The Right Compensation System Balances Performance, Motivation and Willingness to Work on Daily and Contract Employees (Case Study in Manufacture Company PT. Wira Maju Bersama)

The manufacturing industry is faced with the challenge of designing an effective and fair compensation system for two distinct groups of employees: day and contract employees. The ideal compensation system should balance the performance, skills, motivation, and willingness to work of these two groups of employees. Compensation between employees is of course not the same value. This is because compensation is measured based on the level and performance of each employee. The problem that often arises is the openness of the company in providing compensation to each employee researchers also found that the existing compensation system is less effective in motivating employees and increasing the willingness to work on both groups of employees, namely daily and contract employees. The purpose of this study is to understand how the current compensation system affects the balance and know that compensation must be done in accordance with the hard work of employees. Compensation will also affect employee performance, meaning that appropriate compensation will make employees more motivated and willing to work harder, especially for daily and contract employees. The research method used is quantitative with data collection techniques through questionnaires given to 15 daily employees and 15 contract employees at PT Wira Maju Bersama. The results of this study showed that compensation and motivation have a positive and significant effect on the willingness to work and employee performance. Willingness to work also has a positive and significant effect on employee performance. Simultaneously compensation and motivation affect the willingness to work and variable compensation, motivation, and willingness to work affect employee performance.