Susan Sugasuga, Sufice N. C. Yumame, Jeremy M. Souhuwat, Stivani Tangkulung
Human resources are a crucial asset for a company, where job satisfaction is a key determinant of performance, and compensation acts as one of its key driving factors. This study aims to determine and analyze the effect of compensation on employee job satisfaction at PT. Telkom Indonesia, Sorong Branch. The method used in this study is a quantitative associative causal approach, with a final sample of thirty-five employees who completed questionnaires. Data were analyzed empirically using instrument tests, simple linear regression, partial t-tests, and coefficients of determination. The research findings demonstrate that compensation has a positive and significant effect on employee job satisfaction, with the calculated t-value far exceeding the statistical t-table limit. Furthermore, the contribution of compensation in explaining variations in job satisfaction levels is also very strong and dominant. The implications of this study indicate that company management needs to conduct regular evaluations and formulate fair and appropriate compensation policies, particularly regarding the transparency of unit bonuses and field incentives. This step is crucial for maintaining psychological motivation, maintaining employee loyalty, minimizing the risk of job turnover, and optimizing the productivity of telecommunications services in the Sorong area.