Definition of Remuneration
In this case Remuneration is one of the terms that is always related to the world of work, especially in the labor salary system. However, with the development of the era this term is often used contextually, so it has various meanings. But in the government bureaucracy and in general the term remuneration is always related to the worker's salary system based on work values, with the aim of creating a system of better and cleaner governance.
If in company this term is an act of retaliation received by the workforce for the achievement or service that has been provided to the company. Then on this occasion, let's understand together in-depth about remuneration.
Today, the term remuneration is often discussed by workers, both in private and government instances. Remuneration itself is closely related to the welfare of employees in a company. Then, to clarify the meaning of remuneration, some experts have their own point of view to explain this.
Definition of Remuneration According to Experts
Mochammad Surya (2004: 8) states that "Remuneration has the meaning of" something "that an employee receives in return for the contribution he has made to the organization at work. Remuneration has a broader meaning than salary, because it covers all rewards, both in the form of money and goods, both those that are given directly or indirectly, and whether ruitn or not routine, direct benefits consist of salary / wages, allowances, benefits, benefits specifically, bonuses related to or not related to achievement and various types of assistance consisting of facilities, health, pension funds, salaries, leave, disaster benefits. "
According Kusnaedi defines remuneration as a reward or repayment of services provided by the company to the workforce as a result of the achievements that have been given in order to achieve company goals. So, it can be concluded that remuneration is a reward or reward from the company to employees for their business and performance both in financial and non-financial forms with the aim of welfare of the employee.
Remuneration system itself will be different - different in each company, depending on how the work system used in the company. As can be exemplified is the difference in the unique remuneration system in the field of insurance work. The remuneration system in the insurance field itself can resemble large rewards according to the targets they have achieved.
Then, the amount of remuneration for each company is different. The difference occurs based on several factors that greatly affect the level of remuneration, these factors include labor demand and supply, company capability, ability and skills of labor, the role of the company, labor unions, the size of the work risk, government intervention, and living expenses.
However, basically there are 3 main factors that form the basis that must be considered in determining the level of employee remuneration. These three factors include:
Position or Position
The value of the contribution made by each function or position for the organization can be seen from 3 main things, namely, the ability demands, problem solving and responsibility of the employees themselves. This factor determines how much the basic salary should be received in return for the position or position they occupy.
Individual Competency
The competence of each individual possessed and brought to carry out the work as required is one of the other assessment factors separately to determine the level of remuneration. This factor is generally calculated in the form of additional revenue to be received in fringe benefits or incentives.
The performance
Achievements or performance results that can be shown well by individuals, teams or organizations in achieving work targets specified in the organization are considered by the company to provide large rewards, both in the form of bonuses and incentives.