Compensation System Design and Analysis based on Job
Values for Small and Medium Enterprise in Cullinary
Cluster at Bogor City
Lindawati Kartika
1
, Roni Jayawinangun
2
, and Sophie Tiara Adriaty
3
1
Lecturer in Department of Management Faculty of Economics and Management, Bogor
Agricultural University, Indonesia
2
Lecturer at Departemenr of Communication Science, University of Pakuan Bogor, Indonesia
3
Master Student in Department of Management Faculty of Economics and Management, Bogor
Agricultural University, Indonesia
Abstract. The objective of this research is to formulate Base Pay Compensation
System for Small Medium Enterprise (SME) in culinary cluster at Bogor City
based on Position and job Value in order to increase internal and external equity.
The subjects of this study are 24 SME in cullinary cluster with 13 (thirteen)
critical positions. Data collection used primary and secondary data using
questionaire, observation, in depth interview and literature study. Every
compensable factors defined by expert panel. Data processing and analysis on
this study based on Hay system concept, point system and eckenrode methode to
formulate the job grading and job value. The result of this research were ten
compensable factors which affected the job value which are formal education,
working experience, managerial skill, human relation skill, creativity, physical
attempted, responsibility of supervising, risk of job, asset responsibility, and
decision making. Formal education was the highest subfactor affecting the
compensation paid to an employee by an employer. The average salary for the
entry level starts from IDR 1.8 million and for top management level is up to IDR
5.9 millions.
Keyword: Base pay · Cullinary cluster · Job grading · Job value · SMEs
1 Introduction
Compensation is one of the important factors to improve performance of human
resources. There are two types of compensation, there are financial and nonfinancial
compensation. The wage or salaries as a form of direct financial compensation are given
as a reward from the company to the workers due to the effort. It generates in a
production process. The amount of wages given to employees is influenced by the
government regulation in the minimum wage payment through Upah Minimum
Provinsi (UMP) or Upah Minimum Kota (UMK).
The determination of UMR and UMK by government was conducted to keep the
worker’s wages in balanced and is not under the poverty as the minimum salaries played
a role reducing inequality of wage in Indonesia [1]. The minimum wage has an effect
598
Kartika, L., Jayawinangun, R. and Adriaty, S.
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinar y Cluster at Bogor City.
DOI: 10.5220/0010523800002900
In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA 2019), pages 598-610
ISBN: 978-989-758-582-1; ISSN: 2655-9064
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

on worker’s salaries, where the minimum of wage is set so in a wage sector especially
the formal sectors will be increase.
Bogor is the one of major city in West Java has a total population of 1.1 million
in 2016 [2]. It is a city with the high potential in the development of small and medium
industries. Micro, small and medium industries UMKM classes have different versions
based on some criteria. Table 1 shows UMKM classification based on UU No. 20 tahun
2008, International Finance Corporation and Central Bureau of Statistic.
Table 1. SMEs classification based on criteria.
Criteria
UU No. 20 Year 2008 International Finance
Corporation
Central Bureau of
Statistic
Small
Enterprise
Middle
Enterprise
Small
Enterprise
Middle
Enterprise
Small
Enterprise
Middle
Enterprise
Omzet
(IDR)
300 million-
2.5 billion
2.5 billion-
50 billion
100 thousand-
3 million
100 thousand-
3 million
- -
Asset
(IDR)
50 million-
500 million
500 million-
10 billion
3 million-
15 million
3 million-
15 million
- -
Labour
Amount
- - 11-50 51-300 5-19 20-99
Source: Central Bureau of Statistic 2018
The regulation regarding the standard of the city or district minimum wage (UMK)
have also been governed by the decree of the West Java Governor about the UMK. In
2019 Bogor’s UMK was determined to be IDR 3.842.785,54 while West Java’s UMP
was IDR 1.668.372. Bogor is not only has agricultural potential but also it becomes the
tourist destination. The tourism development brings impact at the business condition.
The tourism development gives impacts especially for the culinary industries such as
restaurant and cafes. Bogor gets the second ranks after Bandung. The number of
restaurants or eateries has increased since 2015. There are 130 restaurant in 2015.
