Midtest Presentation of Compensation Management Course by Sandro Yosua

1. SANDRO YOSUA/10208037

2. INTRODUCTION
LEGAL ASPECT IN COMPENSATION
MANAGEMENT
CASE STUDY
(PT. Bara Jaya Energi)
CONCLUSION

3. Compensation Management?
- JACK WELCH
“If you pick the right people and
give them the opportunity to
spread their wings - and put
compensation and rewards as a
carrier behind it - you almost don’t
have to manage them.”

4. Compensation Management
The practice of balancing
between the employer-
employee benefits in an
organized section.
- Sandro Yosua

5. LEGAL ASPECT
IMPACT TO COMPENSATION
CASE STUDY OF A COMPANY
REVIEW AND ANALYSIS
SOLUTION

6. “Surat Keputusan Gubernur Kalimantan
Timur nomor 561/K.437/2011 tentang
Penetapan Upah Minimum Sektor
Propinsi (UMSP) Sektor Pertambangan
tahun 2011”
East Kalimantan minimum wage: Rp. 1.360.000,-

7. Minimum wage is the minimum standard used by
employers to give benefits to employees in their
organization. Because the Cost of Descent Living in
every province differs, there is the term “Province’s
Minimum Wage”.
only valid for single employees with none to one
year of work experience
Based on Decent Living Cost

8. DECENT LIVING

9. PT. Bara Jaya Energi

10. province minimum
wage regulation
Rp. 1.360.000,-.
Bara Jaya basic
wage
Rp. 1.220.000,++.

11. Bara Jaya Energi uses a traditional pay
structure that is jobs-based structure
Job based pay structure pays their
employees based on experience and the
type of position

13. Compensable
Factors
Degree
Weight Total
1 2 3 4 5
Skill: (10%)
Mental 5% 15
Experience 5% 10
Effort: (40%)
Physical 20% 80
Mental 20% 80
Responsibility:
(10%)
Effect of Error 5% 20
Inventiveness 5% 5
Working
Conditions:
(40%)
Enviroment 20% 100
Hazards 20% 100
Total 410

15. Compensable
Factors
Degree
Weight Total
1 2 3 4 5
Skill: (40%)
Mental 20% 60
Experience 20% 60
Effort: (30%)
Physical 15% 15
Mental 15% 45
Responsibility:
(20%)
Effect of Error 10% 20
Inventiveness 10% 10
Working
Conditions:
(10%)
Enviroment 5% 5
Hazards 5% 5
Total 220

16. Rp. 1.360.000
Rp. 2 – 4 million

17. Non-motivated employees
Because very near the minimum boundary,
it is likely to get a strike every year

18. Raising the province minimum wage for
the mining sector
mining companies will have no choice but to rise
their mine labors payment according to the new
regulations.
This action is taken to better value the mine labors
life threatening working conditions.

19. The province minimum wage of the mining
sector meets up the cost of decent living,
but the job value of a mine labor is higher
than the cost of the minimum wages. The
solution to this problem is to increase
wages to an appropriate value of a life
threatening job such as a mine labor.

20. THANK YOU