INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH

COMPARISONAL ANALYSIS OF COMPENSATION USING ADHERED METHOD AND OVERLAPPING METHOD

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Adela Fortunada, Salsabila Putri R, Muhammad Akbar Ajiatmojo, Mohamad Rifki Aufan, Moh. Naufal Wafiq A�

Mahasiswa Departemen Manajemen, Fakultas Ekonomic and Management

IPB University

Email: [email protected], [email protected], [email protected], [email protected], [email protected]

Abstract

Compensation is an important factor for workers to foster a sense of enthusiasm and self-motivation in working to achieve company goals. On the other hand, the company must also understand the position and role of workers in it so that in determining the amount of compensation it can be determined in a balanced manner and minimize operational expenses that are too large. Both financial compensation and non-financial compensation, the company has an obligation to fulfill both of these things, so that the standard of living needs of workers can be met properly. The object of this research is PT Diva Jaya Trans, which is located in the city of Demak, Central Java. This company is engaged in the tourism transportation sector with a total of 7 bus fleets, and a total of 22 workers, and occupying various positions, such as admin, marketing, foreman, and crew. The research methods used are quantitative and qualitative sourced from trusted scientific journals and articles. This research focuses on the compensation sector and KHL. In this case, we identify and make improvements to the compensation system, namely by using the adhered method and the overlapping method. To determine the effectiveness of the two methods, salary data that has been obtained from the director through direct and online interviews was processed so that several gaps were found from the adhered method and the overlapping method. The final result of this study shows that the overlapping method is feasible to be considered for compensation changes in the company object, because according to the calculation it has a fairly good ratio.

Keywords: compensable factor; compensation management; adhered; overlapping

Received 20 November 2021, Revised 30 November 2021, Accepted 10 December 2021

Introduction

2. Research Location and Time

This MSME case study research uses a sample from the company PT Diva Jaya Trans, which is located in Bakalrejo Village 04/05 Demak, Central Java. The research has started from August 2021 and lasts for six weeks with all series to obtain information, data processing, data improvement, and to make papers.

3. Data Types and Sources

Data retrieval is done using primary data and secondary data. The data is processed in order to get calculations that are in accordance with the rules. We obtained primary and secondary data through interviews using amethod hybrid.

We also provide a questionnaire that must be filled out by company employees. In addition, we also use additional knowledge by using literature methods from websites, journals, and theses. This research is a quantitative and qualitative research by describing the compensation system that is run in the company PT Diva Jaya Trans.

4. Method of Data Processing and Analysis

Data analysis and processing methods used to construct a model system based compensation system job value and job grading PT Jaya Trans Diva is using Mapping Analysis Salary (Salary Mapping) adhered to and Salary Mappingoverlapping.

The primary legal materials used to write this journal are:

1. United Nations Guidelines for the Regulations of Computerized Personal Data Files 1990;

2. APEC Privacy Framework;

3. Malaysian Law AKTA 709: Protection of Personal Data 2010;

4. Singapore Act No. 20 of 2016: Info-communications Media Development Authority Act 2016;

Furthermore, the secondary legal materials used to write this journal are:

1. Scientific work;

2. Journal;

Results And Discussion

1. Overview of PT Diva Jaya Trans

�UKM PT Diva Jaya Trans is a small and medium-sized micro business with a small scale. This UKM is located in Bakalrejo Village 04/05 Demak, Central Java. UKM PT Diva Jaya Trans has an area of 1400m2 with a total fleet of seven. Meanwhile, PT Diva Jaya Trans has several parts in its organizational structure. Consists of admin, marketing, foreman and bus crew. The corporate culture adopted includes being religious, being professional, having integrity, being humble and serving wholeheartedly.

