IMPROVING COMPENSATION SYSTEM TO INCREASE EMPLOYEE SATISFACTION TOWARD SALARY IN THE STONE CAFÉ

• Main Author: Asiyah Hanun, Masayu
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22995
• Institution: Institut Teknologi Bandung

As a restaurant playing in a high competition area, The Stone Cafe needs to have employees with good performance so that they can compete with other restaurants nearby. Employee satisfaction in working at a company becomes important to ensure the employees perform well. In order to find out about employee satisfaction in The Stone Cafe, the researcher conducted a questionnaire regarding its compensation, performance appraisal, and training to the employees. Compensation, performance appraisal, and training are part of human resource management activities within a company for improving the performance. The result of this survey shows that many of the employees are already satisfied with the performance appraisal and training but 54% are not satisfied with their basic salary because the salary that they received is not compatible with the work demand and the job responsibility. Basic salary is part of compensation system and in The Stone Café itself it is the biggest component of their compensation system. The researcher then carried out an interview with the restaurant’s Assistant Manager in which he stated that there are employees who are constantly being absent from work. The objective of this research is to improve the compensation system in The Stone Cafe and recommend a set of basic salary options for The Stone Cafe to choose from as a way to make the employees more satisfied with the compensation system which can help reduce employee absenteeism. The research methodology used in this paper is job based structure to determine the pay structure for each positions in The Stone Cafe. In evaluating the job, the researcher will be using point method and competency based as the compensable factors where the competencies will be taken from Spencer and Spencer competency dictionary. The finding of this research is a set amount of basic salary for each positions in Stone Cafe that are more suitable for their job responsibility. Internal and external alignments are also considered in the calculation of the new salary which mean internal fairness is taken into account where employee’s pay is equitable in relative to what their colleagues in the company are earning and external alignment refers to the pay of what other employees get, those with the same job but work at different companies. Most of the recommended salaries generated are higher than the current salaries which can increase employee satisfaction toward compensation and as for recommended salaries that are lower, it is recommended to keep using their current salaries for that positions so that it will not contradict the aim of this study which is to increase employee satisfaction toward compensation. Though some recommended salaries are slightly lower than the average salary for restaurant in Bandung, most of them are higher and they are also generally higher than the current salaries. As many of them are generally higher than the average salary for restaurant in Bandung, it can increase their competitiveness in attracting workers. To apply the new salaries, it is suggested for The Stone Café to socialize and communicate it first before implementing it so that they employees are aware of it and prevent conflict that could arise. For further research, it is recommended to analyze other factors that can cause employee absenteeism other than employee satisfaction toward compensation.