THE DECISION MAKING PROCESS OF TOTAL REWARDS ARRANGEMENT IN INDONESIA-BASED DIGITAL AND TECHNOLOGY COMPANY: EMPLOYERS AND EMPLOYEES PERSPECTIVE

• Main Author: Salsabila, Aliya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79861
• Institution: Institut Teknologi Bandung

The global workforce faces impactful challenges due to the COVID-19 pandemic, resulting in disruptions across various industries. Beyond the obvious repercussions of downsizing and layoffs, employee retention became a challenge for organizations, especially on intangible the incentives such as flexibility and job fulfilment. The importance of total rewards endured as a critical factor in retaining talent within organizations. Consequently, understanding the strategic creation of these packages and discerning the factors that attract talent to either remain with or join a company became imperative. To unravel the intricacies of criteria in this context, the study employed the Analytic Hierarchy Process (AHP) to facilitate the analysis and prioritization of factors from both the employers' and employees' perspectives. The study undertook structured interviews with a group of 3 (three) decision-makers responsible for total rewards in their respective companies. The aim was to gather data and understand the relevant criteria, which are Short-Term Financial, Long-Term Financial, Flexibility, and Future Development. Testing the AHP model involved 3 (three) participants from top-level management and 10 (ten) participants from the employee tier, providing perspective from both employers and employees side. The research findings highlighted the certain agreement on the importance of competitive salaries in the Short-Term Financial aspect, resonating across both employer and employee viewpoints. However, employers perceived Long-Term Financial considerations as an integral component of a holistic total rewards package essential for sustaining the business. In contrast, employees emphasized the significance of Flexibility, viewing it as an important element of work-life balance. The study also uncovered a shared acknowledgment of the importance of Future Development, with employees emphasizing career mobility within the company over the budgets for informal education. As a pioneering effort, this research point out concerns about achieving this balance between strategy and policy in the ever-evolving digital & technology business.