Corresponding Author: Rakhmat
Sigit Widodo
E-mail: [email protected]
INTRODUCTION
The beauty industry has experienced rapid growth,
increasing demand for beauty services. Apart from maintaining appearance,
another reason someone takes facial and body care is to follow the trend of
socialite life and busyness that makes a person not have time to do their care,
so they use skin care services to maintain facial and body appearance. Chairman
of the Association of Indonesian Cosmetics Companies and Associations (PPAK)
Solihin Sofian said until mid-2023, there were 1,080 companies engaged in the
beauty industry. If you look again, based on data from the Central Statistics
Agency (BPS), this number increased by 18.29% compared to the middle of 2022,
which amounted to 913 companies (Handoyo, 2023).
However, behind the positive growth of the beauty
industry, there are challenges related to human resource management that need
to be addressed, especially the search for a suitable compensation model to
improve employee performance in beauty clinics. Compensation is a common way to
implement reasonable compensation policies, which can meet all the needs of
employees' lives and improve employee performance (Yuliani & Siregar,
2023); (Habdullah et al.,
2020). Compensation is all income in the form of money,
direct or indirect goods provided by the company as a token of service for
contributions to the company (Nugraha &
Tjahjawati, 2017). Compensation is everything that employees receive as a sign of service (Nugroho et
al., 2022).
Providing compensation must
also fulfill the element of justice because, according to Ambar Teguh (2009:
267), the theory of justice (equity theory) must be created (Astuti,
2016). To get excellent and
expected compensation, employees will work better. The compensation indicators
include wages and salaries, incentives, allowances and facilities (Yusup et
al., 2023). Compensation in salaries,
bonuses, and specific awards has improved employee performance (Prasetyo,
2018).
Performance is the actual
behavior that each person displays as a work achievement produced by employees
in their role in the company (Yunarifah
& Kustiani, 2012). Compensation that is up to
the standards desired by employees will improve employee performance and
loyalty; this is one of the keys to keeping employee turnover rates from being
too high (Budiyanto,
2022). The company will prioritize
maintaining employees with good performance so that the company's performance
is not disrupted by the transition process related to the transfer of knowledge
to employees.
The compensation most desired by employees is the
provision of bonuses. Each beauty clinic has different policies for giving
bonuses. Some provide bonuses of the same amount for each employee, and some
provide bonuses based on each employee's performance. Some clinics even apply
performance-based bonuses by focusing on upselling bonuses. The greater the
product sales made by employees, the greater the bonus.
Based on the above background, this study aims to
determine and analyze the effect of compensation on the performance of beauty
clinic employees in Indonesia. This research benefits beauty clinic managers by
providing insight into the importance of a fair and effective compensation
system, increasing employee motivation and performance, and contributing to
academic knowledge about human resource management in the beauty industry.
METHOD
This study uses the
systematic literature review research method to examine six articles with
compensation and employee performance variables to investigate employees in
beauty clinics. Researchers want to know the effect of compensation variables
on employee performance variables in several beauty clinics in Indonesia.
Researchers searched for articles using Google Scholar media, research rabbit
and publish or perish. From the search results of about 100 articles, six
articles match the slices of compensation and employee performance variables,
with the object of research being employees in beauty clinics.
RESULTS AND DISCUSSION
The following are
the results of article searches found by researchers:
Table 1. Previous
Related Articles
|
Article Identity
|
Variables Used
|
Object of Research
|
Research Model/Performance Indicators
|
Research Results
|
|
Nur Irma
Yuliani, Onan Marakali Siregar (2023), Analysis of Leadership Style and
Compensation in Improving Employee Performance of The Clinic Beautylosophy
Medan, TRANSECONOMICS: Accounting, Business and Finance, Volume 3 No. 1
(Yuliani & Siregar, 2023).
|
Leadership Style, Compensation and Employee Performance
|
Employees
of The Clinic Beautylosophy Medan
|
Descriptive and qualitative / Compensation Indicators: Wages and
salaries, incentives, allowances and facilities.
