INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH ANALYSIS OF JOB VALUE-BASED COMPENSATION SYSTEM AT AUTOMOTIVE COMPANY XYZ IN BALI PROVINCE

Compensation is a form of reward from an organization for the performance of its members. There are 2 types of compensation, namely financial and non-financial compensation. Compensation, especially the financial type, will affect the welfare of the recipient. This study will discuss the improvement of compensation in accordance with the method point system with company policy. The studied company is a company that is engaged in the automotive field that focuses on used-vehicle transactions, sale of spare parts, and vehicle services. The purpose of this research is (1) to develop job grading and job values for employees of company XYZ based on compensable factors according to scientific journals (2) to evaluate compensation system improvements that are appropriate and effective to be imp lemented in company XYZ. The data in this study are quantitative, primary data obtained through direct interviews and the results of questionnaires and secondary data obtained through literature studies and relevant reports. The method used is salary mapping adhered, and salary mapping overlapping. The result of the research shows that there are 10 compensable factors that become the job evaluation factors that form the basis for compensation. All factors are divided into 3 parts according to Hay's method, namely know-how, problem solving, and accountability. The results of the salary reform design that have been obtained can be used as the company's new payroll system.


Introduction
In the efforts made to achieve the company's goals, the problems faced are becoming increasingly complex along with technological developments in the current era of globalization.One way that companies can do to ensure the achievement of goal alignment, companies can pay attention by giving compensation to their employees, this is because compensation is a reciprocal relationship between companies and employees.

pments in the
current era of globalization.One way that companies can do to ensure the achievement of goal alignment, companies can pay attention by giving compensation to their employees, this is because compensation is a reciprocal relationship between companies and employees.

Compensation is a form of reward received by individuals from organizational performance and tasks.According to (Kurniawan, 2014), compensation is all Compensation is a form of reward received by individuals from organizational performance and tasks.According to (Kurniawan, 2014), compensation is all forms received by employees as compensation for the performance they provide to the company.In order to create a productive work environment, compensation must be given fairly and equitably.Compensation must be submitted according to the contribution given to the company in the form of bonuses, subsidies and welfare must be included in the pay system (Acheampong, 2010).
forms received by employees as compensation for the performance they provide to the company.In order to create a productive work environment, compensation must be given fairly and equitably.Compensation must be submitted according to the contribution given to the company in the form of bonuses, subsidies and welfare must be included in the pay system (Acheampong, 2010).

According to (Simamora, 2006) in general, compensation components can be divided into direct compensation and indirect compensation.

Financial compensat According to (Simamora, 2006) in general, compensation components can be divided into direct compensation and indirect compensation.
Financial compensation Sintya Ismana Gardenia Tanaya, Miranda Anastasya Veronica, Muhammad Naufal, Ehug Togi, Siti Tasya Octa Aeni (directfinancial compensation) composed of mercenaries obtained a person in the form of salaries, wages, bonuses.Indirect financial compensation or referred to as allowances includes all financial rewards that are not covered by direct compensation.Nonfinancial compensation (non-financial compensation) consists of a person's job satisfaction derived from the work or from the psychological environment in which people work.
on Sintya Ismana Gardenia Tanaya, Miranda Anastasya Veronica, Muhammad Naufal, Ehug Togi, Siti Tasya Octa Aeni (directfinancial compe sation) composed of mercenaries obtained a person in the form of salaries, wages, bonuses.Indirect financial compensation or referred to as allowances includes all financial rewards that are not covered by direct compensation.Nonfinancial compensation (non-financial compensation) consists of a person's job satisfaction derived from the work or from the psychological environment in which people work.

