THE INFLUENCE OF MANAGERIAL COMPETENCY ON EMPLOYEE SATISFACTION THROUGH COMPENSATION AS A MODERATING VARIABLE

Managerial competency on employee satisfaction through compensation as a moderatingvariable is the first research in the field of human resource management. This study will analyze the direct influence of managerial competencies on employee satisfaction through compensation as a moderating variable at Sharia Financial Service Cooperatives in Pekanbaru. This study employed a descriptive method with a quantitative approach as its framework. 79 employees at Sharia Cooperatives in Pekanbaru participated in this study. Moreover, the data of this research is multiple regression analysis which is used for data analysis. The result of the study revealed that managerial competencies have a positive and significant influence on job satisfaction. Furthermore, Managerial competency on employee satisfaction through compensation as a moderating variable shows that the compensation variable has a positive effect, but the Managerial competency variable has no effect. The results of this study indicate that employee satisfaction is more influenced by the compensation variable than the managerial competency variable even though this variable is a moderator. This shows that managerial competency cannot increase employee satisfaction because sharia financial service cooperatives already have a standard of work that must be done by every employee so that to get satisfaction there is no need for managerial competency, but they really need a higher amount of compensation