Recently from 130 become 162 restaurant in 2016 [2]. It shows that Bogor has a great
potential in the business culinary sectors. The great potential in the culinary sectors is
supposed to be exploited well.
Not only the number of culinary industries but also the welfare of culinary human
resource should be noticed. One of the highlights is the realization of Decent Work or
commonly known as a job feasibility for the employee. This effort is parallel with one
of the efforts in achieving the Sustainable Development Goals (SDG). Number 8
contains the effort to promote sustainability of inclusive and sustainable economic
growth, a productive and comprehensive opportunity and proper job for all
[3].However until 2019 there is still a lot of effort hasn’t implemented the system. Most
business especially small and medium industries have not implemented system based
on the UMK because it is financially unable to hire the employee with the standard.
Picture 1 show the average of employee salaries in Bogor’s restaurant compare to the
Bogor’s UMK and West Java’s UMP 2019. The salary determination for most of
Bogor’s culinary SMEs is still not referring to UMP. Moreover out of 24 SMEs, only
16 or 33.33 % that fulfilled the West Java UMP in 2019 (fig. 1).
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
599

Fig. 1. Comparison of the average salary of SMEs based on culinary between Bogor city and
West Java Province.
According to Milkovich (2001) in addition to the minimum of wage which is
external environment from the basis of compensation, interval environment consisting
of organizational policies and organizational ability to pay salaries for the employee. It
also affects the company for determining the employee compensation. Both external
and internal environment used as the basis in the determination of employee
compensation. The company must be able to guarantee the justice of compensation.
The injustice system can lead the employee’s dissatisfaction. According to Rivai one
of the causes of employee dissatisfaction with their job is salaries. Appropriate salary
and fair salary will make employee feel appreciate. Job satisfaction will lead to a
pleasant feeling of work, increasing productivity and employee performance.
Therefore, the company’s compensation system must be well constructed and fair in
order to create employee satisfaction so it can impact in increasing company
performance [4].
According to Mobley, one of the consequence from the unformed compensation
system is emergence of intention which can impact the company’s turnover [5].A
turnover intention is the employee’s desire to quit from the organization which covers and
give them a monetary wage or income. The high turnover will create a negative impact
on the organization, creating instability and uncertainty over the labour conditions [6].
Kapoor explains that based on internal survey conducted by Hay Group Indonesia
get third ranks with the highest turnover of 25.8 % in 2013-2014 [5]. The solutions to
overcome the employee turnover problem is using employee retention (employee
turnover). Retention refers to the definition of restraining, sustaining, resuming, and
preventing from the employee’s quit [7]. Employee’s retention can be seen as a way or
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company’s strategy to be able to restrain its employees. Employee’s retention is an
important issues especially where the position of SMEs still in development process.
The high turnover rate in SMEs will give a bad impact. It will make burden for SMEs.
The condition of employee payroll which is still under the standard of Bogor’s
UMK especially in UMK based on culinary such as restaurant and cafes will have
further impact in employee’s problem. Therefore SMEs needs appropriate
compensation system so it can be continue to develop.
This research was conducted by analyzing the compensation system SMEs culinary
in Bogor. The purpose of the research are (1) to compose the job grading and job value
based on the effectiveness of compansable factors (2) to analyze and implement the
evaluation of payroll system SMEs culinary in Bogor.
2 Research Methods
Data processing and analysis metodhs used descriptive statistic analysis, compensable
factors analysis based Hay Metodh and Point System classification techniques to
determinde Job Grading and Job Value.
This research was conducted in 24 small and medium enterprises based on culinary
such as restaurant and cafes in Bogor. The time of research started from February to
September 2019. The data used in this research is the primary data and secondary data.
Primary data obtained from the survey of culinary UMK employee’s salary in Bogor.
In addition there are also job factor questionnaires used to determine key job factors.
The questionnaires used rank scales which is the scale of choice where the respondent
asked to rank the others relativity [8]. In addition, it also used unstructured interview
techniques to find out compensable factors. Secondary data of the research is a general
overview of SMEs based culinary in Bogor, books of literature, and journals.