The compensation given must be appropriate, fair, satisfying, motivating, rewarding and in accordance with needs (Lewa & Subowo, 2005).Compensation will pr The compensation given must be appropriate, fair, satisfying, motivating, rewarding and in accordance with needs (Lewa & Subowo, 2005).Compensation will provide benefits to both parties, both the company and the employee.According to Notoatmodjo (1998), the objectives of the compensation policy include:  Forms of appreciation for employee performance  Ensure fairness of employee salaries  Retain employees or reduce turnover employee  Obtainemployees top-talented  Controlling operational costs  Comply with labor-related regulations A decent and fair salary is a salary to employees who are in accordance with the workload and responsibilities.In general, there are three types of payroll used by companies, namely pay for performance, pay for position, and pay for people (Kartika et al, 2016).Pay for people are all rights received by employees by considering the competence of employees.Pay for performance is the acceptance of employees based on their performance appraisal within a certain period.Pay for position is the acceptance of employees based on the level of position, each level of position has a different weight based on the dominant factors.
vide benefits to both parties, both the company and the employee.According to Notoatmodjo (1998), the objectives of the compensation policy include:  Forms of appreciation for employee performance  Ensure fairness of employee salaries  Retain employees or reduce turnover employee  Obtainemployees top-talented  Controlling operational costs  Comply with labor-related regulations A decent and fair salary is a salary to employees who are in accordance with the workload and responsibilities.In general, there are three types of payroll used by companies, namely pay for performance, pay for position, and pay for people (Kartika et al, 2016).Pay for people are all rights received by employees by considering the competence of employees.Pay for performance is the acceptance of employees based on their performance appraisal within a certain period.Pay for position is the acceptance of employees based on the level of position, each level of position has a different weight based on the dominant factors.

This research takes a case study in the automotive industry.XYZ Company is a medium-scale enterprises engaged in the field of automotive selling a used vehicle p This research takes a case study in the automotive industry.XYZ Company is a medium-scale enterprises engaged in the field of automotive selling a used vehicle purchase, sell spareparts,as well as provide service vehicles.In this business there are 20 employees with different focuses, namely sales, mechanic, and finance.Application ofmethod salary mapping adhered and overlapping for the payroll system is carried out to match the suitability of the compensation system with the job value of each employee in this business.
rchase, sell spareparts,as well as provide service vehicles.In this business there are 20 employees with different focuses, namely sales, mechanic, and finance.Application ofmethod salary mapping adhered and overlapping for the payroll system is carried out to match the suitability of the compensation system with the job value of each employee in this business.

This study will analyze how the formulation of job grading and job value for XYZ company employees based on compensable factors according to scientific journals, ev This study will analyze how the formulation of job grading and job value for XYZ company employees based on compensable factors according to scientific journals, evaluation of compensation system improvements that are appropriate and effective to be implemented in XYZ companies.
luation of compensation system improvements that are appropriate and effective to be implemented in XYZ companies.

Based on the description, the purpose of this research is to compile job grading and job values for XYZ company employees based on compensable factors according to Based on the description, the purpose of this research is to compile job grading and job values for XYZ company employees based on compensable factors according to scientific journals, carry out an evaluation of the compensation system improvement that is appropriate and effective to be implemented in XYZ company.
cientific journals, carry out an evaluation of the compensation system improvement that is appropriate and effective to be implemented in XYZ company.

The scope of the research is limited to the discussion of the financial compensation system with a sample of XYZ company employees based on job value.Compensation d The scope of the research is limited to the discussion of the financial compensation system with a sample of XYZ company employees based on job value.Compensation data is also in the form of basic salary which will be researched and evaluated using ansystem adheredsalary mapping and overlapping.
ta is also in the form of basic salary which will be researched and evaluated using ansystem adheredsalary mapping and overlapping.


Method

The research was conducted at xyz company located in Denpasar City, Bali Province.The research was conducted in August -October 2021 and was carried out gra

Method
The research was conducted at xyz company located in Denpasar City, Bali Province.The research was conducted in August -October 2021 and was carried out gradually to obtain information and data, data processing, to the preparation of works.The types of data sources that in this study are secondary data and primary data.

ally to
obtain information and data, data processing, to the preparation of works.The types of data sources that in this study are secondary data and primary data.


Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province

The primary data we get comes from inperson interviews and giving questionnaires to company owners.In addition, we also use secondary data derived from various literatures from journals and thesis.This research is a quantitative and qualitative research by describing the compensation sy

Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province
The primary data we get comes from inperson interviews and giving questionnaires to company owners.In addition, we also use secondary data derived from various literatures from journals and thesis.This research is a quantitative and qualitative research by describing the compensation system run by XYZ company.
tem run by XYZ company.

In this study, we used Salary Mapping analysis and point In this study, we used Salary Mapping analysis and point system method as data processing and analysis methods to compile a job value compensation system model system in xyz company.According to Mondy (2008), in the point system, experts provide and map the value of numbers for certain work factors such as the knowledge needed and the amount of value that has been mapped will provide a quantitative assessment of the relative value of the work.The steps of the point system method are: a. Selection of SMEs b.Identify compensable factors based on core business c.Define levels and define each compensable factor d. Determine the weight of each factor by Analytical Hierarchy Process (AHP) e. Determine the point value of each factor f. Calculate the job value of each job title g.Determine job grading h.Calculates the mapping of the base salary of each grade with adhered (berimpit) and overlapping methods i. Determine the ideal compensation system for the company XYZ.j.

Respondent Profile
Characteristics of respondents consist of gender, age, length of work and position.

Total Bobot 237,75
Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province

ystem At Automotive
Company XYZ In Bali Province

The following are the steps in calculating the compens The following are the steps in calculating the compensable factor weighting: The owner compares the compensable factor one with the compensable factor two, and assigns a weight based on the level of importance.And so on.
ble factor weighting: The owner compares the c

vel of importance.And s
on.

After the weights in all columns, add up the weights of each compensable factor.


Determination of Facto After the weights in all columns, add up the weights of each compensable factor.

Determination of Factor Point Value and Job Value
Point Value and Job Value

The next step is to assign a value or points to the factor in each position which shows how important the factor must be for each position.Then determine the Job Value for each position.The following are the steps in the preparation of Job Value: Give a value to the factors for each position, the value is based on the level of importance of the factors for the job.Make sure the levels cover all positions in a position from the highest position to the lowest position.

After determining the value for each position, multiply each factor point value and the weight obtained in the previous AHP method.Then the job value is obtained for each position.

Sort the job titles from the highest job value level to the lowest level.Sintya Ismana Gardenia Tanaya, Miranda Anastasy The next step is to assign a value or points to the factor in each position which shows how important the factor must be for each position.Then determine the Job Value for each position.The following are the steps in the preparation of Job Value: Give a value to the factors for each position, the value is based on the level of importance of the factors for the job.Make sure the levels cover all positions in a position from the highest position to the lowest position.
After determining the value for each position, multiply each factor point value and the weight obtained in the previous AHP method.Then the job value is obtained for each position.

Planning Job Grading
In this study, we used themethod given grade.The calculation method is to reduce the total weight value of the highest position with the lowest, then divided by the number of existing grades, which is five.This division is based on the hierarchical level in the company, so we get a range for the interval of each grade.
In this study, we used themethod given grade.The calculation method is to reduce the total weight value of the highest position with the lowest, then divided by the number of existing grades, which is five.This division is based on the hierarchical level in the company, so we get a range for the interval of each grade.

