|
|
INTERNATIONAL
JOURNAL OF SOCIAL SERVICE AND RESEARCH
|
Adinda Yom, Rindi Anti
Nur Fadilah, Shafira Putri, Sitria Maulida
Departemen Management,
Fakultas Ekonomic and Managemen, Institut Pertanian Bogor, Indonesia
Email: [email protected],
[email protected], [email protected], [email protected]
Abstract
Compensation is one of
the crucial things in a company that needs to be designed accordance with the
3Ps (Pay for person, pay for performance, and pay for position) so that
employees can give their best contribution to the company. In this case, it is
necessary to determine the grading between positions that reflects the
knowledge, skills, and responsibilities of employees at each level. One of the
weighting criteria can used are based on the Hay System, which is classified
based on know- how, problem solving, and accountability. Budi Poultry Shop is one
of the SMEs in Magelang which is engaged in chicken farming in partnership with
PT Malindo Feedmill Tbk. The purpose of this study is to evaluate the payroll
system in the Budi Poultry Shop compensation to be more fair and effective for
each employee based on Job Value & Job Grading using hay job evaluation
methods and a salary mapping system with the Adhered method and the Overlapping
method. The data used in this study are primary data and secondary data
obtained through the distribution of questionnaires, interviews, and literature
studies to various sources relevant to the research. Based on the results of
data processing, it is found that the compensation system for the SME Budi
Poultry Shop is less than ideal. The ideal compensation system is to use an
analysis of the salary mapping compensation system with the overlapping method
to implement the efficiency of funds issued by SMEs.
Keywords: hay system;
job grading; salary mapping
Received 20
November 2021, Revised 30 November 2021, Accepted 10 December 2021
Introduction
Basically, companies need employees to be able to achieve
company goals, while employees need
companies to be able to meet their needs. So it is only
natural that companies provide compensation in the form of compensation to their
employees and employees should also give their best performance to the
�� company where they work. The compensation given by the
company must also be comparable to what has been done by employees in the
company, so that the best performance can be provided by employees.
Compensation has an important role in improving the
performance of human resources in a company. Compensation according to Mondy
(2008), compensation is the total of all rewards received by employees as a
substitute for the services they have provided. Inappropriate compensation will
have an impact on employee performance. According to Hasibuan (2000), if the
compensation given is appropriate, the employee's performance will be better,
on the contrary if the compensation given is not appropriate, the employee's
performance will be worse. Thus, we need an appropriate payroll system design
based onjob value. There is also a need for a payroll system that is in
accordance with the work, position, and individual values of the
workers or based on the 3Ps (Pay for person, pay for performance, pay for
position), so that employees can give their best contribution and the company
can continue to compete with similar competitors.
This research takes a case study on the SME Budi Poultry
Shop which is one of the SMEs in Magelang Regency which is engaged in chicken
farming. Budi Poultry Shop has been established since 1977 and currently has 21
employees. Each employee has several tasks that are carried out according to
the position he holds.
This SME implements a compensation policy using an
employee level system. However, as an SME that has been around for a long time,
which is more than 40 years, in fact the compensation received by its employees
is still not distributed according to each level of employees. Based on this,
we are interested in conducting a study to evaluate the compensation system at
the SME Budi Poultry Shop using Hay Job Evaluation Methods based on job value.
After the amendment to the
1945 Constitution, the right to privacy which also includes the right to
personal protection is one of the human rights and constitutional rights of
citizens. (Wahyudi
Djafar, 2019). This constitutional right is contained in
Article 28G paragraph (1) of the 1945 Constitution of the Republic of Indonesia
which reads "Everyone has the right to protect himself, his family, honor,
dignity and property under his control, and has the right to a sense of
security and protection from threats of fear." to do or not to do
something which is a human right.�. In addition, referring to the
Constitutional Court Decision No. 5/PUU-VIII/2011, it is written that the right
to privacy is also a part of human rights, and its scope includes information
(right to information privacy) or also known as data privacy (Niffari,
2020). Therefore, providing protection of citizens'
personal data is a government obligation that must be fulfilled.
Indeed, the Indonesian
government has begun to care about the protection of citizens' personal data.