PT Diva Jaya Trans has a vision, which is to become a land tourism transportation company that excels in service quality, comfort and safety. Meanwhile, its missions include (1) Providing quality services by implementing customer orientation and implementing corporate culture for the creation of customer satisfaction, (2) Presenting human resources who are alert and responsible in running the company, (3) Taking part in implementing regulations government in implementing the safety system of tourism transport companies. This company aims to (1) generate income from tourism service entrepreneurs, (2) provide satisfaction for tourists who use tourism services, (3) introduce Indonesian tourism, (4) develop this tourism business so that it can progress and develop and has branches in various cities. other. The targets that PT Diva Jaya Trans set are (1) Increase revenue from Rp. 150,000,000.00 to Rp. 250,000,000.00 within 3 years, (2) Become the cheapest tourism bus in terms of cost and the best service from similar industries, (3) Enter new markets in the next 12 months not only in the Central Java area but can expand outside the region or off the island.

There are several cultures that PT �Diva Jaya Trans prioritizes, including religious. Employees always pray especially before and after carrying out their duties. Employees are also asked to be professional by maintaining the condition of the bus throughout the trip, maintaining the cleanliness of the bus every time it comes in/out of the garage, being disciplined to every rule that applies on the highway, always being on time, maintaining the good name of the company wherever and whenever. The spirit of integrity is also upheld here by being consistent with honesty and sincerity in working, always checking the condition of the bus before departure, recording the entire history of foam usage and maintenance, and always reconfirming the destination and departure time to consumers. Not to forget, employees are asked to remain humble by maintaining order and courtesy, being friendly, friendly, compact, and helping each other among workers.

2. Compensation System Overview PT Diva Jaya Trans

The compensation system found in the MSME PT Diva Jaya Trans can be analyzed using salary mapping based on position. When viewed based on its organizational structure, PT Diva Jaya Trans's MSMEs have several levels of positions. The highest level is occupied by the owner followed by admin, marketing, and foreman at the same level. The foreman oversees the position of a fairly large crew in this UMKM.

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Based on table 2, it can be seen that the total number of employees of PT Diva Jaya Trans is 22 people, with 18 men and 4 women. Female employees are placed in admin and marketing positions, while male employees are placed in the field sector, namely foreman and crew. Age is an important indicator for crew placement, where the core of the running of this company is in the workforce in the crew. The company targets that the composition of experience and toughness is an important requirement for the crew, because this will be a benchmark for the company's assessment by customers.

4. PT Diva Jaya Trans Employee Salary Analysis and Graph of the UMK and UMP

According to Bagijo HE (2021), wages are one of the important elements in the employment relationship, wages are a sign that workers have the right to their work, which is appropriate and appropriate to meet their needs. At the�� level of local government,�� the policy of wage determination is made in the Governor's decision as an administrative officer who is given the authority set the amount of the provincial minimum wage (UMP), the minimum wage districts / cities (UMK), maupun�� minimum wage sectoraldistricts / cities (UMSK).

Article 88 paragraph (1) of Law no. 13 of 2003 concerning Manpower, that "Workers or laborers have the right to earn income for a decent living for humanity". Based on these provisions, it is important to fulfill the human rights of every human worker in Indonesia, namely the criteria for a decent wage. Therefore, it is very important for business owners to provide wage components in the following forms:

a. Minimum wage;

b. Overtime wages;

c. Wages are absent from work due to absence;

d. Wages are absent from work due to other activities other than their work;

e. Wages for exercising the right to work rest time;

f. Form and method of payment of wages;

g. Fines and deductions from wages

h. Things that can be calculated with wages;

i. Proportionate wage structure and scale;

j. Wages for severance pay; and

k. Wages for income tax calculations.

The graph shows that the salary paid to 95% of the total employees (Admin 1, Marketing, Foreman, and Crew) of PT Diva Jaya Trans has exceeded the Central Java UMP of Rp. 1,798,979.00 and the UMK of Demak City of Rp. 2,511,526.00. There is only one employee (Admin 2) whose salary is between the UMP and UMK. This position has a different salary structure because the employee in question has only worked for 5 months (< 1 year) so he does not get his 13th salary, like other employees.

