This study aims to analyze the compensation system of XYZ SME, which operates in the automotive service sector in Bogor City, using the Adhered method. The Adhered method is a salary structure design approach in which salary ranges between grades are not allowed to overlap, meaning that the maximum value of a grade must be lower than the minimum value of the next higher grade. The research employed a descriptive approach by collecting data through interviews, observations, and documentation at XYZ SME involving 20 employees. The results indicate that the current compensation system is still not well structured, with a total monthly basic salary expenditure of IDR 18,964,800 and noticeable disparities among job positions. After restructuring the compensation system using the Adhered method, with a minimum benchmark of 20% above the Bogor Regency Minimum Wage (IDR 1,037,461) and grade spreads of Grade I = 20%, Grade II = 30%, and Grade III = 40%, the total monthly basic salary increased to IDR 26,815,329, representing a 41.4% increase. The new salary structure is considered more equitable, systematic, and compliant with both internal and external equity principles.
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