THE RELATIONSHIP

BETWEEN EMPLOYEES
BENEFIT TOWARDS JOB
SATISFACTION AMONG
TAXI DRIVERS
Anastasia Andrea/ 34411007
Liliana Stephanie/ 34411016
Kevin Kristanto/ 34411024
Sheulgi/ 344120

Introduction
Two important things that modern organizations are dealing with are
employees benefit and job satisfaction. Despite providing various types of
benefit, different employees are looking for different types of benefits. Thus,
the benefits they get will affect their satisfaction towards their jobs. If we
look at this issue in depth, actually we can see that one affect the other.
Employee benefits are all forms of consideration given by an enterprise in
exchange for service rendered by employees.
(http://www.mca.gov.in/Ministry/notification/pdf/AS_15.pdf)
Employee satisfaction is the terminology used to describe whether employees are
happy and contented and fulfilling their desires and needs at work.

(http://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.
htm)
It has 3 aspects which are government regulation he last few years, many
people become busier. They are demanded to mobile either during weekdays
or weekend. Sometimes, to support their needs to be mobile, they need a
comfortable public transportation. However, most of the time we are using
customers perspective whether the taxi companies are good or not. Taxi
drivers are holding an extremely crucial role in this transportation business
since they are the front liners who directly deal with the customers. In this
opportunity we are going to discuss about the job satisfaction that the taxi
drivers feel due to the benefits they get.

The goal of the report is trying to spot the relationship between employees
benefit towards job satisfaction among taxi drivers. We would like to evaluate
how taxi companies treat their workers especially the taxi drivers.
Furthermore, taxi drivers are the front-liners who directly serve the
customers. Hence, taxi drivers are the key point that need to be maintained
by considering and giving employees benefit to motivate and give
appreciation.
In order to approach this goal of the report, we use an interview method by
spreading

questionnaire

among

taxi

drivers

from

two

different

taxi

companies. The two taxi companies are Blue Bird and Silver. Blue Bird is one
of the biggest companies in taxi business. Blue bird is already in Jakarta, Bali,
Bandung,

Banten,

Lombok,

Manado and Palembang.

Semarang,

Surabaya,

Yogyakarta,

Medan,

It is well known to have a good quality

transportation and service that prioritize customers satisfaction. Blue Bird

has become the pioneering taxi company to implement the strict use of
taximeters and radio communications on air-conditioned vehicles.
Meanwhile, Silver is slightly different with Blue Bird. Silver is focused to serve
middle-low people by giving cheaper price and lower quality of service. Silver
is also having differences in applying restriction to the drivers. Sliver is
domestically for Surabaya people.
service

price

makes

society

in

The ability of silver to maintain the

Surabaya

often

uses

it

for

public

transportation.

Theoretical background
As the ones who hold the essential part of the business, it is important to
keep their satisfaction. There are 2 important things to be discussed which
are the employees benefit and job satisfaction. Employees benefit affect
the degree of satisfaction. The meaning of employees benefit is non-wage
compensation provided to employees in addition to their normal salaries. On

the one hand, the employees benefit can work as the motivator to work
harder. On the other hand, some other employees see that since they do not
get enough employees benefit they become dissatisfied with the company.

Method
We are using primary data so that the result will reflect accurately. A random
sample of 20 taxi drivers from two different companies is used firstly to
collect the primary data. The independent variables of this report are
commission, incentives, day off, health insurance, scholarship for children,
and career opportunity. Meanwhile, the depend variable is employees
satisfaction. For this case, the independent variables affect the dependent
variable that in the end give results

Results
After interviewing two different taxi companies, we have found several
findings. First of all, Blue Bird and Silver companies have different way to
provide employees benefits. Silver is more focusing on the employees
benefit whereas blue bird is focusing on the customers satisfaction.
Silver is not that strict in making regulations for the employees. The uniform
of taxi drivers is also not that tidy. They can use flip flop and open their
button of shirt. Silver is not that high in giving compensation but through the
interview, but most of the drivers are satisfied with silver. They said that its
because in silver, the regulations are not binding and the working hours are
relaxed. But in terms of welfare, the drivers said that it needs improvement
especially for the compensation, incentives, insurance, and scholarship.
Blue bird is well known among society that is really good in service. Its true.
But in the same time, that jargon has not provided justice for them. Some of
the cases where the customers lose their belonging, the drivers can be fired

easily because of that. Blue bird is too focusing the customers satisfaction
until also neglecting employees welfare through employees benefit. In blue
bird, they have strict rules that bind the employees. The drivers should wear
tidily. They should not yell to the customers even if the customers are the
wrong one. They should behave kindly. They cannot drop off the passenger
randomly. If they violate those regulations, they can be non activated as the
drivers. The company can give pressure to make the driver resigning by
himself. The loyalty of drivers to be still in blue bird is only affected by the
generosity of customers. They only depends on the passengers who usually
dont ask for the change.They are just satisfied with the reputation of blue
bird. But in terms of regulation and employees benefit, they are not satisfied
enough. It needs improvement in many aspects. They are working with blue
bird is just because they dont have other choices. The condition forces them
to work like that. There is no satisfaction from the employees to the
company.
Commission
In terms of salary, both of them do not provide based salary. They only give
commission

depends

on

employees

performance.