�Employee Performance
Indicators: Work Quality, Work Quantity, Timeliness, Effectiveness,
Independence
|
At The
Clinic Beautylosophy Medan, the participative leadership style model is
applied. When employees experience problems that interfere with improving
performance, the leader immediately provides personal encouragement, the
leader has met the leadership standards, is friendly with subordinates, can
nurture subordinates, often coordinates with subordinates, is responsible for
his actions, and if there are subordinates having problems, participate in
solving the problem. Providing compensation at The Clinic Beautylosophy Medan
in the form of direct compensation, namely salary and indirect compensation
in the form of performance bonuses, purchasing clothes for employees, and
free facial treatments for employees, with compensation at The Clinic
Beautylosophy Medan is what employees want, with various types of direct and
indirect compensation, which can improve employee performance at The Clinic
Beautylosophy Medan.
|
|
Tubel
Agusven, Satriadi, Dila Fitriani, Fhira Desvika, Firly Adistia (2023),
Employee Quality And Productivity Improvement Strategy At Natasha Skincare
Tanjungpinang, UPMI Proceeding Series 1st UPMI International Conference
Multidisciplinary Science, Vol 1 No 01: Ed.01
(Fitriani, 2023)
|
Employee
Quality, Productivity Improvement
|
An employee
of Natasha Skincare Tanjung Pinang
|
Descriptive
Qualitative / Employee Quality: training, rewarding, and evaluating employee
performance.
|
Performance
appraisals assume that employees understand their work standards and provide
the necessary feedback, development, and incentives to assist employees in
eliminating poor performance or continuing good performance. They are a
formal system used to evaluate the performance of employees based on
predetermined work standards. Performance appraisals encourage the creation
of a healthy reciprocal relationship between superiors and subordinates.
The
upselling reward incentive that Natasha Skincare does is a reward in the form
of a bonus to employees who successfully sell products exceeding the sales
target. Contract extensions are also made to retain the company's best
employees and facilitate the achievement of the goals set by Natasha
Skincare. In addition, the reward will also increase job satisfaction for
employees. This will also have a good impact on
improving Natasha Skincare's performance.
|
|
Felicia Veronica (2017), The Effect of Bonuses and Work Climate on
Employee Productivity at Beauty Clinics, AGORA, Vol. 5, No. 1
(Veronica, 2017)
|
Employee Quality, Productivity Improvement
|
An employee
of PT L'vior Jaya Sentosa
|
Quantitative / Indicator: Bonus, Work Climate and Employee
Productivity
|
Based on the research results and discussion in the previous chapter,
several conclusions can be drawn to answer the problem formulation. Some of
these conclusions consist of:
1. The bonus variable has a negative and significant influence on
Employee Productivity. This shows that employee work productivity can be
formed through employee bonuses. Thus, the first hypothesis, which states,
"It is suspected that there is a positive influence of Bonus on Employee
Productivity at PT L'viors Jaya Santosa," is proven to be rejected.
2. The Work Climate variable has a positive but insignificant
influence on Employee Productivity. This shows that employee work
productivity can be formed through the work climate instilled in the company.
Thus, the second hypothesis, which states, "It is suspected that there
is a positive influence of Work Climate on Employee Productivity at PT
L'viors Jaya Santosa", is proven to be accepted.
3. Bonus and Work Climate variables have a significant positive
influence on Employee Productivity. Thus, the third hypothesis, which states,
"It is suspected that there is a positive influence of Bonus and Work
Climate on Employee Productivity at PT L'viors Jaya Santosa", is proven
to be accepted.
|
|
Selly Suci Marta Sari, Siti Khasanah, Syafiq Pasha, Vicky F Sanjaya
(2021), The Effect of Motivation, Reward and Punishment on Employee
Performance (Case Study of Puspita Beauty Clinic Bandar Lampung), Saburai
Journal of Management Science, VOL 7, NO 1.
(Syafiq, 2021)
|
Variables: Motivation, Reward, Punishment, Employee performance
|
Employee of Puspita Beauty Clinic Bandar Lampung
|
Quantitative descriptive / Motivation: physiological, security, social, appreciation and
self-actualization.
�Reward: Salary and bonus,
welfare, career development, psychological and social rewards.
�Punishment: minimizing
mistakes, severe Punishment for repeat offenders, explanation of Punishment,
and immediate Punishment if proven guilty.
Employee performance: work quality, work quantity, task execution,
responsibility for work.
|
Motivation, reward, and Punishment have a significant and positive
effect on employee performance; the more quality motivation, reward, and
Punishment have, the higher employee performance will be. It is similar to
the effect of Motivation, Reward, and Punishment, which positively and
significantly affect employee performance. In contrast, the motivation
provided by superiors has a highly positive and significant effect on
employee performance due to the price offered by service providers. Likewise
with Rewards where employees agree with the reward system provided by the
company and give a pretty good perception of the reward system they receive
to be more responsible in carrying out their work and Punishment also has a
very positive and significant effect on employee performance where the
application in the puspita clinic Bandar Lampung is good enough so that even
increasing it will not have an effect. The variables selected by the study
have a significant effect on employee performance. So, this research is on
the influence of reward and punishment motivation on employee performance.
