Budget Allocation of Employee Costs Based On Job Satisfaction Dimensions

Research activity
1. Budget Allocation of Employee Costs Based on Job Satisfaction Dimensions

The title emphasizes the factors of job satisfaction used in order to determine the employee costs in
Corporate Budget.
2. Abstract
The main objective of this study is to analyze the factors of job satisfaction aimed at determining the
allocation of employee costs in the Work Plan and Corporate Budget (RKAP). This research was
conducted at a company in the Cilegon Industrial Area, with 117 employees as respondents. This
study identifies six aspects of employee satisfaction, namely organization; work; aspects of self-
development; work environment; salary, benefits & welfare; company commitment and value; which
were analyzed with Factor Analysis using SPSS.
The conclusion on the results of this study is relates that the factors of employee satisfaction are a very
significant influence on employee performance. The allocation of employee costs for budgeting had
been carried out and evaluated.
3 Introduction.
Literature review
In organizational behavior, job satisfaction is one of the most widely studied variables in the field of
workplace psychology and has been associated with a variety of psychosocial problems in the
changing world of work, organizational factors ranging from leadership to job design. The level of
satisfaction a person feels about his job is based on the perception of individual satisfaction. Wexley
Sagala[ CITATION Ais16 \l 1033 ] state that several aspects of work that affect job satisfaction include
1) wages/salaries. 2) working conditions, 3) supervision, 4) coworkers, 5) work materials, 6) job
guarantees, and 7) opportunities to The job satisfaction variables consist of 1) Mentality Challenging,
2) Equitable rewards, 3) Supportive working, 4) Supportive colleagues. The fact. shows that people
want to work not only looking for and getting paid but by working people expect to get satisfaction.
In this study, we want to know the dimensions that affect employee satisfaction. Furthermore, related
to employee job satisfaction will be used as a basis in determining the amount of employee cost
budget per existing cost component.
RESEARCH METHODS
This research was conducted at a company in the Cilegon Industrial Estate. The research subjects were
117 employees. The instrument for measuring job satisfaction by identifying six aspects of employee
satisfaction, namely 1) organization, 2) working conditions, 3) self-development; 4) work
environment; 5) salary, benefits, and welfare; 6) company's commitment and value. The six aspects
are outlined in 25 dimensions of company standard statements that have been adjusted to employee
costs, namely best-workplace, treatment, pride, various considerations, types of tasks, challenging
work, work environment, facilities, creative opportunities, job qualifications, opportunities for
development, career opportunities, promotion, feedback , training, collaboration between employees
,problem-solving in work groups, organizational policies ,work environment, salary , benefits , wages
system , optimism , commitment , and corporate value . [ CITATION The20 \l 1033 ]
The level of employee satisfaction is measured based on a Likert Scale with a predetermined score,
namely: very satisfied with a score of 7, satisfied with a score of 6, somewhat satisfied with a score of
5, do not know with a score of 4, quite satisfied with a score of 3, dissatisfied with a score of 2, very
dissatisfied with a score of 1. Factor analysis is used to classify existing dimensions. Factor analysis is
a multivariate analysis carried out by forming factors using the SPSS application tool.
ANALYSIS AND DISCUSSION
Using historical data, provided by the company in 2017 budget employee costs was around $10.5
million, whereas budget allocation for employee costs in 2018 was around $11 million. Using the
previous costs and the results of the factor analysis group, the average proportion of employee
costs are the following:
The Proportion Of Budget Allocation For Employee Costs After Factor Analysis
Theoretically, the employee cost budget is allocated only to the increase in base assumption in
accordance with the results of employee performance appraisal. Practically the best employee
satisfaction represents benefits and workplace wellbeing, followed by salaries and allowances. So that
the results of the budget of employee satisfaction survey, the 2018 budget will be as follows:
Hypothetically assuming an increase in the budget of 5.57%, the difference in the budget allocation of
existing employee costs compared to using a basic factor analysis of the results of the company's
employee satisfaction survey can rationaloze employee costs by 3%. As above, now we have $10,7
millions in budget allocation drafting in 2018. This amount is smaller compared to budget allocations
drafting based on company’s assumptions. This might increased the budget profit of the company.
Conclusion
Based on factor analysis, there have been 6 aspects of job satisfaction under examination consisting of
25 dimensions which were reorganized into 3 dimensions, namely Contentedness, Well-Being, Salary.
Based on existing budget allocation for employee cost for 2018 is $11,085,957. Based on factor
analysis job satisfaction, amount budget allocation for employee cost for 2018 is $10,751,571.
Bibliography
Sagala, A. T. P., 2016. Proceeding of Management. Volume 3, p. 50.
The Mattingley Publishing Co., 2020. Budget Allocation of Employee Costs Based on Job Satisfaction
Dimensions. Volume 82, pp. 5087 - 5100.

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Research activity

1. Budget Allocation of Employee Costs Based on Job Satisfaction Dimensions

ANALYSIS AND DISCUSSION

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