a positive impact, such as in motivating people to work hard. It can lead to a more efficient and faster-growing economy that can benefit all. Also, these findings support previous research conducted by Wilkinson & Pickett (2009) and suggest that income inequality can be dangerous because it places people in a hierarchy that increases status competition and causes stress, and leads to poor health and other bad outcomes.
The effect of job satisfaction on employee performance
at the Aceh Reintegration Agency Secretariat
Job satisfaction influenced employee performance at the Aceh Reintegration Agency Secretariat as shown in table 4. This influence was evidenced by the standardized estimate coefficient value of 0.096 with a CR-critical ratio value much higher than C.R. The minimum required was 1.96 (4.411 1.96), or the probability was lower than the error rate (alpha) α = 0.05 (0.001 0.05), then it is declared significant. So, the hypothesis was rejected and shows that
job satisfaction positively and significantly influenced employee performance. It means that if job satisfaction at this agency is good, then employee performance will increase.
The findings of this study support previous research conducted by Khan et al. (2012), the results stated that job satisfaction significantly influenced employee performance.
Also, Bakan et al. (2014) stated
job satisfaction positively and significantly
influened employee performance.
Job satisfaction mediated self-efficacy with employee performance at the Aceh Reintegration Agency Secretariat
The results of this study indicated that employee performance was not only directly affected by self-efficacy, but can also be influenced by job satisfaction. Whether job satisfaction act as a mediating variable to affect indirectly between self-efficacy and employee performance or not appears on the test results regarding the theory of Baron & Kenny (1986) with the Sobel test tool developed by Preacher & Hayes (2004). Baron & Kenny (1986) explain the simple analysis procedure of mediator variables through regression. In essence, according to Baron & Kenny (1986) requires that a variable can be said to be a mediator if the results are: (1) Path A: significant (2) Path B: significant (3) Path C: significant (4) Path C': insignificant. To be expressed as a mediator, the X to Y relationship in the third equation must be insignificant (zero), or it is called full mediation. But if equations 1 through 3 are fulfilled, but equation 4 is not, or it is called partial mediation. So, the sixth hypothesis (H6) is accepted.
According to the theory of Baron & Kenny (1986), the probability value criterion that should be on path C' was insignificant. When the value of this criterion is exceeded, full mediation occurs. Meanwhile, the probability value of path C' was significant 0.05, indicating that the intervening variable had a partial mediation on the exogenous variable. Calculations using the Sobel test an interactive calculation tool for mediation tests showed that the probability value of path C' wa significant (0.018). It revealed that the job satisfaction partially mediated between self-efficacy and employee performance in Aceh Reintegration Agency Secretariat.
Job satisfaction mediates income levels with employee performance at the Aceh Reintegration Agency Secretariat
Employee performance was not only directly affected by income levels, but also job satisfaction. The role of job satisfaction as an intermediary variable to affect directly on income levels and employee performance can be seen on the test results regarding the theory of Baron & Kenny (1986) with the single test tool developed by Preacher & Hayes (2004). Figure 4 shows that the coefficient of path A and B were significant, and path C was not significant. Because the probability of path C was insignificant, it means that job satisfaction does not meet the requirements as a mediating variable, so the seventh hypothesis (H7) was rejected.
CONCLUSIONS
Based on the research objectives described previously, there are several research conclusions as follows:
Self-efficacy positively and significantly influenced employee job satisfaction at the Aceh Reintegration Agency Secretariat because employee self-efficacy has been good so far as seen from a significant value of 0.003.
The results of the study stated that self-efficacy had a significant effect on employee
job satisfaction at the Aceh Reintegration Agency Secretariat.
Income levels positively and significantly influenced employee job satisfaction at the Aceh Reintegration Agency Secretariat because the income levels of employees have been good with a significant value below 0.037. The results showed that income levels significantly influenced employee job satisfaction at the Aceh Reintegration Agency Secretariat.
