The Role of Job Satisfaction and Employee Motivation serves as a Mediating potency within the Remuneration System, Contributing to the Employee Loyalty. A Case Study in Hospitality Industry in Dili
Abstract
The objective of this research is to test and analyze the roles of job satisfaction and employee motivation in the remuneration system and employee loyalty. This study highlights the significance of recognizing and dealing with both internal and external motivations to boost employee performance and loyalty. Additionally, it stresses the importance of matching salary structures with educational backgrounds to enhance loyalty and dedication among employees, especially within the hotel sector in Dili. The research centers on employees in the hospitality sector, specifically hotels, in Dili. The study focuses on the population of the hospitality industry or hotels in the capital, Dili. A census or saturation sampling approach was employed, with a total sample of 205 employees from various hotels, and the data were analyzed using Smart PLS. The results indicate that the remuneration system influences employee loyalty through the mediation of job satisfaction and employee motivation. However, the remuneration system itself does not have a direct impact on employee loyalty within the hotel industry in Dili. Hospitality businesses in Dili should implement an effective remuneration system to enhance job satisfaction and employee motivation, ultimately increasing employee loyalty. This can be achieved by offering competitive salaries and incentives based on employee performance
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