Performance is the result of work in quality and quantity that can be
achieved by an employee in carrying out tasks according to the
responsibilities given. For employee performance to always be consistent,
factors that affect performance must be identified, including work
motivation, reward, and punishment/violation.
|
|
Ismani, Dasmadi, Heri Purwanto (2020), The Effect of Training and
Providing Incentives on Employee Performance at Ellena Skin Care Solo,
Ekobis: Journal of Management Science and Accounting, December 2020, Vol. 8,
No. 2
(Ismani, 2020).
|
Training, Incentives, Employee Performance
|
Employees at Ellena Skin Care Solo
|
Quantitative
|
Based on the discussion that the author has discussed in the chapters
above, the following conclusions can be drawn:
1. Job training has a significant effect on employee performance.
Ellena Skin Care Solo is a company engaged in body and facial care services,
so every employee who works at Ellena Skin Care Solo always gets job training
to provide skills for providing services to customers.
2. The results showed that incentives did not significantly affect
the performance of Ellena Skin Care Solo employees. This is because the
provision of incentives is a natural thing obtained by every employee who
performs well at work, but in general, incentives have a value that is not
large enough because incentives are only additional welfare to employees who
have a more significant portion of work, meaning that to get incentives,
employees are required to work with additional time or a more significant
portion of work, this is considered the provision of incentives only as a
substitute for fatigue pay.
|
|
Cindy Cinthia Devi, Ilya Farida (2019),
Morale of Maxine aesthetic medical personnel
Surabaya clinic on performance, Journal
of the Faculty of Economics, Dr. Soetomo University, Vol. 27 No. 2, Page
77-90
(Devi & Farida, 2019)
|
Morale,
performance
|
Maxine's
aesthetic medical personnel
clinic
Surabaya
|
Quantitative
descriptive
|
Based on the results of the research and discussion that the author
described earlier regarding the analysis of the enthusiasm for work by
medical personnel at PT Maxine Abdi Medika (Maxine Aesthetic Clinic)
Surabaya, It can be concluded that the factors inhibiting and supporting the
work enthusiasm of medical personnel are as follows:
1. Factors inhibiting the Morale of medical personnel
From the informants' responses, the factors inhibiting the Morale of
medical personnel are low compensation, lack of work discipline, and lack of
employee contribution. The low compensation factor is because the
compensation offered by the company is not competitive, so it has the
potential to be the reason for the workers to leave the company, which means
that for many people, compensation is necessary. A factor supporting morale
is the motivation that must be given to employees for their services to the company.
Low salary is one of the reasons for high turnover. The lack of work
discipline is due to the need for more implementation of reward and
punishment systems and company policies regarding operating days and hours.
While the factor of lack of leadership contribution is due to leaders who are
rarely in place, complaints and aspirations of medical personnel are less
considered by the leadership, so these factors can be concluded to be factors
inhibiting the work enthusiasm of medical personnel.
2. Factors Supporting Medical Workers' Morale
From the results of the informants' responses, the factors supporting
the work enthusiasm of medical personnel are a good work environment and
adequate performance support facilities. The excellent work environment is
due to a good working atmosphere and climate, including coworkers and the
workspace provided. Meanwhile, the factor of adequate performance support
facilities is because the leadership provides adequate and complete
facilities for medical personnel and other employees and patients. This spurs
the work enthusiasm of medical personnel so that they can further increase
their productivity.
|
The research in this Systematic Literature
Review took articles on different research objects with related variables:
compensation and employee performance in beauty clinics. Of the six articles analyzed regarding the relationship between
compensation and employee performance in beauty clinics, four states that
compensation positively affects employee performance. In comparison, two
articles conclude that compensation in the form of incentives hurts employee
performance.
This research uses many
quantitative methods by collecting data through interviews and surveys through
questionnaires. The data obtained from the survey was processed using SPSS and
PLS applications.
There are six research
objects, namely employees at The Clinic Beautylosophy Medan, Natasha Skincare
Tanjung Pinang employees, PT L'vior Jaya Sentosa employees, Puspita Beauty
Clinic Bandar Lampung employees, Ellena Skin Care Solo employees and Maxine Aesthetic
Clinic Surabaya medical personnel with the following conclusions:
Table 2. Object of the
Research Clinic
|
Object of Research
|
Effect of Compensation on Employee
Performance
|
|
Positive
|
Negative
|
|
Employees of The Clinic Beautylosophy Medan
|
V
|
-
|
|
An employee of Natasha Skincare Tanjung Pinang
|
V
|
-
|
|
An employee of PT L'vior Jaya Sentosa
|
-
|
V
|
|
Employee of Puspita Beauty Clinic Bandar Lampung
|
V
|
-
|
|
Employees at Ellena Skin Care Solo
|
-
|
V
|
|
Medical
personnel maxine aesthetic clinic Surabaya
|
V
|
-
|
Source: Resume of Journal Research Results in
2024
The difference
in research results is likely due to
differences in the compensation received by the object of research with one
another. At the PT L'vior Jaya Sentosa and Ellena Skin Care Solo clinics, the form
of compensation provided is most likely still not by the standards of other
clinics, so the effect of compensation is less felt on employee performance.