This can be seen from the Personal Data Protection Bill which has been included
in the 2021 Priority National Legislation Program (Prolegnas). In addition, the
Ministry of Communication and Information has also planned to establish an
independent commission for personal data protection. With the existence of an
independent commission for the protection of personal data, this can be the
spearhead to ensure that efforts to protect personal data are carried out and
the compliance of controllers and processors of personal data, both
individuals, private legal entities, and public institutions in protecting the
data. In addition, with the establishment of an independent commission for
personal data protection, later this independent commission will have limited
authority which will only handle cases related to data privacy through the
courts.
Apart from being one of the
next steps by Kominfo to realize the constitutional rights of citizens, the
mandate to establish an independent commission for the protection of personal
data is also contained in various laws and international agreements. Therefore,
in this paper, the author will comprehensively discuss how the mandate of the
procurement of an independent commission for personal data protection is
reviewed from international legal instruments. In this paper, the authors focus
on the United Nations Guidelines for the Regulations of Computerized Personal
Data Files 1990 and the APEC Privacy Framework
(2015). In addition, this paper will also present about 2 (two)
neighboring countries that already have independent commissions specifically
for the protection of personal data so that it is hoped that Indonesia can
follow the example of these 2 (two) countries.
Method
1.
Time and Location of
Research This research was carried out by
taking a case study on the SME Budi Poultry Shop located at Jalan Sukarman No.
214 Secang, Magelang Regency, Central Java. The research was conducted for
approximately 6 weeks starting in mid-August to the end of September 2021.
2.
Types and Sources of Data The
data used in this study are primary data
and secondary data. Primary data was obtained through distributing
questionnaires and interviews to Budi Poultry Shop workers. To find out the
compensation data for all employees in UKM, a questionnaire was distributed
through Google Form. Meanwhile, interviews were conducted with SME employees to
find out the work factors applied at the Budi Poultry Shop. The secondary data
used comes from various literatures such as theses, theses, articles, books and
trusted national journals.
3.
Data Collection
Method The sampling method in this study
was saturation sampling with the census technique used to determine the salary
data of all 21 employees of the Budi Poultry Shop. Saturation samplingsampling
is atechnique when all members of the population are used as samples, provided
that the population is not large and the researcher wants to make
generalizations with very small errors (Binus, 2017). Then to find out the
factors that form the basis for determining the salary applied by the Budi
Poultry Shop, atechnique is used purposive sampling. The respondents in this
study that we used as samples were the Manager of the Budi Poultry Shop. The
selection of respondents was done because the respondents were considered to
understand the duties and responsibilities of the SMEs.
4.
Data Analysis Methods
In preparing the payroll system of
value-based positions on Budi Poultry Shop, performed data processing and
multiple methods of analysis, including descriptive statistical analysis,method
pointsystem and analysismapping salary(salarymapping).The author uses the help
ofsoftware Microsoft Excel 2010for data processing where the data is converted
into tables and graphs to make it easier for readers to understand.
Furthermore, to draw conclusions from the processed data, descriptive analysis can
be carried out.
Analysis with salary mapping is carried
out to determine the percentage of the range spread and mid to mid salary from
one position to another. After that, a comparison of the percentage between
thewas carried out mid to mid and the range spread with thesalary structure
conditions
ideal, namely the mid to mid value is
smaller than the range spread (Payscale Compensation Consultant 2013).
Meanwhile, according to Mondy (2008)
themethod is point system used to provide a quantitative assessment of the
relative value of work by allocating numerical values tojob
factors certainsuch������ ����� as the knowledge required and the sum of these
values. The stages of the point system method based on Mondy (2008) include
determining groups jobs, identify���� compensable factors, determine factor
weights, set prices for each job to get a midpoint salary, calculate pay
ranges, pay levels, and make adjustments to salaries. Based on (Kartika L. et
all, 2016) after we get the results of the mid point salary, then after that
determine the basic salary and top salary which will produce 3 actual salary
conditions, namely under paid, in paid, and over paid. Under paid occurs when
the actual salary received is lower than the basic salary, in paid occurs when
the actual salary is between the base salary and the peak salary, and over paid
occurs when the actual salary received is above the peak salary. From these
results can then be created ideal payroll system by doing a freeze on the
conditions paid over and raise the salariesinto the basic salary of the
calculation point system for the conditions under paid.
5.