5. Compensation Design System based on Job Value and Job Grading

Compensation must be designed as well as possible so that employees can meet the needs of a decent life and survive in their current company. Business owners or companies must think about and analyze ways so that employees are satisfied and their work productivity will increase. Therefore, there are steps in determining the ideal compensation for employees at PT Diva Jaya Trans as follows:

a. Assigning the weight of each job factor Job

Evaluation is a process that determines the relative value of a job in relation to other jobs. (Sukwadi, 2014). Job evaluation aims to create internal consistency and external consistency in providing compensation or remuneration (Sukwadi and Oktevany, 2016). According to Marwansyah (2010), the main target of job evaluation is the satisfaction of employees and superiors with the compensation paid. According to Article 1 of Kepmenakertrans No. 49 / Men / IV / 2004 concerning the structure and scale of wages, the wage structure is the arrangement of wage levels from the lowest to the highest or vice versa from the highest to the lowest. Meanwhile, the wage scale is the range of nominal wages according to job groups.

The first step before evaluating the position, using themethod Given Grade or Min Max, is by weighting and assigning values to the factors and employee positions. In the compensation design at PT Diva Jaya Trans used as many as 10 assessment factors in measuring compensation, namely communication skills, work experience, decision making, human relations skills, working conditions, physical effort, visual attention, freedom of action, work complexity, risk of danger.

From these results it can be concluded that the compensation system in the form of salary at PT. Diva Trans Jaya is still not ideal because of thevalue spread irregularfrom one position level to another. This discrepancy can be seen in the spreads in Grade II - Grade IV where thevalue spreaddoes not increase, which is both 0%. Further irregularities can be seen in the salary obtained by positions occupying Grade IV which is smaller than the salaries of Grade II and III, while the salary that should be received by Grade IV is higher for Grades II and III. However, based on the results of the salary mapping above, it is found that the maximum salary for Grade VI (Crew) is actually lower than the maximum salary for Grade III (Foreman) and Grade II (marketing). On the basis of these things, it can be said that the compensation system at PT. Diva Trans Jaya is less than ideal. This shows that internal justice has not been created in the company.

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6. Compensable Factor

Working Experience

Experience is the training and development gained from previous work required to qualify for a position, plus the training and development on a job required for skills.

� Level 1: No experience

� Level 2: 1-12 Months

� Level 3:> 12 months - 24 months

� Level 4:> 24 months - 36 months

� Level 5: > 36 Months

(Dessler, G. 2015. Human Resources Management. Boston: Pearson) https://beta.ivorytraining.net/wp-content/uploads/2020/11/Human-Resource-Management-2c-16th -Edition.pdf

Visual Attention (Accuracy & Accuracy).

This factor assesses how much visual attention is required.

Level 1: Does not require visual attention.
Level 2: Needs attention but no burden.
Level 3: Requires careful attention and the load is quite large.
Level 4: Requires careful attention and the load is quite heavy.
Level 5: Needs very careful attention and very heavy loads.
Grade 6: A heavy load of attention for a sufficiently long period of time.

Job Evaluation Manual (Collages of Applied Arts and Technology)

Human Relation Skills, HR skills are active, face-to-face skills required by job holders for various relationships with others inside and outside the organization.

Level 1: Maintain a courteous and effective working relationship with others to request or submit information, ask questions or obtain clarification.
Level 2: The skills of persuasion or assertiveness and sensitivity to the other person's point of view are often needed to influence behavior, change opinions, or turn situations around.
Level 3: The highest level of interpersonal skills is usually required for positions where alternative or combined skills in understanding and motivating people are of the highest importance.

(Job, NHS 2013. NHS Job evaluation handbook NHS Job evaluation handbook Contents. (July).

https://cupdf.com/document/job-evaluation-handbook.html

Decision Making

Measures the level of accountability and decision making associated with the position.