Self-efficacy positively and significantly influenced
the performance of employees at the Aceh Reintegration Agency Secretariat with the significant value of 0.001. The results of the study indicated that self-efficacy significantly influenced employee performance at the Aceh Reintegration Agency Secretariat.
Income levels had no significant effect on employee performance
at the Aceh Reintegration Agency Secretariat because with the significant value of 0.570. The result stated that income levels did not affect employee performance at the Aceh Reintegration Agency Secretariat.
Job satisfaction positively and significantly
influenced employee performance at the Aceh Reintegration Agency Secretariat. It means that if job satisfaction is sufficient, then employee performance will increase. The job satisfaction applied so far to employees at the Aceh Reintegration Agency Secretariat have been very sufficient with a significant value of 0.001, which means that job satisfaction has a very significant effect on improving employee performance at the Aceh Reintegration Agency Secretariat.
Job satisfaction had a mediating effect through partial mediation (partial mediation) on self-efficacy with the performance of employees at the Aceh Reintegration Agency Secretariat. The results of calculations using the Sobel tests showed that the probability value of path C' was significant (0.018), which means that job satisfaction mediates partially (partial mediation) between self-efficacy and performance of employees at the Aceh Reintegration Agency Secretariat.
Job satisfaction cannot mediate between income levels and employee performance at the Aceh Reintegration Agency Secretariat. The coefficient of path A and B were significant, and path C was not significant. Because the probability of path C was insignificant, it indicates that job satisfaction did not meet the requirements as a mediating variable (Preacher & Hayes, 2004).
IMPLICATIONS
Every research must be able to contribute or have implications both theoretically for the development of science and practice or managerial policy. This research has attempted to provide theoretical and practical contributions.
Theoretical Implications
The results of this study provides several theoretical implications as follows:
Self-efficacy and income levels positively and significantly influenced
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job satisfaction and employee performance.
It is in line with most of the results of previous studies, which found a positive and significant influence of self-efficacy and income levels on job satisfaction so that this study has strengthened the theoretical framework related to the effect of income levels and self-efficacy on job satisfaction.
Income level did not influence employee performance. Thid findings can enrich the theoretical framework or theoretical gaps related to the effect of income levels on employee performance.
Self-efficacy positively and
significantly influenced employee performance. It is in line with most of the previous studies, which mentioned that self-efficacy positively and significantly influenced employee performance. This study has strengthened the theoretical framework related to the effect of self-efficacy on employee performance.
Job satisfaction positively and significantly influenced employee performance. It is in line with most of the results of previous studies, which find a positive and significant influence of job satisfaction on employee performance.
Based on the results of
data analysis, job satisfaction partially mediated the relationship between self-efficacy and
employee performance, and job satisfaction
cannot mediate the relationship between income levels and employee performance.
Practical Implications
This study also found that self-efficacy and income levels positively and significantly influenced job satisfaction. It means that the better self-efficacy and income levels, the more job satisfaction would be. The consequences of self-efficacy and income levels are to increase job satisfaction.
Self-efficacy had
a positive and significant effect on employee performance. It means that the better self-efficacy, the increase in employee performance, and high self-efficacy can improve employee performance.
Income levels did not influence employee performance. It means that the better income level does not affect the increase in employee performance.
Job satisfaction positively and significantly influenced employee performance of the Aceh Reintegration Agency Secretariat. In other words, higher job satisfaction has an impact on the
higher employee performance of the Aceh Reintegration Agency Secretariat. These findings suggest that job satisfaction is something that must be considered by leaders to employees to improve employee performance.
For the Aceh Reintegration Agency Secretariat that wants to improve employee performance, it can be pursued by directly increasing employee self-efficacy, not by playing a mediating role. It means that the Head of the Aceh Reintegration Agency Secretariat must pay full attention to improve employee performance through the direct effect of self-efficacy because its effect is more significant while the partial mediation effect is considered weaker.
This study found that job satisfaction cannot mediate the relationship between income levels and employee performance because they do not pass the mediation requirements.
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