Transformational Leadership, Job Satisfaction, and Employee Performance: The Moderating Role of Financial Rewards

Abstrak

This study aims to analyze the effect of transformational leadership on job satisfaction and employee performance, as well as the influence of job satisfaction on performance. Additionally, this study examines the moderating role of financial rewards in the relationship between job satisfaction and performance. The research was conducted using a quantitative approach with 160 respondents from a telecommunications company in Kendari City. Data analysis was carried out using Structural Equation Modeling with the Partial Least Squares (SEM-PLS) method. The results reveal that transformational leadership has a significant positive effect on both job satisfaction and employee performance. Job satisfaction also significantly influences performance. Moreover, financial rewards significantly moderate the relationship between job satisfaction and performance, strengthening the effect. These findings emphasize the importance of transformational leadership and adequate financial incentives in improving employee satisfaction and optimizing performance