Level 1: Work is controlled directly through the structured nature of the job itself or direct supervision by others. All deviations from the assigned work must be approved by the supervisor.
Level 2: Work is controlled through occasional checks for accuracy, quality, and compliance with detailed instructions or through the structured nature of the work itself. Some policies can be implemented within predetermined limits and procedures.
Level 3: The results of the completed work are evaluated for compliance with technical standards, conformance, and compliance with policies/procedures. Accept general direction regarding work responsibilities, discretion and judgment should be exercised in interpreting and implementing/following rules, guidelines and/or protocols.
Level 4: Work is evaluated relative to the overall functional policy or program in terms of feasibility, compatibility, and effectiveness. Receiving nominal directions regarding work responsibilities, policies and assessments must be carried out in translating organizational goals into the development / improvement of program strategies and related objectives and activities.

(Government of Newfoundland and Labrador Job Evaluation System (JES)) https://www.gov.nl.ca/exec/tbs/files/pdf-job-eval-jes-evaluation-framework.pdf

Freedom To Act)

This factor measures the extent to which incumbents are asked to take responsibility for their own actions and the actions of others, to use their own initiative and act independently, and discretion is given to job holders.

Level 1: Generally work with close supervision and procedures and / or practices are well established and have a standard and results to be achieved.
Level 2: Be guided by standard operating procedures (SOPs), good practices, set precedents and understand what results and standards are to be achieved. One is generally available for reference and work can be checked on a sample/random basis.
Level 3: Guided by a clear, precedent policy, protocol, procedure or code of conduct. Work is managed, not supervised, and results are assessed at agreed intervals.
Level 4: Expected results are defined but postholders determine the best way to achieve and are guided by broad employment principles and policies or regulations. Guidance can be provided by a colleague or an external reference point.
Level 5: Guided by broad public, organizational or occupational health policy, but most postholder situations need to define the way in which this is to be interpreted.
Level 6: Required to interpret overall healthcare policies and strategies, to set goals and standards.

Job Evaluation Manual (Collages of Applied Arts and Technology)

Working Conditions This

factor assesses the physical working conditions required.

Level 1: Very clean and air conditioned.
Level 2: Clean and there is air circulation.
Level 3: Adequate ventilation but sometimes dirty.
Level 4: Temperature varies and is gross.
Level 5: Temperature and humidity conditions are physically aggravating.
Grade 6: The condition is very severe and dangerous to health.

http://blu.djpbn.kemenkeu.go.id/index.php?r=publication/faq/definition&id=52

Working Complexity

Measures the amount and difficulty of analysis, problem solving and reasoning required to perform work-related tasks. (Source: Government of Newfoundland and Labrador Job Evaluation System (JES) Framework, Page 18-19)

Level 1: The work consists of procedures and related information obtained by close inspection or by reference to readily available sources. Choice involves recognizing real differences in situations, data, or factual information and learned or well-defined solutions to problems in clearly recognizable patterns.
Level 2: The work consists of various activities in the technical or professional field. Information is obtained through investigation, or research and testing, which requires initiative and judgment. Work involves analysis to decide what needs to be done and planning to organize the work; and it involves assessing various concrete or abstract problems or situations.

(Government of Newfoundland and Labrador Job Evaluation System (JES) Framework, Page 18-19) https://www.gov.nl.ca/exec/tbs/files/pdf-job-eval-jes-evaluation-framework.pdf

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Physical Effort

This factor measures the nature, level, frequency and duration of physical effort (continuous effort at the same rate or sudden burst of effort) required for the job. This takes into account any circumstances that could affect the level of effort required, such as working in awkward positions or confined spaces.

Grade 1: A combination of sitting, standing, and walking with little requirement for physical effort. There may be a requirement to exert light physical effort for a short period of time.
Level 2: There is often a requirement for moderate physical effort during shifts.
Grade 3: There is often a requirement to exert strenuous physical effort during a shift.
Grade 4: There is often a requirement to exert very strenuous physical effort during a shift.

