Purpose of Remuneration
So that the following are clearer, some of the objectives of remuneration are:
Encourage the creation of qualified "Human Resources" HR.
To maintain productive Human Resources, so as not to move to other companies and form service-oriented behaviors and to reduce or prevent acts of KKN "Corruption & Collusion Corruption".
With a remuneration system can create positive competition between workers in a company. Because with this system it will be seen which workers are diligent, have the will to learn and those who are not. So the workforce will have the motivation to continue to develop themselves.
To generate maximum income or profit for a company by utilizing capital as effectively and efficiently as possible.
To create and improve the welfare of the workforce, so that it will have an impact on increasing productivity at work.
To create good and clean corporate governance.
Example of Calculation of Employee Remuneration
Good and Ideal Remuneration System
A good remuneration system is not just distinguishing employees from mediocre or lazy achievers. Companies must also consider the internal and external problems of the company. What is meant here is that sometimes many companies pay high salaries to new employees just because they already have experience working abroad. Things like this should be considered by the company because it can cause jealousy from other senior employees if the decision to pay the new employee is not in accordance with his performance in the field. In addition, companies must also respond to external environmental conditions regarding the level of remuneration, this can be done by taking into account existing salary surveys.
A good remuneration system in the company can also be done by giving an annual appreciation or award for employees. Giving work appreciation from this company can create a positive outlook from employees because he will feel cared for and well appreciated for his performance so far. As if - what employees do not just follow the existing job list, but fulfill the work passion that is in a person.
Furthermore, a good remuneration system also needs to consider several things, including:
Conformity to market prices.
Required rules in the payroll system. A simple example is that, if there is an employee who is his own brother and claims to be happy working in our company, the salary provided must be in accordance with the existing salary standards in accordance with other companies in the same industry. You can also determine based on the UMR, or an article on salary surveys in the print media.
Hierarchy in organizations
In the organizational structure, of course those who have high salaries are among the top level class of the organization as described in a job level. However, a high position and salary is not a comfortable position because the higher a person's level is, the heavier the responsibilities that are on his shoulders.
Internal equity
It means that it is fair and equitable where the job value paid is in accordance with the contributions that exist in each performance. The higher the salary received, the greater the contribution of these employees in a company.
Manageable & Controllable
Salary that has been designed in a company is a design that can be controlled by the company. The use of clear formulas in calculating salary increases, rewards, benefits - existing benefits must be able to be controlled in accordance with the ability of the company so that later it will not complicate the company itself.
A little brief explanation for a good remuneration system in Indonesia is related to the convenience of the work of the employees themselves. Using Japanese management techniques may be suitable for workers in Indonesia, where there is a significant share of workers participating in running the company. This can benefit both parties where employees will feel they have an important part in the company and from the side of the company will easily continue to improve. Giving bonuses based on performance is also one of the best systems in the remuneration system in Indonesia.
Elements of Remuneration
There are two elements in remuneration including compensation and bonus / commission. Compensation is all things received by workers / employees both physical and non-physical. This can be calculated and can be given to workers and compensation is usually not taxed.
While bonuses / commissions are rewards given to workers / employees with a percentage calculation, for example profits on the products they have sold. This is intended as a form of appreciation from the sale of products it does. Commissions are usually combined with salary but sometimes there are also companies that only apply the commission system without salary.
But the term remuneration also cannot be separated from salary and wages. Salary is the compensation given to workers / employees based on a certain period of time, for example on every day, weekly and also monthly.
Whereas what is meant by wages is the compensation received by workers / employees based on a fixed amount of time, so you can use terms such as hourly rates, per-document rates and others that can indeed be calculated. So it can be concluded that what is meant by remuneration is a reward given by the company to its workforce because it has contributed to the company in helping achieve its goals.
Thus the discussion on "Remuneration" hopefully with this review can add insight and knowledge of you all, thank you very much for your visit