Performance-Based Structural Compensation Model for Structural Officials in Private Universities (A Case Study of Universitas Kristen Indonesia Toraja)

INKUBIS: Jurnal Ekonomi dan Bisnis Volume 8, Issue 2, 551-561 e_ISSN: 2775-3913 https://inkubis.polteksci.ac.id/index.php/ink/index DOI: doi.org/10.59261/inkubis.v8i2.208 Performance-Based Structural Compensation Model for Structural Officials in Private Universities (A Case Study of Universitas Kristen Indonesia Toraja) Ade Lisa Matasik1* Oktavianus Pasoloran2 Universitas Kristen Indonesia Toraja, Indonesia Universitas Atmajaya Makassar, Indonesia *Corresponding author: Ade Lisa Matasik, Universitas Kristen Indonesia Toraja, Indonesia. 🖂 Article Info: Article history: Received: March 30, 2026 Revised: May 11, 2026 Accepted: May 12, 2026 Abstract Background: Remuneration systems in private universities often lack transparency and performance-based incentives, leading to perceived inequity among structural officials—those in formal academic and managerial leadership positions. At Universitas Kristen Indonesia Toraja (UKI Toraja), the existing compensation system is primarily determined by position classification and length of service, without systematically evaluating the actual complexity and responsibilities of each role. This administrative approach fails to reflect genuine Keywords: contributions, thereby undermining motivation, internal equity, and factor evaluation system; institutional competitiveness. performance-based remuneration; Objective: This study aims to develop a performance-based remuneration position evaluation; private model for structural officials in private universities through a case study universities at Universitas Kristen Indonesia Toraja. Methods: A qualitative case study was conducted at Universitas Kristen Indonesia Toraja through document analysis, semi-structured interviews, and a limited confirmatory questionnaire. Data were analyzed using thematic analysis following Corbin and Strauss, with triangulation across interview, documentary, and questionnaire data sources to enhance validity. Results: The findings indicate that the application of the Factor Evaluation System (FES) is relevant for objectively assessing positions based on responsibilities and work complexity rather than personal attributes. The adaptation of the nine FES dimensions results in a more holistic assessment of academic and managerial roles in private universities. The nine-level scoring system (1–9) improves fairness, transparency, and accuracy in job grading and strengthens the linkage between performance and compensation. Conclusion: The adaptive FES model constitutes a strategic instrument for merit-based human resource governance in private universities. It offers a replicable framework for institutions seeking to align structural compensation with performance, responsibility, and institutional values. To cite this article: Ade Lisa Matasik, Oktavianus Pasoloran. (2026). Performance-Based Structural Compensation Model for Structural Officials in Private Universities (A Case Study of Universitas Kristen Indonesia Toraja). INKUBIS: Jurnal Ekonomi dan Bisnis, 7 (2), 551-561. https://doi.org/10.59261/inkubis.v7i2.208 INTRODUCTION In human resource governance in higher education, the remuneration system ideally functions as a fair, transparent, and performance-based reward mechanism grounded in the tangible contributions of everyone toward achieving the institution’s goals (Huriyah & Chiang, 2025; Minasyan et al., 2017; Priharta et al., 2023). Such a system is not only oriented toward financial aspects but also serves as a strategic instrument to strengthen professionalism, increase organizational accountability, and foster a productive and results-oriented work culture. Within 551 | INKUBIS: Jurnal Ekonomi dan Bisnis Ade Lisa Matasik, Oktavianus Pasoloran Performance-Based Structural ... this ideal framework, each structural position is expected to have a value proportional to its responsibilities, task complexity, and impact on institutional sustainability, so that the remuneration provided truly reflects the value of the position and actual performance (Armstrong, 2024; Nguyen et al., 2023). However, in practice, many private universities in Indonesia have not fully implemented this principle. The current remuneration pattern still tends to be conventional, relying primarily on formal rank, length of service, or administrative position. This condition creates a gap between the burden of responsibility and the compensation received, thereby giving rise to potential internal inequity, low work motivation, and limited institutional competitiveness in attracting and retaining high-quality human resources. A similar situation is also evident at Universitas Kristen Indonesia Toraja (UKI Toraja), where the structural remuneration system remains oriented toward position and years of service without systematically considering the value of the position itself. As a result, the compensation mechanism does not fully reflect the actual contributions and responsibilities of each structural official and does not adequately support performance-based human resource management. The claim that FES is relevant for UKI Toraja is grounded in the following evidence: all 10 informants confirmed that the current compensation system fails to differentiate between positions with substantially different levels of complexity and responsibility; document analysis of UKI Toraja’s foundation regulations and human resource policies confirmed the absence of any formal position-evaluation instrument; the adapted nine-dimensional FES produced differentiated scores across position levels, with a standard deviation of 1.8 across the “Program Scope and Impact” dimension, thereby confirming meaningful discriminant power; and Fulmer (2023) provided empirical evidence that performance-aligned compensation systems are associated with higher organizational commitment and lower turnover in educational contexts. Several previous studies have highlighted similar problems related to remuneration systems in private universities. Previous research revealed that most private universities in Indonesia still implement remuneration systems based on rank and length of service rather than on performance or measurable position evaluation (Wahyudi et al., 2025; Wijaya, 2025). These systems generally focus on administrative and seniority aspects, and therefore do not fully reflect the actual contribution or complexity of positional responsibilities. Research conducted in state universities has shown that factor-point-based position evaluation systems can produce more measurable and equitable job classifications, while also serving as a solid basis for determining remuneration in accordance with internal equity (Prihatin, 2016). In detail, previous studies on remuneration in Indonesian higher education exhibit three critical limitations. First, Calvanese (1999) focused descriptively on documenting the prevalence of class-based systems without proposing a validated alternative model. Second, Prihatin (2016) dem (...truncated)