The sampling methods used in this research were non probability sampling with
purposive sampling techniques. The purposive sampling technique is a technique with
certain considerations or criteria [9]. The technique is used to determine the expert in
rating compensable factors. The experts are chosen from the owner of SME, store
manager and academician majoring in human resources management. In addition, it
also used judgement sampling to determine the experts who made be the respondent for
this research.
Processing methods and data analysis using descriptive statistical analysis, analysis
of compensable factors based on Hay methods and point system techniques
classification to determine Job Grading and Job Value.
Compensable Factors
Job evaluation is the process of determining the relative value of a job in relation of
other jobs [10]. Through job evaluation, salary and compensation determination can be
done more fairly in accordance to the competencies expectation in the work [11]. One
of the basics can be used to set the value of a job through compensable factors. The
compansable factors are the basis for establishing the value of a position consisting of
characteristic in work. It is valuable for the organization and helping to achieve
organizational strategy and purpose. Each factors has its own degree of importance and
points according to work or position. These factors are general and universal and
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
601

contain the main characteristics or various types of work [12].
Compensable factor is used as the basis for assigning a position value. Those factors
are rewarded by the company and the amount of rewards directly related to the degree
of importance different factors in job or position. Essentially, up to certain degree of
compensable factor is valid and exist at any occupation or job title. These factors
should be common to various type of work. There are several methods can be used to
make compensable factors such as Hay system, Watson Wyatt, Mercer and others.
Compensable Factors based on Hay Methods
Hay system is a method of evaluation of work achievement which is widely used in
North America and Europe. The values in Hay system is aimed the management
knowing the most important factor in enchancing the performance of the position that
will further become a reference to the job raising research using the Hay System. Hay
system has three criteria and each has a sub criterion. Three criteria in the Hay system
are:
1. Know-How Factor. The know-how factors related to the skills and experience
reflect the responsibility and ability to make decisions appropriately so offering
the best solutions to the problems faced in the work [13]. Skenes and Kleiner
explains that Hay Group identifies three elements in the factors. There are : a)
The practical procedures or special techniques required for the work; b)
Managerial Skills related to the integration and coordination of various functions
or assignments are considered more complex than work has specific function
and; c) Human relations skills that measure the works should be interact with
others. Jobs involving interpersonal interaction has higher values than jobs do
not have these requirements [14].
2. Problem-Solving. Problem solving reflects the intensity of management thinking
is dealing and solving specific problems, sharpness and timeliness of thinking
when handle the problems and levels of effectiveness in solving the difficulties
may be encountered. The problem solving factors consist of two dimensions,
there are: a) Number, size, level to think and make decisions in a job
independently; b) The ability of initiatives and creativity that reflects mental
activity when utilize the amount of act freedom [13]
3. Accountability. The accountability factors is related to the consequences or
effects resulting from the decisions and actions have been taken [13]. The
dimensions factors includes: a) Degrees of freedom to make decision; b) The
strength of resulting impacts may refers to the scale of production, services,
sales, or budget related to a particular job; c) The affected area, can be primary
impact, shared impact, contributory impact or remote impact.
Descriptive Statistics
Descriptive statistics are statistics used to analyze data by describing the data has been
collected without the intention of making generally valid conclusion [9]
Point System Method
In a point system the assessor allocates the numeric value for specific job factors and
the amount of value will provide quantitative assessment of the relative value at the
work [10]. The steps of point system methods are :
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1. Choose a group of jobs. Some positions or job title level occupation divided into the
cluster as job grade. The average restaurants and café in Bogor has several levels of
positions.
2. Identifying compensable factors. The methods used in the determination of
compansable factors is Hay system. This method divides the compensation factors
into three parts are know how, problem solving, and accountability.
3. Determining the factors values. The level of factors is determined using expert’s
opinions. The method used in determining the values factors. This research used the
Eckenrode method. The methods used to determine the degree of importance of
each criterion [15]. The values are considered important because it will affect the
final total value. The method is done by converting the order of values for example
change the first order with the highest values and fifth order with the lowest order.
The steps in the Eckenrode of calculation methods are:
a. Determining the work factors
b. Determining the values of work factors by giving the score for the answer.
