Job Satisfaction as a Mediator between Leadership, Work Environment, and Well-being on Employee Performance in the Manufacturing Sector

Abstract

Over the past three years, Company X, a cardboard manufacturing company, has experienced a significant increase in both the number of partners and production volume. However, this growth has not always been accompanied by optimal employee performance, highlighting the need for effective human resource management strategies. This study aims to analyze the role of job satisfaction as a mediator in the influence of leadership, work environment, and well-being on employee performance. The research sample consisted of 96 permanent employees of Company X. The exogenous variables analyzed include leadership, work environment, and well-being, with job satisfaction as the intervening variable and employee performance as the endogenous variable. The results indicate that all direct and indirect effects through job satisfaction are significant, with significance values below 0.05. Job satisfaction was found to mediate the effects of leadership, work environment, and well-being on employee performance. These findings underscore the crucial role of job satisfaction in enhancing employee motivation, productivity, and performance. Theoretically, this study reinforces the understanding of the mediating mechanism of job satisfaction between organizational factors and performance. Practically, the findings provide guidance for the management of Company X in designing policies and interventions that enhance employee satisfaction, thereby improving employee performance and supporting sustainable company growth.