(Government of Newfoundland and Labrador Job Evaluation System (JES))

https://www.gov.nl.ca/exec/tbs/files/pdf-job-eval-jes-evaluation-framework.pdf

Hazard

Risk This factor assesses how far physically dangerous.

Level 1: No danger.
Level 2: There is a slight danger of being injured.
Level 3: Can damage limbs.
Level 4: Can damage the eyes and head.
Level 5: Can be made blind or amputation
Level 6: Can kill lives.

Job Evaluation Manual (Collages of Applied Arts and Technology)

Communication Skills Communication

skills are used to measure the extent to which job holders interact with others. Work involving interpersonal interaction broader rated higher rank than those who do not have this requirement

Level 1: Communication of the path to the top, not much in touch with the outside (consumer)
Level 2: Communication to the top, sometimes in touch with the outside (consumer)
Level 3: Upward, downward communication and side-by-side cooperation, frequent contact with outsiders (consumers)

(University of London, job evaluation manual 1-12)

https://london.ac.uk/sites/default/files /uploads/Job-Evaluation.pdf

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f. Salary Mapping PT. Diva Jaya Trans Using the Adhered Point System

After we know the results of the salary mapping using the actual salary or the actual salary, it turns out that the compensation conditions applied are not ideal and improvements are needed using the Adhered method.

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After revamping the salary of the obtained ideal compensation system. It can be seen that from mid to mid each grade is always smaller than the spread. In addition, the difference in the interval or distance obtained is not too far and is in accordance with the provisions of the interval or distance that has been determined.

Conclusion

Based on the results of research and analysis that we have done, we can conclude that after analyzing and improving the payroll system, it can be concluded that an effective compensation system to be applied by PT. Diva Jaya Trans is to use the Overlapping method. This is because the overlapping method of salary distribution is more applicable because it is more rational and the gap difference is not too large and not burdensome (still reasonable and ideal). If it is applied adhered, it will have an impact on swelling expenses. So it is more effective to use the overlapping method which allows for overlapping salaries between grades.

REFERENCES

Bagijo HE. 2021. Authority of the Governor to Determine Wages After the Enforcement of Law Number 11 of 2020 concerning Job Creation: A Case Study of Determining the 2021 UMP and UMK in East Java. SOCIO YUSTISIA, 1(1), 2-4. https://doi.org/10.15642/masterofconstitutionallaw.v1i1.63.

Marwansyah. 2010. Human Resource Management. Bandung: Alphabeta.

Muljani N. 2002. Compensation as a Motivator to Improve Employee Performance. Journal of Management & Entrepreneurship 4 (2): 108-122

Sukwadi, R. 2014. Improvement of Basic Employee Salary Structure Based on Position Analysis and Evaluation Results. Industry Spectrum 12(1):93-104.

Sukwadi R, Oktevany L. 2016. Analysis and Job Evaluation in Textile Companies. Journal of Industrial Systems Engineering 5 (1): 1-2.

� , Khair H. 2019. The Effect of Leadership and Compensation on Job Satisfaction Through Work Motivation. Scientific Journal of Masters in Management 2 (1): 69-88

Position	Gender	Age	Length of Work (Years)
Director / Owner (1 Person)	Male	20 years	2 years
Admin (2 people)	Admin 1 and 2: Female	Admin 1: 25 Admin 2: 27	Admin 1: 2 Years Admin 2: 5 Months
Marketing (2 Persons)	Marketing 1 and 2: Female	Marketing 1: 29 Marketing 2: 32	Marketing 1: 2 Years Marketing 2: 2 Years
Foreman (1 Person)	Male	45 Years	2 Years
Crew (17 Persons)	Crew 1 -17: Male	30 - 50 Years	Crew 1 - 11: 2 Years Crew 12 - 17: 1 Years