First placed will be multiplied by the value obtained by reducing factors and
sequence.
c. The previous values by expert multiplied by the value of the allocation so the
values has obtained.
d. Determining the minimum points, maximum points, and the interval
e. Set the values of job
f. The point is obtained by the division between the total incentive and the total
points.
4. Determining Factor Point Value. This stage is to determine minimum value,
maximum and interval. The minimum value is obtained by multiplying the points
of percentage by 100 to get decimal value. The maximum value of each factors is
obtained by multiplying the values to the total point. Intervals are obtained with the
formula :
=
      
  
(1)
5. Validate point system. After the assessment has determined, the next step is to count
for each cluster . The total values is job point from each position cluster in the work.
6. Set up the price for each job. After converting the results of the job evaluation
questionnaire into working point value for each level of the previously acquired
factors, the price of each job is determined by the salary mid point.
7. Pay Ranges. The pay ranges is detrmined by finding the highest salary and basic
salary of a job
8. Pay Grades. Jobs are classified to simplify the pricing of work by:
a. Determine the group interval with the formula:
          
  
(2)
b. Determine the weight of the lower point, midpoint and upper point of each
group. The midpoint of each group is obtained by using the formula:
  

(3)
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
603

9. Adjusment. Adjusment process of the point system will produce 3 actual salary
conditions, which are as follows [10]:
a. Under Paid is an actual salary condition lower than the basic salary
b. In Paid is an actual salary condition between the basic salary and the highest salary.
c. Over Paid is an actual salary condition received exceeding the highest salary.
3 Result
Overview of Salary Distribution of SMEs based Culinary in Bogor
Based on a research survey of 24 culinary SMEs in Bogor City that were the object of
research, a total of 565 respondents were all respondents. The average of the 24
restaurants and cafes studied had a total workforce of 34 people and all of them were
classified as medium-scale businesses based on the number of workers referring to
Central Bureau of Statistic. Overall, the research objects identified 13 critical positions
in restaurants and cafes based on the main functions that need to exist in a culinary-
based business are as follows in Table 2 along with the average and minimum and
maximum salary comparison of 24 SMEs as follows.
Table 2. Salary survey result based on 24 Cullinary SME’s for 13 Critical positions.
No Job Title
Total
Person
Average Salary
Minimum
Salary
Maximum
Salary
1
General Manager/
Restaurant Manage
r
35
IDR
5,108,889
IDR
2,000,000
IDR
12,000,000
2 Head of Chef 21
IDR
4,657,929
IDR
1,200,000
IDR
13,000,000
3
Finance &
Accountin
g
Staff 15
IDR
3,502,029
IDR
2,000,000
IDR
6,100,000
4 Lo
g
istic Staff 33
IDR
3,217,738
IDR
720,000
IDR
6,883,418
5
Captain / Head of
Waite
r
19
IDR
3,052,117
IDR
1,100,000
IDR
4,902,500
6 Marketin
g
& IT Staff 12
IDR
2,461,667
IDR
840,000
IDR
4,700,000
7 Admin 5
IDR
2,367,420
IDR
2,100,000
IDR
3,437,100
8 Cookin
g
staff 149
IDR
2,337,829
IDR
690,000
IDR
6,605,612
9 Barista 36
IDR
2,254,575
IDR
750,000
IDR
4,500,000
10 Dish Washe
r
16
IDR
2,064,413
IDR
1,300,000
IDR
2,800,000
11 Helper 96
IDR
1,897,010
IDR
900,000
IDR
3,500,000
12 Cashie
r
19
IDR
1,837,158
IDR
750,000
IDR
3,201,800
13 Waite
r
109
IDR
1,531,431
IDR
420,000
IDR
3,500,000
Total Employees 565
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According to Table 3, the highest managerial position of restaurants and cafes in
Bogor is filled by general manager or restaurant manager with an average salary of IDR
5,108,889. Meanwhile the positions of Finance & Accounting Staff, Logistics Staff,
Captain / Head of Waiter, Marketing & IT Staff, Admin, Cooking staff, Barista, Dish
Washer, Helper, Cashier and Waiter are on average still below the UMK of Bogor City.