Here are the steps to get the job grading above: 1. Calculating the interval at each given grade by calculating the difference between the job values highest and lowestand then dividing by the number of grades to be made.=value Job [(Thehighest-Jobvalue) lowest / 5] = [(1033-323) / 5] = 142 2. To obtain Here are the steps to get the job grading above: 1. Calculating the interval at each given grade by calculating the difference between the job values highest and lowestand then dividing by the number of grades to be made.=value Job [(Thehighest-Jobvalue) lowest / 5] = [(1033-323) / 5] = 142 2. To obtain the upper limit of Given I, the job value is lowestadded to theinterval given grade that has been obtained previously.= 323 + 142 = 465 3. The upper limit of Given I is used as the lower limit of Given II.Then if added to theinterval given grade it will produce the upper limit of Grade II.And so on until aobtained Givengrade is VIwith ainterval Given between 891 to 1033.So that 5 positions are obtained as follows: the upper limit of Given I, the job value is lowestadded to theinterval given grade that has been obtained previously.= 323 + 142 = 465 3. The upper limit of Given I is used as the lower limit of Given II.Then if added to theinterval given grade it will produce the upper limit of Grade II.And so on until aobtained Givengrade is VIwith ainterval Given between 891 to 1033.So that positions are obtained as follows:

Sintya Ismana Gardenia Tanaya, Miranda Anastasya Veronica, Muhammad Naufal, Ehug Togi, Siti Tasya Octa Aeni Rp2,300,000 Rp2,300,000 Rp2,530,000 Rp2,760,000 17.67% 20% I 2

Rp4,000,000 Rp2,0 Sintya Ismana Gardenia Tanaya, Miranda Anastasya Veronica, Muhammad Naufal, Ehug Togi, Siti Tasya Octa Aeni Rp2,300,000 Rp2,300,000 Rp2,530,000 Rp2,760,000 17.67% 20% I 2 Rp4,000,000 Rp2,000,000 Rp2,150,000 Rp2,300,000 15% 0,000 Rp2,150,000 Rp2,300,000 15%

Total 20

Rp65,216,000


Figure 1 Illustration of Compensation System adhered to (coincide)

After we know the results of the salary mapping using Total 20 Rp65,216,000

Figure 1 Illustration of Compensation System adhered to (coincide)
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 themethod Adhered .After reforming the salary, the ideal compensation system is obtained.
he actual salary or the actual salary, it turns out that the compensation conditions applied are not id

ary, the ideal compen
ation system is obtained.

It can be seen 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.


XYZ Company Salary Mapping Using theMetho It can be seen 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.

XYZ Company Salary Mapping Using theMethod Overlapping
Overlapping

In making salary adjustments at XYZ company, in addition to using themethod Adhered, it can also be done using themethod overlapping.The most striking difference from themethod Adhered is that the maximum value of the previous class can be greater than the minimum value of the next class.After reforming the salary, the ideal compensation system is obtained.It can be seen that from mid to mid each grade is always smaller than the spread.In addition, the difference in In making salary adjustments at XYZ company, in addition to using themethod Adhered, it can also be done using themethod overlapping.The most striking difference from themethod Adhered is that the maximum value of the previous class can be greater than the minimum value of the next class.After reforming the salary, the ideal compensation system is obtained.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.
the interval or distance obtained is not too far and is in accordance with the provisions of

Managerial Implications
nagerial Implications

Based on the discussion of the payroll system, company XYZ can increase salaries that are in an under Based on the discussion of the payroll system, company XYZ can increase salaries that are in an under paid condition and reduce or limit 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 principle of internal justice.
paid condition and reduce or limit 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 principle of internal justice.


Figure 2. Illustration of theCompensation System Overlapping (Overlapping)

Based on the salary improvement using the adhered method, there is a difference between the actual salary at XYZ company and the adhered salary.The total principal is Rp.54,000,000 and the total new salary based on the adhered method is Rp.65,216,000.So the difference between the existing salary and the newly adhered salary is (Rp 11,216,000).Likewise, with the improvement of the sal

Figure 2. Illustration of theCompensation System Overlapping (Overlapping)
Based on the salary improvement using the adhered method, there is a difference between the actual salary at XYZ company and the adhered salary.The total principal is Rp.54,000,000 and the total new salary based on the adhered method is Rp.65,216,000.So the difference between the existing salary and the newly adhered salary is (Rp 11,216,000).Likewise, with the improvement of the salary overlapping method, there is a difference between the actual salary at company XYZ and the overlapping salary.The total actual salary is Rp.54,000,000 and the total new salary based on the overlapping method is Rp.64,535,709.So the difference between the actual salary and the overlapping salary is (Rp 10,535,709).
ry overlapping method, there is a difference between the actual salary at company XYZ and the overlapping salary.The total actual salary is Rp.54,000,000 and the total new salary based on the overlapping method is Rp.64,535,709.So the difference between the actual salary and the overlapping salary is (Rp 10,535,709).

