The Effect of Situational Leadership and Compensation on Employee Loyalty with Job Satisfaction as a Intervening Variable(A Study at the Deputy for Emergency Management, National Disaster Management Agency)

Abstract

The aim of this study was to analyze the effect of situational leadership and compensation on employee loyalty at the Deputy of Emergency Management BNPB (National Disaster Management Agency), with job satisfaction as an intervening variable. The approach of this study was quantitative, using a causality analysis method. The instrument for data collection used a five-point Likert scale questionnaire. The respondents of this study were 40 employees of the Deputy of Emergency Management BNPB. The data was analyzed using Structural Equation Modeling-Partial Least Square (SEM-PLS). Results showed that situational leadership had a positive effect on job satisfaction. The effect of situational leadership on employee loyalty was not direct, but through job satisfaction. Compensation had a positive and significant effect on job satisfaction, but it did not have a significant direct effect on employee loyalty. Job satisfaction had a positive and significant effect on employee loyalty. Thus, job satisfaction had a crucial role as an intervening variable.