COMPETENCE-BASED COMPENSATION SYSTEM IN PT. ABC

• Main Author: Muhammad Hibatullah (NIM 19014051), Fadhil
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22023
• Institution: Institut Teknologi Bandung

The background of this research is from the symptom which happened in PT. ABC. PT. ABC is a <br /> <br /> company which construct and develop one of rail basis transportation in Jakarta. The symptom which <br /> <br /> occurs is several employees are resulting less satisfied performance appraisal within the conducted <br /> <br /> period. This symptom is described through the performance indicator which still not achieve depends <br /> <br /> on the target. Based on the survey results which conducted by the company, the employee felt not <br /> <br /> satisfied and unfair because the higher experiences and competencies that he or she has but the salary <br /> <br /> still the same with employee who has average or even under experiences and competencies in the <br /> <br /> same level of management. Another fact is the Human Resources (HR) department still need to <br /> <br /> estimate or forecast about how much suitable compensation (basic salary) that the employee should <br /> <br /> get depends on the experiences and competencies that the employee has. Estimate here, made the HR <br /> <br /> department should involve subjective point of view in guessing the experience and competence, it is <br /> <br /> made the result of the compensation might be different depends on the decision maker point of view. <br /> <br /> The objectives of this research are to improve compensation system in PT. ABC which can satisfy, <br /> <br /> motivate and fair for the employees and to analyze as well as identify suitable employee's basic salary <br /> <br /> using job evaluation in PT. ABC. <br /> <br /> The methodology used in this research is quantitative and qualitative approach. This research <br /> <br /> collected primary and secondary data as well as processed the data through several steps including <br /> <br /> qualitative approach of interview and observation as well as quantitative approach of point method to <br /> <br /> calculate the basic salary. This research also validated by the head of Human Resources of PT. ABC. <br /> <br /> The result of this research is, competence based compensation system is suitable to be implemented in <br /> <br /> PT. ABC because the purpose of this system is match to solve the company's issues or problem. The <br /> <br /> purpose of the competence based compensation system is to satisfy, motivate and fair the employees <br /> <br /> through a clear indicator or level of measurement of basic salary, especially for experiences and <br /> <br /> competencies indicator. There is also the result of basic salary calculation by the researcher. The <br /> <br /> recommendations for the company are; if this basic salary version will be implemented, the company <br /> <br /> need to make sure if the current basic salary is below the basic salary recommendation because if the <br /> <br /> recommended basic salary is below the current basic salary, it will be unmotivated the employees. If <br /> <br /> this basic salary calculation will be implemented for a whole employees in the company, the company <br /> <br /> need to expand the internal equity because the internal equity for this research only for ten job <br /> <br /> positions. The company also need to catch up about the change of external competitiveness to make <br /> <br /> the company keep up to date with the current business situation. <br /> <br /> Keywords: Competence-Based Compensation System, Job Analysis, Job Evaluation, Jakarta, <br /> <br /> Transportation Modes