The lowest minimum salary is in the Waiter of IDR 420,000 and the highest maximum
is in the Head of Cheff of IDR 13,000,000, this is because this position is considered a
key position to maintain customer loyalty.
Culinary Compensable Factors Results with Hay Method for Culinary-Based SMEs
The Hay System Method divides factors based on know-how, problem solving, and
accountability for 24 culinary-based SMEs resulting in 10 factors giving compensation
to culinary-based SMEs. In this study, several factors were determined and the level of
following factors are: [11], [14], [16]–[18]
1. Formal education factors. This factor is used to assess the minimum level of
education required to perform certain functions or tasks in a position.
2. Experience Factors. This factor is used to assess the minimum level of work
experience to be had to fill the requirements of a position.
3. Managerial Skill Factors. This factor is used to measure jobs that have a variety of
functions or tasks are thought more complex than work that has very specific
functions. consequently, higher complexity and stronger managerial skills are
needed to be able to complete the tasks assigned to workers.
4. Human Relation Skill Factors. Human relations skills are used to measure the
employee interact with others. The work involving broader interpersonal
interactions is asses to higher level than those who do not have these requirements.
5. Creativity Factors. This sub-factor is used to measure the level of innovation or
artistic talent needed for the implementation of job duties.
6. Physical Business Factors. This factor is used to assess physical effort, level of
difficulty and pressure as well as the frequency (percentage of time) of work
assignments.
7. Subordinate Employee Responsibilities Factors. This factor is to measure the
number of people who are under surveillance and the level of complexity of the
supervision conducted in accordance with the position.
8. Risk of Job Factors. Factors used to measure the scale of losses that incurred as a
result of fault of the position holders.
9. Asset Responsibility Factors. This factor measures job responsibility of worker for
financial assets e.g cash, vouchers, checks, debit and credit, invoice payments,
budget, income, income and physical assets, including office equipment and others,
tools and instruments; vehicles, factories and machinery; place, equipment and
supplies; personal belongings of clients or others; goods, production, stock and
inventory.
10. Decision Making Factors. The Factors used to assess how far a person or workers
is involved in solving problems
The next step is weighting compensable factors using the eckenrode system method
with the results in Table 3.
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
605

Table 3. Eckenrode System Table for SMEs based on Cullinary at Bogor City.
Subfactors Weight
Level
Interval
1 2 3 4 5
Fromal Education 0.1870 19 61 103 145 187 42
Work Experience 0.0949 9 31 52 74 95 21
Managerial Skill 0.0862 9 28 47 67 86 19
Human Relations Skills 0.1430 14 79 143
64
Creativity 0.0828 8 46 83
37
Physical Business 0.0741 7 30 52 74
22
Subordinate Employee
Responsibilities
0.0803 8 26 44 62 80 18
Risk of Job 0.0783 8 31 55 78
23
Asset Responsibility 0.0934 9 37 65 93
28
Decision Making 0.0811 8 45 81
36
Source: Data Processed, 2018
Based on the results of the point system in Table 3, it is known that the biggest value
factor is the formal education factor which is 18.7% and the factor with the smallest
weight is the thinking challenge factor which is 7.41%. This shows that formal
education is the main aspect seen in the recruitment of culinary-based SME employees
in Bogor City.
Design Job Grading and Job Value Through Point System Method
Point system is used in this study to provide a quantitative assessment of the relative
value of a job. Values given through the point system will then be used to assess and
analyze job values and job grading. Job value calculation results are in Table 4.
Table 4. Job Value on 13 Critical Positions of Culinary-based SMEs.
No. Job Title Job Value
Given
Grade Given
Min Max
1
General Manager/
Restaurant Mana
g
er
782 691 782 V
2 Head of Chef 674 600 690 IV
3 Finance & Accountin
g
Staff 599
508 599 III
4 Marketin
g
& IT Staff 599
5 Lo
g
istic Staff 588
6 Captain / Head of Waiter 550
7 Barista 497
417 507 III
8 Cooking staff 497
9 Helper 429
10 Admin 368
324 416 I
11 Cashier 355
12 Waiter 368
13 Dish Washer 324
Source: Data Processed, 2018
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Based on the calculation of the job value in Table 4, the General Manager or
Restaurant Manager position of has the highest job value. This is due to the skills,
abilities, and capacity required for the manager's position to be highly valued. In Table
4 it can also be noted that the dish washer position has the lowest value. The skills,
abilities, and capacity needed for this position are classified as low.
