The Analysis of Compensation System (Case Study on PT. Luxindo Raya)

Abstract

Compensation system in a company is really important because it relates with reward for its employees. If the used compensation system was not satisfied the SR's, the will be not loyal to the company. But in the other hand, the company is trying to create efficiency. LUX is using single system of compensation. It pays their SR's based on vanable salary of selling products. The fixed salary was given only for the first three months on the training period. Then, the salary is given only based on how many point the SR could collect by selling some unit products. In the other side, this system is not satisfying SR because there are no reward when will SRcannot come for example they are sick. But if they can sell many products, they will get a big reward too. This company called this system as unlimited salary. According to the researcher analysis, this single system cannot influence theSRto offer the company products actively. It can beproven from the SR's data that there are many SR's joint and so does SR's quit in the company. So, it is better for company to pay the salary for time when SR's cannot come as fixed salary. Even though it is in small amount of money it can create SR's loyalty.