Research Thinking Framework
Results
And Discussion
1. Overview of
UKM Budi Poultry Shop
Budi Poultry Shop is an SME engaged in
chicken farming, especially broilers with a partnership system with PT Malindo
Feedmill Tbk. This UKM is a family business that was founded in 1977 and is
located at Jalan Sukarman No. 214 Secang, Magelang Regency, Central Java. Until
2021, permanent employees at this UKM have reached 21 employees with an average
production of 2-3 tons of live broilers every day, both from private cages and
other breeder partners. With the number of private cages reaching 3 pieces
spread throughout the Magelang Regency, this UKM is constantly expanding itsnetwork.
Tradingso that it continues to grow. Based
on the MSME Law of 2008, Budi Poultry Shop is a medium-sized business because
it has a turnover of 550 million per month and according to the Central
Statistics Agency, it is a medium-sized business because it has a workforce of
21 people.
The vision of UKM Budi Poultry Shop is
"Growing towards shared prosperity". The missions of this UKM are:
1.
Provide feed and drugs of choice according to
SOP
2.
Maintain the quality and health of chickens
with regular checks
3.
Provide���������� � a convenient and safe
delivery service
4.
Creating�������� �� jobs
5.
Creating a professional and family work
environment
The organizational structure of the Budi
Poultry Shop UKM is as follows
Figure 2.
Organizational structure of Budi Poultry Shop
2.
SME Compensation System Overview
Based on financial data obtained from the
SME Budi Poultry Shop, the monthly turnover of this SME is 550 million rupiah.
Meanwhile, the monthly basic salary operating expenses is Rp. 30,625,000. In
practice, Budi Poultry Shop provides several types of additional compensation
outside the basic salary such as mid-month salary, house allowance, employment
insurance, health insurance, THR, achievement index as a bonus, overtime pay,
and meal allowance. The amount received by each employee is different depending
on the length of work and the type of work they do.
The compensation system implemented by
the SME Budi Poultry Shop can be analyzed usingsalary mappingbased on position
level. However, the Budi Poultry Shop UKM does not yet have a clear
organizational structure so that the compensation applied by Budi Poultry Shop
is currently not in accordance with the level of position it occupies.
Therefore, it is necessary to improve the organizational structure which is
then calculated, analyzed, and evaluated to design an ideal compensation system
for Budi Poultry Shop SMEs.
3.
Characteristics of Respondents
Respondents in this study came from
permanent employees of UKM Budi Poultry Shop as many as 21 respondents.
Analysis of respondent characteristics is used to categorize and determine the
type of respondent who is the sample in the study.
Table 1
Characteristics of
Respondents
|
JABATAN
|
Jenis Kelamin
|
Usia (Tahun)
|
Lama Bekerja
(tahun)
|
|
Pria
|
Wanita
|
<25
|
26-35
|
>35
|
<5
|
6-10
|
>10
|
|
Manager
|
0
|
1
|
0
|
0
|
1
|
0
|
0
|
1
|
|
Agen Marketing
|
1
|
0
|
0
|
0
|
1
|
0
|
0
|
1
|
|
Supervisor
|
2
|
0
|
0
|
1
|
1
|
0
|
2
|
0
|
|
Driver
|
3
|
0
|
0
|
1
|
2
|
0
|
1
|
2
|
|
Staff Kandang
|
8
|
0
|
1
|
4
|
3
|
1
|
3
|
4
|
|
Staff Ayam
|
5
|
0
|
2
|
2
|
1
|
1
|
1
|
3
|
|
Staff Dapur
|
0
|
1
|
0
|
0
|
1
|
1
|
0
|
0
|
|
Jumlah
|
19
|
2
|
3
|
8
|
10
|
3
|
7
|
11
|
|
Total
|
21
|
21
|
21
|
Source: Data processed, 2021
Based on table 1, the results
show that the number of male employees is more than female employees with a
dominance of more than 90%. This is especially true for positions that use more
physical energy, such as drivers, coop staff, and chicken staff. Most of the
employees are more than 35 years old with more than 10 years of service. This
indicates that most of the employees are employees who have worked for these
SMEs for a long time, which indirectly also reflects the lowrate of turnover
SMEs.
4.
Analysis of Employee Basic Salary on UMP and
UMK
UKM Budi Poultry Shop is
located in Magelang Regency, Central Java Province. For this reason, the
Central Java UMP as comparison is Rp.1,798,979 and the Magelang Regency UMK is
Rp. 2,075,000. The basic salary data uses the assumption that salaries are not
deducted by any costs and employees work full time for one month.