The arrangement of the departement or job grading is obtained based on the given
method by determining the number of grade or the position desire. Job grade
preparation is done to see whether the payroll system analyzed will be suitable when
divided into several job grade. according to Table 4, it can be seen that 5 job grades
were formed with the highest point limit of 782 and the lowest point limit of 324 with
an interval for each grade is 91.53. The results of this classification will be the basis for
conducting the payroll structure with an overlapping system.
The Result of the Analysis Non Classification of Salary Mapping
Salary mapping was conducted to determine the initial conditions of the payroll
conditions that occurred in the 24 culinary-based SMEs, from thirteen critical positions
the dish washer position was overpaid or over the payroll average of the minimum and
maximum ranges that had been obtained as follows in Table 5.
Table 5. The results of the non-classification based Point System.
Job Title
Job
Points
(X)
Actual
Monthly
Salar
y
(Y)
Mid Point
Salary y=
7056,5X-807712
Minimum
Salary
(MP*0.65)
Maximum
Salary
(MP*1.35)
Result
General Manager/
Restaurant Manage
r
782
IDR
5,108,889
IDR
4,710,650
IDR
3,061,923
IDR
6,359,378
IP
Head of Chef
674
IDR
4,657,929
IDR
3,946,353
IDR
2,565,129
IDR
5,327,576
IP
Finance &
Accounting Staff
599
IDR
3,502,029
IDR
3,416,690
IDR
2,220,848
IDR
4,612,531
IP
Marketing & IT
Staff
599
IDR
2,461,667
IDR
3,416,690
IDR
2,220,848
IDR
4,612,531
IP
Logistic Staff
588
IDR
3,217,738
IDR
3,338,732
IDR
2,170,176
IDR
4,507,288
IP
Captain / Head of
Waite
r
550
IDR
3,052,117
IDR
3,076,634
IDR
1,999,812
IDR
4,153,455
IP
Barista
497
IDR
2,254,575
IDR
2,698,808
IDR
1,754,225
IDR
3,643,391
IP
Cookin
g
staff
497
IDR
2,337,829
IDR
2,698,808
IDR
1,754,225
IDR
3,643,391
IP
Hel
p
er
429
IDR
1,897,010
IDR
2,221,879
IDR
1,444,221
IDR
2,999,536
IP
Admin
368
IDR
2,367,420
IDR
1,791,589
IDR
1,164,533
IDR
2,418,645
IP
Cashie
r
355
IDR
1,837,158
IDR
1,700,728
IDR
1,105,473
IDR
2,295,983
IP
Waite
r
368
IDR
1,531,431
IDR
1,791,589
IDR
1,164,533
IDR
2,418,645
IP
Dish Washe
r
324
IDR
2,064,413
IDR
1,481,103
IDR
962,717
IDR
1,999,489
OP
Source: Survey SME Cullinary Based in Bogor City, Data Processed, 2019
Note: OP = Over Paid, IP = In Paid, UP = Underpaid
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
607

Based on the results of salary mapping in Table 5, it can be seen that the salary
structure in culinary-based SMEs is still not ideal. It requires improvement through the
method of point based system as follows in Table 6.
Table 6. Compensation System Based on point classification system for Culinary SMEs in Bogor
City.
