ANALYSIS OF SIGNIFICANT TYPE OF COMPENSATION TOWARDS EMPLOYEE PREFERENCE IN STARTUP COMPANIES WITHIN BANDUNG

• Main Author: Hanggara P. H., Rafly
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49028
• Institution: Institut Teknologi Bandung

Startup companies are newly born businesses that compete for life. Most of these institutions are formed based on brilliant ideas, and evolve to succeed. (Salamzadeh 2015). The essential thing in here is growth, which therefore everything else we associate to startup is correlate to growth. Complimenting to the statement, Steve Blank (2010, p. xvii) also mentioned that, “A startup is a temporary organization in search of a scalable, repeatable, profitable business model”. Compensation is arguably one of the most (if not the most critical) influencing factors on the efficiency and productivity of human capital. Compensation affects the quality of the applicants, the quality of those recruited, the probability of workplace recognition, the workforce's morale and level of performance and the quality of who remains with the company (Gupta 2013). Much like as in established company, compensation procedure also applies in start-up companies to deals with every reward that each employee receive. These Compensation procedure that mostly used comprise base pay, merit pay, profit sharing, stock option until employee benefit. But the reality in a startup company is also facing a difficulty Startups are left accountable for newness. One explanation for this challenge is the minimal resources available to new companies (Bruton & Rubanik, 2002). Consequently, on account of the importance of compensation and deficient situations of a startup, a startup needs to find an efficient way to allocate its limited budget to gain maximum level of employee satisfaction. The researcher thus intended to determine the significant types of compensation suited to employee preference. The purpose of this study therefore based on two foundations; the difference of employee compensation preference and the significancy of each compensations means between each employee level. The researcher conducts quantitative approach by using questionnaire methods. The data gathered then analyzed using One-Way ANOVA. Eventually, This study could lay the foundations of the understanding Bandung startup's employee preference towards types of compensation which could help new startups to better suited their compensation policy.