Several sources stated that compensation or incentives
that vary both financially and non-financially are very well implemented in the
company because incentives can provide stimulation or motivation for employees
to improve performance. (Kusuma et al., 2015). This will
undoubtedly cause a different response between employees at one beauty clinic
and another; the following are the results of the conclusion according to the
researcher:
Table 3. Research
Conclusion Results
|
Workplace
|
Form of Compensation
|
|
Financial
|
Non-Financial
|
|
As per
|
Not suitable
|
As per
|
Not suitable
|
|
The Clinic Beautylosophy Medan
|
V
|
-
|
|
|
|
Natasha Skincare Tanjung Pinang
|
V
|
-
|
|
|
|
PT. L'vior Jaya Sentosa
|
-
|
V
|
|
|
|
Puspita Beauty Clinic Bandar Lampung
|
V
|
-
|
|
|
|
Ellena Skin Care Solo
|
-
|
V
|
|
|
|
Maxine
Aesthetic Clinic Surabaya
|
V
|
-
|
|
|
Source: Resume of Journal Research Results in
2024
At the Ellena Skin Care
Solo clinic and PT L'vior Jaya Sentosa, employees consider the
form of compensation received to still not be by the workload provided. So, the
satisfaction of low employees cannot boost employee performance. Job satisfaction
includes, among others, work, salary, promotion, supervisors, coworkers,
communication, benefits, contingent rewards and implementation
procedures (Simanjuntak & Sitio, 2021). In contrast, in other
beauty clinics, employee satisfaction with the compensation obtained is
relatively high, so the compensation can positively impact employee
performance.
Based on the results and discussion above,
compensation generally positively affects employee performance at the Beauty
Clinic. Compensation in financial form will have a more compelling effect provided
that the nominal and minimum amount of compensation is by the standards
commonly accepted by employees at other Beauty Clinics.
The research journal
study does not detail the compensation given to employees in beauty clinics. In
every beauty clinic, the employee's employment contract usually includes a
percentage of compensation in the form of bonuses for every action taken by medical
staff employees and upselling bonuses for all employees who successfully
sell products from beauty clinics. In addition, at the end of each year, there
is usually a bonus for achieving the target based on the clinic's profit.
Improved employee
performance will usually occur if the bonus uses performance-based calculations
and is by the general standards that apply to clinics. As previously mentioned
in the theory of justice (equity theory), according to Robbins and Judge
(2008), employees will be loyal and improve their performance when they feel
fairness and job satisfaction, especially regarding the compensation provided
by the organization or company where they work (Widarti, 2017).
Therefore, it is
advisable for every beauty clinic to pay attention and consider methods of
providing compensation in performance-based and equitable bonuses for all
employees. The following is an overview of bonus formulations that can be
applied in beauty clinics:
1. Compensation (Bonus)
for Medical Personnel Actions
a. The more complex the
action, the greater the bonus percentage.
b. To respect the doctor's
profession more, the percentage of bonuses for doctors is higher than for
others while still paying attention to the bonus percentage gap.
c. Every medical action
has a Standard Operating Procedure related to action time; if the
medical action exceeds working hours, employees are required to receive an
additional bonus in the form of overtime pay.
2. Compensation (Bonus)
Product Marketing
a. The percentage received
by all employees is the same, whether doctors, nurses or administrators.
b. To encourage employees
to always offer products to consumers, there is an additional bonus for
employees who successfully sell products in large quantities.
3. Compensation (Bonus)
for Achieving Clinic Target
a. The percentage received
depends on the performance assessment carried out by the supervisor; employees
who perform well and poorly will receive bonuses in different percentages.
CONCLUSION
Based on the results and discussion above, compensation positively
influences employee performance at the Beauty Clinic. Financial compensation
has a more effective impact if the nominal and minimum amount of compensation
is by the standards received by employees at other beauty clinics. Providing
performance-based bonuses and by applicable standards will improve employee
performance. Robbins and Judge's equity theory supports that employees will be
loyal and improve their performance when they feel fairness and job
satisfaction related to compensation. This research has implications for developing
fair and performance-based compensation policies in beauty clinics, which can
increase employee motivation and productivity. In addition, the findings
encourage clinic management to implement a transparent compensation system that
aligns with industry standards, thereby increasing job satisfaction and
employee loyalty.
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