Job Title Cluster
Job Point
(Grading)
Job
Points
(X)
Actual
Monthly
Salary
(Y)
Mid Point
Salary y=
7056,5X-
807712
Min Base
Pay
(MP*0.65)
Max Base
Pay
(MP*1.35)
Results
General
Manager/
Restaurant
Mana
g
e
r
5 736 782
IDR
5,108,889
IDR
4,387,566
IDR
2,851,918
IDR
5,923,214
IP
Head of
Chef
4 645 674
IDR
4,657,929
IDR
3,741,755
IDR
2,432,141
IDR
5,051,369
IP
Finance &
Accounting
Staff
3 553 599
IDR
3,502,029
IDR
3,095,944
IDR
2,012,363
IDR
4,179,524
IP
Marketing
& IT Staff
3 553 599
IDR
2,461,667
IDR
3,095,944
IDR
2,012,363
IDR
4,179,524
IP
Logistic
Staff
3 553 588
IDR
3,217,738
IDR
3,095,944
IDR
2,012,363
IDR
4,179,524
IP
Captain /
Head of
Waite
r
3 553 550
IDR
3,052,117
IDR
3,095,944
IDR
2,012,363
IDR
4,179,524
IP
Barista 2 462 497
IDR
2,254,575
IDR
2,450,133
IDR
1,592,586
IDR
3,307,679
IP
Cooking
staff
2 462 497
IDR
2,337,829
IDR
2,450,133
IDR
1,592,586
IDR
3,307,679
IP
Helper 2 462 429
IDR
1,897,010
IDR
2,450,133
IDR
1,592,586
IDR
3,307,679
IP
Admin 1 370 368
IDR
2,367,420
IDR
1,804,322
IDR
1,172,809
IDR
2,435,835
IP
Cashier 1 370 355
IDR
1,837,158
IDR
1,804,322
IDR
1,172,809
IDR
2,435,835
IP
Waiter 1 370 368
IDR
1,531,431
IDR
1,804,322
IDR
1,172,809
IDR
2,435,835
IP
Dish
Washe
r
1 370 324
IDR
2,064,413
IDR
1,804,322
IDR
1,172,809
IDR
2,435,835
IP
Source: Survey SME Cullinary Based in Bogor City, Data Processed, 2019
Note: OP = Over Paid, IP = In Paid, UP = Underpaid
Based on the results of salary mapping with a point-based classification and
overlapping produced five major job cluster become as follows: Manager, Kitchen
head, Assistant Manager, Kitchen Staff and Restaurant Area Staff, these five job
families are selected based on the main occupational categories that need to exist In a
culinary business (Fig. 2).
According to Figure 2, the salary structure in Bogor Culinary SMEs in is already
said to be ideal, it can be seen that the minimum and maximum points in each grade are
appropriate. The complete salary structure overlapping is formed ideal.
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608

Fig. 2. The Ideal Compensation System Based on Point Classification for Bogor Culinary SMEs.
The result of the Regression show that Y = 7056.5 X-807712 where Y is the salary
and X is the job point / value, which means the higher the point value of the
compensable factors produced by the employee, the higher income concerned. Job
Value-based compensation system that was designed to meet above the West Java UMP
in 2019, although it has not been able to meet the minimum standards of the City of
Bogor in 2019, this is done in stages, because the SMEs in this study are still in the
business age below ten years, even 60 percent under five years, so it is still a stage of
growth and development that requires adjustments to be able to compete in the
provision of compensation and maintain the best talent. This is also realized by SME
owners, that the ideal compensation is not only to attract the best talent but also to retain
the best employees they have. Therefore, it is also important that besides fulfilling the
principle of pay for person and position, it is also necessary to complete with pay for
performance, so as to make employees in SMEs more enthusiastic and feel fair in giving
rewards and maintain the best employee loyalty. In addition, employee retention
programs can be done in several ways, including building a positive work environment,
improving suitability, encouraging leaders to support and help employees cope with
conflicts [19].
4 Conclusion
Based on the results of the research gets:
1. Compensation system in culinary-based SMEs in the city of Bogor through ten
factors determining the compensation of formal education, work experience,
managerial skills, human relations skills, creativity, physical effort, subordinate
Compensation System Design and Analysis based on Job Values for Small and Medium Enterprise in Cullinary Cluster at Bogor City
609

responsibility, risk of job, asset responsibility and decision making, with
educational factors being the most dominant determine payroll standards.
2. The ideal compensation system for culinary SMEs in Bogor using a grading system
or five main job families, namely the position of Manager, Kitchen head, Assistant
Manager, Kitchen staff and Restaurant Area Staff with an income of IDR 1,804,322
up to IDR 5,923,214 and still not fully able to reach the Bogor City UMK standard.
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