Figure 2
Comparison of the basic
salary of employees with the UMP and UMK
Based on Figure 2, it can be
seen that there are only 2 employees who get salaries above the UMP and UMK.
One other position has been above the UMP but not yet above the UMK. While
others are still less than the UMP and UMK. The high number of employees who
earn a basic salary below the UMP and UMK is due to the many other benefits
provided by the owner to employees such as monthly rice, work health and safety
benefits, housing allowances, daily meal allowances, etc. For this reason, the
owner feels that the basic salary which is still below the UMP and UMK is
reasonable.
5.
Determining the Ideal Compensation System for
SMEs
In the compensation system as
much as possible balance the ability to pay compensation with the performance
and needs of employees so as to create a compensation system that can be accepted
fairly by both parties. Toto be abledesign a compensation system that is ideal
there are several things you should do is to set the factors compensation (compensable
factors), calculates the positions (jobvalue) and job grading methods Given Grade,
analyzing salary mapping, making improvement of salaries by methods adhered to
and themethod overlapping, finally concluding the ideal compensation system for
the SME Budi Poultry Shop.
6.
Establish���������� compensation factors (compensable
factors)
This stage was conducted by
interviewing internal experts SMEs ie in this case managers who can formulate
compensation factors are used. The interview resulted in 10 compensation
factors from the manager, namely:
a.
experience ������ Work��� from the����������� book
Human Resources Management.
b.
Education level from the book Human Resources
Management.
c.
conditions��������� Working����������� from
the����������� NHS Job evaluation handbook.
d.
The work complexity of the Government of Newfoundland
and Labrador Job Evaluation System (JES).
e.
Decision making from the Government of
Newfoundland and Labrador Job Evaluation System (JES).
f.
Work relations skills (guiding/advising
others) from the CAAT Job Evaluation Manual.
g.
Responsibility for tools and equipment from
the NHS Job evaluation handbook.
h.
Communication skills from the University of
London Job Evaluation Manual.
i.
Physical effort from the NHS Job Evaluation
Handbook.
j.
Responsibilities for information resourcesfrom
the NHS Job Evaluation Handbook.
7.
The calculation of the value of
positions(jobvalue)
Weighting is done so that
each office can be grouped into a certain level so that the employee will be
compensated for the degree of its competence in a company.
Table 2. Weighting of compensation factors
Although the contents of the
United Nations Guidelines for the Regulations of Computerized Personal Data
Files 1990 in general are also about Source: Data processed, 2021
�The weighting�������� of
these factors shows the level of importance between factors, with a value of 1
meaning that both factors are equally important, a value of 3 meaning that
factor one is slightly more important than other factors, a value of 5 means
that factor one is more important than other factors, a value of 7 means that
factor one is very more important than other factors, the value of 9 which
means that one factor is absolutely more important than the other factors and
the value of 2,4,6,8 is the middle value. From the results of the calculation
of the weight of the compensation factor above, the calculation of the value of
the compensation factor for each position will be calculated.
Table 3
Calculation of compensation
factor value for each position
Source:
Data processed, 2021
Based on table 3 the values
listed indicate the importance of a compensation factor in a
position. The higher the value indicates that the factor is more important in
the related position. From the results of the calculation of the value of the
compensation factor for each position above, thewill be calculatedjob valueof
each positionby multiplying the weight of the compensation factor with the
value of the compensation factor for each position listed in table 2 and table 3
Table 4
Calculation of value positions(jobvalue)
Source: Data processed, 2021
Tabel 6
Salary mapping UKM
Source: Data processed, 2021
Based on table 6, the results
of the salary mapping show that there are still non-ideal salary conditions.
Where thevalue spread has not increased along with the increase in grade from
low to high level and there is still a mid to mid value which is still larger
than the spread. The ideal condition is only seen in the manager, supervisor,
marketing agent, and cage staff positions where the value is mid to mid is
smaller than the range spread value. While the rest are in less than ideal
conditions. It is said that it is not appropriate because the distance from one
position level to another is too far and not too close together so that there
will be a salary increase that is too extreme. This shows that internal justice
has not been created in the company.
8.
