Citation:

Aliya Salsabila, Yos Sunitiyoso. "The Decision-Making Process of Total Rewards Arrangement in Indonesia-Based Digital and Technology Company: Employers and Employees’ Perspective" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 745-752, 2023.

Abstract:

The COVID-19 pandemic of 2020 significantly affected the global workforce, leading to widespread disruptions and challenges across industries. Retaining employees became a major issue for organizations, linked to intangible job satisfaction factors like flexibility. The pandemic altered the perception of work-life balance, making it a crucial factor in the decision to stay or leave a job, competing with traditional considerations of pay and benefits. Despite the pandemic’s turmoil and The Great Resignation, compensation and benefits remained essential for retaining talent. Creating competitive packages became crucial for attracting and keeping top-tier employees. Understanding these packages’ strategic formation and identifying factors that attract talent became vital in this evolving landscape. This study used the Analytic Hierarchy Process (AHP), a decision-making tool, to delve into these complexities. AHP helped prioritize factors from both employer and employee perspectives. Interviews were done with several decision-makers responsible for rewards, compensation, and benefits aimed at understanding criteria like Short-Term Financial, Long-Term Financial, Flexibility, and Future Development. Testing the AHP model involved several employer’s representatives and employees, revealing a consensus on the importance of competitive salaries as part of the Short-Term Financial criterion. However, disparities emerged regarding Long-Term Financial considerations; employers viewed it as essential for business viability, while employees emphasized flexibility for work-life balance. These insights shed light on the equilibrium sought by Indonesian employers and employees post-pandemic. This research lays the groundwork for adjusting strategies and policies in the dynamic business world, serving as a foundational resource for those aiming to achieve this balance.

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Keywords:

Analytic Hierarchy Process (AHP), Compensation and Benefit, Multi-Criteria Decision Making (MCDM), Technology Company, Total Rewards.