PERANCANGAN SISTEM KOMPENSASI USULAN BERBASIS 3P (PAY FOR PERSON, PAY FOR POSITION, PAY FOR PERFORMANCE) PADA PT X

• Main Author: Eganata, Christabella
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62158
• Institution: Institut Teknologi Bandung

Compensation system is a mechanism that manages the provision of all forms of payment given by employers to employees for the work they do. Compensation systems are designed and implemented by organizations to achieve objectives such as: efficiency, fairness, compliance, and ethics. PT X is a private logistics service company that provides international freight forwarding services. According to the owner of the company, the current overall performance of employees is still not optimal due to low employee work motivation. Based on preliminary studies, it is known that the determination of the current salary of employees tends to be subjective without a clear calculation basis. Therefore, it is needed to redesign a compensation system for PT X to achieve the compensation objectives so as to increase employee motivation and performance. The compensation system is redesigned using the 3P concept (pay for person, pay for position, pay for performance). The pay for person is determined based on the job level, education level, and tenure of the employee. The pay for position is determined based on the job value from the results of job analysis and evaluation as well as the results of the salary survey. The pay for performance is determined based on the results of the employee performance appraisal. In addition to the three components, improvements of other compensation components such as incentives, holiday allowances, and assurance benefits are also carried out. The redesigned compensation system has fulfilled the objectives of efficiency, fairness, compliance, and ethics. However, the calculation result of the compensation budget for 2022 with a redesigned compensation system has increased 9.23% from the 2021 compensation budget with the existing compensation system. This value can be accepted by PT X as long as there is no force majeure that causes the company's financial condition to become unstable. If so, PT X can implement the proposed compensation system in stages or delay the implementation until the company's financial condition is stable enough.