Year: 2025 | Month: December | Volume: 12 | Issue: 12 | Pages: 70-79
DOI: https://doi.org/10.52403/ijrr.20251209
The Influence of Skills-Based Hiring and Income Levels on Employee Performance: The Mediating Role of Job Satisfaction
Emi Safrina1, Haryani2, Sulaiman3
1,3Faculty of Social and Political Sciences, Almuslim University, Aceh, Indonesia
2Faculty of Economics, Almuslim University, Aceh, Indonesia
Corresponding Author: Emi Safrina
ABSTRACT
Tax administration organizations play a key role in promoting economic development and fiscal sustainability by generating essential revenues for the state. This study analyzes the effect of skill-based recruitment and income level on employee performance, mediated by job satisfaction, among employees at the Banda Aceh Tax Office. Using a quantitative methodology, data were collected from 108 employees using a five-point Likert scale questionnaire distributed to employees. Relationship analysis was conducted using Structural Equation Modeling (SEM) with AMOS 24 software. The results show that skill-based recruitment positively and significantly impacts job satisfaction and performance. Income level also has a positive and significant impact on job satisfaction and JP. Job satisfaction positively affects performance. Notably, job satisfaction fully mediated the relationship between skill-based recruitment and performance, and partially mediated the relationship between income level and performance. These results reinforce the theory of talent management and economic incentives, highlighting how increased job satisfaction improves employee performance. Tax offices should prioritize skill-based recruitment and competitive remuneration to optimize employee performance.
Keywords: Skills-based Hiring, Income Levels, Job Satisfaction, Employee Performance.
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