Title: STRATEGIC COMPENSATION SYSTEM DESIGN IN XY MINING COMPANY
Author: BIMO DWI MURHANINDYO
Item Type : Thesis (Thesis)
Affiliations: Master of Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Compensation is a tool used by companies to attract, motivate and retain the best talents amidst the competitive industrial world. Financial compensation and non-financial compensation given to employees must have a logical and rational basis. The ideal compensation system in an organization must be able to be linked to the organization's goals and strategies as well as a balance between the company's profits and costs and the living needs and expectations of employees. This research aims to design a compensation system that is in accordance with the vision, mission and strategy of PT. XYZ and explains the various stages of compiling a compensation system. This research uses a case study design with an exploratory approach. because the focus of the research is related to answering the question of what strategic compensation design is appropriate for PT. XYZ, seen from the perspective of top management. This research was conducted at PT. XYZ, a coal mining company which is also a subsidiary of the Cement Group. Research data was collected from interviews with key sources and various archival records held by the company. The research stage begins with interviews with key sources (top management), which is then continued with the preparation of a compensation system. Compilation of the compensation system starts from job analysis, job evaluation using the Hay method, external compensation survey, preparation of job grading and basic salary structure, additional benefits and incentives/bonuses for employees. The basic salary structure is slightly below the average for the coal mining industry in general. The allowances provided include position allowances, meal allowances, transportation allowances, telecommunications allowances, vehicles and housing. Additional benefits provided include additional paid leave, employee recreation funds, life and education insurance, Car Ownership Program, House Ownership Program, and Corporate Credit Card. Bonuses/incentives given to motivate employee performance are profit sharing, gain sharing and stock options. Bonuses are awarded based on the results of employee performance evaluations at the end of the year. Compensation system prepared for the needs of PT. XYZ has fulfilled the strategic elements by aligning it with the company's vision, mission and general business strategy. The compensation system developed also pays attention to aspects of internal justice through the job evaluation process with the Hay Job Evaluation System. External fairness is created by conducting compensation surveys in industry in general and the coal industry. The basic salary structure prepared is expected to attract employees to work at PT. XYZ. It is hoped that additional benefits and bonuses will be able to retain and motivate employees to always make the best contribution to the company's progress.
Keywords: Strategic compensation, Hay Job Evaluation Method
Sources: http://repository.unair.ac.id/38448/
