The Effect of Reward System and Job Satisfaction on Employee Performance at MBS Hotel Medan

Abstract

This study aims to analyze the effect of the reward system and job satisfaction on employee performance at MBS Hotel Medan. The reward system, as a form of organizational appreciation—both intrinsic and extrinsic—plays a critical role in motivating employees to achieve optimal performance. Similarly, job satisfaction reflects the extent to which employees feel positive about their work, which directly impacts their productivity and commitment. MBS Hotel Medan, as a competitive hospitality business, faces the challenge of maintaining consistent service quality through high-performing human resources. This research employed a quantitative approach with a descriptive verification method. The population consisted of 87 employees of MBS Hotel Medan, and using saturated sampling, all employees were selected as the sample. Data were collected through a structured questionnaire using a Likert scale (1–5) and analyzed using multiple linear regression with SPSS 26. Results show that: (1) the reward system has a significant positive effect on employee performance (β = 0.412; t = 4.871; p < 0.05); (2) job satisfaction has a significant positive effect on employee performance (β = 0.389; t = 4.203; p < 0.05); (3) the reward system and job satisfaction simultaneously have a significant effect on employee performance (F = 38.547; p < 0.05), with an adjusted R² of 0.623, meaning both variables explain 62.3% of the variance in employee performance. These findings confirm that well-designed reward systems and enhanced job satisfaction are key strategic levers for improving employee performance in the hospitality industry.