Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups

Abstrak

This study investigates the effect of compensation and leadership style on employee performance, with job satisfaction as a mediating variable, among digital workers in Indonesian tech startups. Using a quantitative approach, data were collected from 200 respondents through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that compensation has both direct and indirect effects on performance, while leadership style affects performance only indirectly through job satisfaction. Job satisfaction plays a significant mediating role, reflecting how psychological well-being connects compensation and leadership with performance outcomes. The model demonstrates strong explanatory power (R² = 0.643) and predictive relevance (Q² = 0.457), confirming the robustness of the proposed framework. These findings highlight the importance of integrating structural, relational, and psychological factors to improve performance in dynamic digital work environments.