In

Silver,

below

Rp435,000.00 they will get 15% commission. However if they could exceed
the target, 80% commission can be gotten from the difference between what
they get and Rp435,000.00. Furthermore, if the drivers can drive sixteen
times per month, they will get rice as a bonus. For eighteen times of driving,
the drivers could get packet A and for twenty one times of driving could be
given packet B.
In blue Bird, The commission received by drivers is bigger. Its about 30%
commission from the total amount they paid up to the company. For less
than Rp350,000.00,

the taxi drivers

will get

30% commission. For

Rp351,000.00 Rp500,000.00, the commission is reaching 40%. In the

highest commission, they can get 50% if the amount they paid up to the

company is more than Rp500,000.00. There is also an additional bonus in the

amount of Rp235,000.00 per month for those who can get Rp8,000,000.000.
Medical Insurance
Both of taxi companies do not provide medical insurance which is like
Jamsostek for the taxi drivers. In Silver company, they do not provide
anything about medical insurance for the drivers and family. Silver only
provide policinic and doctor at the base place. Silver also does not help
paying for the cost of serious illness. Silver will only pay about Rp750,000.00
for those who are already dying and having no hope to breathe.
For blue bird, the medical insurance that they give is like by providing a clinic
and a doctor in the base place of taxi drivers. The doctor only can heal the
common diseases. r In

the policlinic, blue bird gives free-charge for the

doctor fee and medicine fee. In some cases; if the taxi driver gets a serious
illness and needs to hospitalize, Blue bird will help paying for 60% out of the
total expenditure. But in the real case, blue bird did not really pay 60% out of
total expenditure. The medical insurance that blue bird uses is JP3K instead
of Jamsostek. The ones who get JP3K is the driver, wife, and maximum 3
children.
Scholarship for children
Silver does not give any scholarship for the children of taxi drivers. Whereas,
the blue bird still gives scholarship until university life even if in a form of
help for several aspects needed to enter school. There are also maximum
children than can be helped who are only 3 children.
Pay for time not worked
According to the results of interview, the taxi drivers of silver will get paid fot
time not worked if minimum they already drive 16 times per month. The
amount of money that they will get is Rp40,000.00. In blue birds working

regulation, there is no payment for time not worked. Its because the day off
of the drivers is decided by themselves. The company does not the one who
regulate the holiday. As long as they do not drive, they will get nothing. In
other words, the salary of taxi drivers in blue bird fully depends on their
performance each day.
Petrol allowance
The silver company, they give allowance for the cost of petrol. There is a
maximum 32 liter for 320 kilometers. In the other side, the cost of petrol is
certified by the drivers in blue bird. Blue bird does not give any allowances
for petrol.
Break time
Since in the silver, the operation hour for driving the car is about 24 hours.
The drivers are the one who arrange their own break time. They can have
break time whenever as long as after 24 hours, they should pay up to the
company in order to get the compensation. By having 24 operational hours,
the car can be brought home too. The schedule of the break time in the
silver is quite flexible. The similar condition also happens in blue bird. In blue
bird the ones who arrange the break time is the drive. But the difference is
the operational hours. The operational hours is up to 12.00 AM. It means,
they can not bring the car to home.
Career opportunity
One of the benefits that employees usually look for is career opportunity. The
career opportunity is not really significance in taxi business. It is proven from
20 interviewees that we has interviewed, most of them have worked for 10
years. But the career opportunity they get is not sufficient. Since they
entered these companies until now, the career is still same which is as ataxi
driver. In the silver, the taxi drivers do not have career opportunity. They only
have the opportunity to do installments in order to have the car. The

installments are for about 1 year. In other way around, Blue bird actually
gives career opportunity but the probability to have higher level of job is not
that big. It depends on some criteria that are really strict. The career
opportunity that blue bird tries to give is becoming the head of grouping and
the elder member. In blue bird, the taxi drivers do not have the opportunity
to have the car.
From overall interview, our group can conclude that in terms of employees
benefits that affect the employee satisfaction, Silver is better than blue bird.
Silver still consider their employees. Blue bird is still lack of it. Blue bird is
only focusing on customers satisfaction and forgetting their employees. The
taxi companies should consider to give more employees benefit to give
appreciations. Moreover, the result of interview has brought into conclusion
that both companies are still not good enough in providing employees
benefit. The drivers are not satisfied yet with the companies. It needs
rearrangements in order to increase the welfare of the drivers.