EFFECT OF COMPENSATION ON EMPLOYEE SATISFACTION AND EMPLOYEE PERFORMANCE

This study aims to determine the effect of compensation on job satisfaction and the effect of compensation on employee performance in the Mining Company. Data collected by interview, observation and literature study. The study is conducted against 51 employees with analisist the data using methods Partial Least Square (PLS). The results of this study reveal that compensation has a significant effect on job satisfaction, in addition, compensation also has a significant effect on employee performance.

companies who want their employees to feel the satisfaction of work and improve its performance by way of giving compensation that is fair and right on Minning Company. The purpose of the study is that to determine the effect of compensation to the satisfaction of the work as well as to determine the effect of compensation to the performance of the employee.

Literature Review Job Satisfaction
Satisfaction work is a picture of the attitude of an employee either happy or not happy about rewards that come by, the work that is associated with his own, with his superiors, fellow employees, as well as environmental work. According to Robbins and Judge (2015: 46) explains that the satisfaction of work is as feeling positive about the job as a result of evaluation of its characteristics. Compensation is a reward that is given by the company to the employees on the work that it generates. According to Rivai and Sagala (2011: 741). According to Handoko (2014: 193) satisfaction of the work is a state of emotional which is fun or not fun where employees see work them. yatakan satisfaction of work (job satisfaction) is a response to effective or emotionally to various terms of job a person. According Wibowo (2014: 132) indicators of satisfaction of work, namely: Satisfaction on the job it 's own, the satisfaction on salary, satisfaction over the co-work, satisfaction on sale, satisfaction on conditions of employment. Rivai and Sagala (2011: 548) define employee performance is a real behavior that is displayed by each person as an achievement of his work in accordance with their respective roles in the company. According to Mathis and Jackson (2011: 378) performance (perfomance), at basically is is what that is done or not done by employees. According Mangkunagara (2013: 67) performance is "the result of work by the quality and quantity of that achieved by an employee in carrying out their duties in accordance with sole responsibility that was given to him". According Torang (2013: 74) defines the performance is the quantity and quality of the results of the work of individuals or a group in the company in carrying out the task of principal and procedures , criteria and size that have been set or which apply within the company.

Performance
According to Anwar Prabu Mangkunagara (2009: 75) suggests that indicators of performance, namely: quality of work, quantity of work, the implementation of the duties, responsibilities responsibility. Factors that influence the achievement of performance, according to Mangkunegara (2000: 67) "is the ability factor (ability) and motivation factor (motivation)". Can be drawn the conclusion that the performance of the form of the quality and quantity of a result of work (outputs) of individual or group in an activity particular that caused by the ability of a natural or ability that is obtained from the process of learning and desire to excel . In addition, a person's motivation in carrying out work is a measure or benchmark for the maximum whether he works. Figure 1

Research Method
The research is a kind of research explanations (explanatory research) with approach quantitative. In research it used the method of determining the sample by using the method of census of the whole employees of the Company mines amounted to 51 respondents. Because the number of research subjects numbered 51 people or in other words the population of 51 was less than 100 so this study used a census method where all the population was sampled. The population in the study have included a population limited that an employee. Analysis of the data in the study is using a model equation structural -based variance or component-based structural equation model, which is known by the Partial Least Square (PLS). According to Wold (Ghozali 2008: 4), PLS is a method of analysis that is powerful by because not based a lot of assumptions. Data does not have to be multivariate normally distributed, the sample does not have to be large. PLS is also a solution the best that can be done within the limited data that exist. Stages of analysis by using Partial Least Square (PLS) by (Lathan and Ghozali 2012: 47) is: conceptualization of a model, specify the model analysis algorithm, determines the methods of resampling, draw a diagram of the path, the evaluation models. Based on the table it, then it can be known influence between variable compensation to the satisfaction of the work which is indicated by the value of t-statistic 7.469> 1, 96. It is significant that the compensation effect exhibited significantly to the satisfaction of work . H1 received.

Results and Discussion
In addition, it can also be seen the effect of the compensation variable on employee performance as indicated by the value 14,321> 1.96. It is significant that the compensation effect significantly to the performance of employees. H2 received.

Conclusion and Suggestion Conclusion
Based on the results and discussion, it can be drawn conclusions as follows: Compensation has the effect that a positive and significant to the satisfaction of the work of employees. It's means that p Increased compensation can improve the satisfaction of work of employees in the Company's mines. Compensation has the effect that positively and significantly to the performance of the employee. It is demonstrated that p Increased compensation can improve the performance of employees at the Company's mines.

Suggestion
To improve the performance of employees and address the decline in the performance of employees of the Company mines is recommended for more attention to the satisfaction of the work of employees , mainly provide compensation that is aligned with the factors of satisfaction and expectations of employees.