Employees wish to do the minimum amount of work but with the highest salary possible. In contrast, management needs maximum productivity with the lowest salary possible. Achieving the equilibrium between these two demands is the key to finding the best remuneration technique.
It was said by Ir. Sapta Putra Yadi, the director of KNOCO Indonesia, when he was a guest lecture for the MBA ITB Bandung Campus Wednesday (2/2/2022). He explained that the organizational structure is vital in the Human Resouce Management (HRM) framework, along with human resource strategies, talent management, and remuneration.
For employers, remuneration is essential to attract candidates, motivate workers to perform better, and maintain competitiveness in the industry. On the other hand, employees’ purpose for remuneration consists of a better quality of life, perfect work-life balance, and recognition for self-esteem.
“Known as 3P, the three factors for optimizing remuneration are Pay for Position, Pay for Person, and Pay for Performance,” explained Sapta.
Building a framework for remuneration begins with job analysis, description, evaluation, and eventually salary survey and paying salary. After explaining the legal constraints briefly on pay practices in Indonesia, Sapta answered a few questions from students.