Salary improvement using themethod The adhered
following are the results of
salary improvement using the adhered method
Table 7
Salary improvement using
themethod adhered
Source: Data processed, 2021
In the table above, it can be
seen that the spread has been fixed with the spread value for the driver at
32.83% and the spread rate has increased for each position and the mid to mid
value has been
smaller than the spread value. Next is to
determine the initial minimum salary that the business owner isof, which is IDR
capable1.00.00������� with a
spread
Figure
3
Illustration
of overlapping compensation (adhered)
�In the picture above, it can
be seen that the maximum value for grade 1 will be the minimum value for grade
2, as well as for subsequent grades. In this compensation system, a person with
a salary at grade 1, cannot have a salary at alevel gradeabove it. Likewise, a
person with a salary of grade 2 cannot have a salary at a grade level below or
above. Likewise with the other grades.
9.
Salary improvement using themethod overlapping
Table
8
Salary
Mapping with the overlapping method
Source:
Data processed, 2021
The table shows
theimprovement salary� using the overlapping method. The most visible
difference from the overlapping method is that only the maximum grade 2 grade
is lower than before, this means that senior workers in grade 2 are overpaid.
In addition, the minimum grades for grades 2 and 3 also appear to be lower than
before , which also indicates thatworkers entry - level at this grade are also
overpaid. However, the salaries of entry-level workers at grade 1 increased
significantly based on the ability of SME owners to increase their basic salary
to be close to the UMP and UMK even though it has not been exceeded.
Figure
4
Illustration
of a compensation system using the overlapping method
�In the picture above, it can
be seen that in this compensation system, there can be a possibility if an
employee at grade 1 gets a salary that is in grade 2. And similarly applies to
an employee at grade 2 can also get a salary that is in grade 1.
10.
The Ideal Compensation System at Budi Poultry
Shop
Table 9
Comparison of basic salary
with the results of salary improvement usingmethods adhered and overlapping
Source:
Data processed, 2021
Based on the discussion, Budi Poultry
Shop UKM can increase salaries which are below the UMR and UMP. If the owner
feels unable, then at least the salary is close to one of the UMP or UMK and
limits the salaries of employees who are in an overpaid condition. This is done
so that the amount of salary issued with the value of the job or position is in
accordance with the principles of internal justice in the company. Comparison
of actual salary calculations withmethods adhered and overlapping can be seen
in table 9. The ideal compensation system for Budi Poultry based on this
comparison is using the overlapping method because the difference with the
actual salary is the least and most likely to be realized at this time. It is
hoped that the compensation system used can be accepted by all parties.
Conclusion
Based on the results of research and analysis that has
been done, the following conclusions can be drawn:
1.
Based on the results of theformulation
compensable factor, the determining factors in determining wages at the Budi
Poultry Shop are work experience, education level, working conditions, complexity
work, decision making, work relations skills, responsibility for tools and equipment,
communication skills, effort physical, as well as responsibility for records
and reports.
2.
The calculation of the initial salary mapping
of SMEs is not ideal and only 2 out of 21 employees receive a basic salary
above the UMP and UMK, so it is necessary to improve the compensation system
for SMEs.
3.
Based on the comparative analysis using the
adhered method and the overlapping method, it can be determined
that�������������� the salary improvement method that is suitable for the Budi
Poultry Shop UKM is overlapping because the difference with the budget set is
not too high and the UKM accepts it.
References
Hasibuan, MS (2000). Human Resource Management.
Yogyakarta: STIE YKPN.
Mondy RW. 2008. Human Resource Management, Volume 2 Edition
10 (Translation). Jakarta (ID): Erlangga Publisher.
Binus. 2017.Systems Student
Association�������������������������������������� ������ Information. https://student-
activity.binus.ac.id/himsisfo/201 7/03/probability-sampling-vs-
non-probability-sampling/��� ������������ . Accessed������������ ��� on�������� 28�������� September
2021.
PayScale. 2003. How To Build Pay Grades And������������ � Salary
Ranges. [Internet].�� ������ [Downloaded �������������� �������������� 2015
December 12]. Available On
http://resources.payscale.com/rs/payscale/images/2013-How-to-Build-Pay-Grades-and-Salary-Ranges.pdf
.
Regina Yuanita, Lindawati Kartika. 2016.�� �������� DESIGN
OFSYSTEM���������� ������� JOB VALUE-BASED COMPENSATIONAT MOMO MILK BARN BOGOR [internet].[Downloaded
2021 Sep 25];
4(2):
46.