Therefore, the recommended payroll method in calculating salaries is themethod ov Therefore, the recommended payroll method in calculating salaries is themethod overlapping because it is considered more cost effective than thepayroll method adhered.

lapping because it is considered more cost effective than thepayrol
method adhered.


Conclusion

Based on the results of research and analysis that have been carried out and described previously, the following conclusions can be drawn: 1.Company XYZ did not have a salary structure from the start, so by using job grading, salary classification was impr

Conclusion
Based on the results of research and analysis that have been carried out and described previously, the following conclusions can be drawn: 1.Company XYZ did not have a salary structure from the start, so by using job grading, salary classification was improved, so that 5obtained grades were in the salary structure.The highest group (grade 5) is only filled by managers.At grade 4 filled by supervisors in the field of sales, financial, and mechanical.In the grade thirdfilled by the staff,the staff counter sales, administration, salesman, service/ repair, and spare parts.In grade 2 onlyfilled cashiers are, and grade 1 is only filled by drivers.2. Based on the results ofpreparation compensable factor, the factors that determine the wages ofemployees XYZ company are education, experience, communication, analysis and problem solving, freedom of action, working conditions, customer service orientation, ved, so that 5obtained grades were in the salary structure.The highest group grade 5) is only filled by managers.At grade 4 filled by supervisors in the field of sales, financial, and mechanical.In the grade thirdfilled by the staff,the staff counter s

es, administration, salesman, service/ repair, and spar
parts.In grade 2 onlyfilled cashiers are, and grade 1 is only filled by drivers.2. Based on the results ofpreparation compensable factor, the factors that determine the wages ofemployees XYZ company are education, experience, communication, analysis and problem solving, freedom of action, working conditions, customer service orientation,

Table 2 Determination of factor weights with AHP
2
table. 1
Table 1Profile of RespondentsGenderAge (years)Length of employment (years)ML<2525-30>30<44-6>6Manager111Sales Supervisor111Financial Controller111Mechanical Supervisor111Counter Sales21111Staff Administrative111Service

Table 2 Determination of factor weights with AHP
table. 1

taff5514Spare part staff
22Salesman31221Cashier111Driver224Total51541246104Designing the Ideal CompensationCompensation factors must be general andSystem in XYZ Companyuniversal and contain the main characteristicsCompensable Factors Formulationof the type of work (core business). Inhelping to analyze compensable factors, thisResults And Discussionstudy uses an ap

50%IV3Rp13,
00,000 Rp3,450,000 Rp4,226,250 Rp5,002,500 36.11% 45%III13Rp38,916,000 Rp2,760,000 Rp3,105,000 Rp3,450,000 22.73% 25%III1

Table 7
7
is a compensation arrangement using the Adhered method, according to the data in the table, the Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province spread in operations is around 10-50% and the spread level increases according to the position held.


Table 8 Salary Mapping Method Overlapping Grade Total Persons Total Salary New Salary Structure Increase & Spread
8MinMidpointMaximumMid toSpreadMid
Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province

Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province Based on Table6below, the following results are obtained: a. Grade V (Manager), the salary given is not ideal (X).b.Grade IV (Sales SPV, Financial Controller,

Table 7
is a compensation arrangement using the Adhered method, according to the data in the table, the Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province spread in operations is around 10-50% and the spread level increases according to the position held.

Table 8 Salary Mapping Method Overlapping Grade Total Persons Total Salary New Salary Structure Increase & Spread
Analysis of Job Value-Based Compensation System At Automotive Company XYZ In Bali Province