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, Semarang, Surabaya, Yogyakarta, Medan,
Manado and Palembang. 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. The ability of
silver to maintain the service price makes society in 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.