The Effect of Rewards, Work Environment, and Work Motivation on Employee Engagement Through Job Satisfaction at PT Garuda Utama Persada

Abstract

Employee engagement has become an important factor in achieving organizational effectiveness because highly engaged employees tend to demonstrate greater commitment, dedication, and contributions toward organizational goals. However, employee engagement can be influenced by various factors, including reward systems, work environments, work motivation, and job satisfaction. This study aims to examine the effect of rewards, work environment, and work motivation on employee engagement through job satisfaction as an intervening variable at PT Garuda Utama Persada. This study employed a quantitative approach with an explanatory research design. The population consisted of 250 permanent employees, with a sample of 154 respondents selected using the Taro Yamane formula. Data were collected through questionnaires using a five-point Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM–PLS) with SmartPLS software. The results indicate that rewards do not have a significant direct effect on employee engagement, while work environment and work motivation have positive and significant effects on employee engagement. Furthermore, rewards, work environment, and work motivation significantly influence job satisfaction, and job satisfaction positively affects employee engagement. The mediation analysis reveals that job satisfaction significantly mediates the relationship between rewards and employee engagement, as well as between work environment and employee engagement. However, job satisfaction does not significantly mediate the relationship between work motivation and employee engagement. These findings highlight the importance of developing a supportive work environment, strengthening employee motivation, and implementing effective reward systems to enhance job satisfaction and sustain employee engagement.