What Is Compensation Benchmarking?

Compensation adjustment means that after the company's compensation system is operated for a period of time, with the changes in the company's development strategy and human resources strategy, the current compensation system may not meet the needs of corporate development. The latest compensation strategy, while making adjustments to the compensation system. Compensation adjustment is an important means to maintain dynamic compensation balance and achieve organizational compensation goals, as well as the daily work of compensation management.

Salary adjustment

In the final analysis, salary adjustment is the redistribution of benefits in the process of corporate strategy adjustment, which is very important in the process of salary management, but it is just a job that many companies have overlooked. There are two main types of pay adjustments:

Compensation adjustments include

Original

1. Principles of fairness, fairness and competition

2.Simple and legal principles

3.

In the process of enterprise management, salary adjustment is a very common phenomenon, but if the salary adjustment is not correct, the effect will be counterproductive. The two key factors in salary adjustment are the post experience curve and market salary changes.

The experience curve means that as time goes on, a person's familiarity with a certain post and a certain job will inevitably increase, and his experience and his understanding of this job will become deeper and deeper. Help him improve his working methods, improve his work efficiency, and complete his job better and more reasonably. But this kind of experience does not always increase. Over time, the accumulation of experience will become slower and slower until it stops.

Generally speaking, the simpler and easier the work, the faster the experience will accumulate, and this experience will soon reach its peak and will not continue to increase. However, if the work itself is very difficult and requires a strong spirit of innovation, then the accumulation of such experience will be very slow and long-term. As long as this experience is increased, it will greatly promote the substantial improvement of employees' capabilities and work. Improved efficiency. The general principle of wage increase is: the higher the experience effect curve, the more wages need to be raised; the simple job the experience curve effect is not strong, the salary can be adjusted rarely.

Determining the experience curve of each job in the enterprise is mainly based on the results of job evaluation. Job evaluation (job evaluation) focuses on solving the issue of internal fairness of pay. It has two purposes: one is to compare the relative importance of various positions within the company to obtain a rank sequence; Job evaluation standards, eliminating differences in job difficulty due to different job names or actual job requirements and job content even if the job names are the same, making different positions comparable (the popular paypoint system is based on this ) To lay the foundation for ensuring the fairness of wages. It is the natural result of job analysis and is based on job descriptions.

Therefore, when doing job evaluation, we must pay attention to the development of the experience of employees in each post, draw the experience curve of the post, and refine it into different levels according to the strength of the experience curve effect. And weights to provide an accurate quantitative system for salary adjustment.

The specific function formula of the experience curve effect can be expressed as: experience salary = F (annual salary budget, job evaluation level, job experience demand years, weights, working years)