ANALYSIS OF EMPLOYEE COMPENSATION AT PT. DWI HANDAL AUTOMATION INDONESIA

Abstract

This study aims to analyze the employee compensation system at PT Dwi Handal Otomasi Indonesia, an automation manufacturing company located in Cikarang, West Java. Compensation is one of the key elements in human resource management, as it directly influences employee motivation, job satisfaction, and performance. The research focuses on two main aspects of compensation: direct compensation (salaries, wages, incentives) and indirect compensation (allowances and facilities), as well as the issue of unequal distribution between field employees and office staff. The research method used is a qualitative approach, with data collected through observation, in-depth interviews, and documentation involving ten informants from various divisions. The findings indicate that although the company provides a relatively comprehensive form of compensation, perceptions of unfairness still exist among employees. This is mainly caused by a mismatch between workload and the compensation received, as well as a lack of transparency in company policies. Such perceptions negatively affect employee morale and loyalty. Therefore, this study recommends a thorough evaluation of the existing compensation system and improved internal communication to create a more equitable, transparent, and effective system capable of enhancing employee performance in a sustainable manner..