INCREASING SIETE CAFÉ EMPLOYEE SATISFACTION THROUGH COMPENSATION SYSTEM

• Main Author: Gwendy Rhyslie, Oswaldo
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72426
• Institution: Institut Teknologi Bandung

Restaurant industry in Indonesia has high potentials since in 2013, it is ranked as the third highest contributor towards Indonesia’s GDP also high growth compared with GDP’s growth. This growth is credited to the change in culture in which society nowadays coming to restaurant not only to eat. Depsite the facts of restaurant industry potential, Siete Café, one of restaurant in Bandung is declining in revenue. Preliminary research done at the restaurant showed that what cause this revenue declining is the lack of innovation and further cause is the unsatisfied employee at Siete Café. The employees are particularly not satisfied with the salary paid by the restaurant for the salary has yet to consider internal alignment in its calculation. Therefore, this research aims to improve the employee satisfaction at Siete Café by incorporating internal alignement in its calculation. This research use the current job description at the restaurant to be made into job analysis which consisted of improved job description and job specification. Job specification was made by listing both competency, education, and experience required to fulfill a job. Required competency of each position is used to calculate the salary. The salary calculation is done with the help of Expert Choice Software to determine each competency importance and Microsoft Excel to find the basic salary for all positions in the restaurant with average salary of restaurant in Bandung as the benchmark. All of this steps are discussed with the restaurant manager to ensure the validity of data processing. The result of proposed salary was compared to the current salary and it turns out there are some positions being overpaid or in needs of higher salary according to the competency. Also there is a position that according to the calculation would is being paid too much and need significant decrease of the salary. However, with the restaurant’s budget capability is still fit the recommendation, researcher recommend for the restaurant not to reduce the salary as much and maximize company’s budget capability to achieve the purpose of increasing employee satisfaction. With the result of this research is specified for Siete Café, the result it may not be able to be used by other similar restaurant, however, the method still could be applied to find suitable salary.