What Does a Compensation Manager Do?

The compensation function refers to the manifestation and performance of the specific function of compensation in the application process, and is the core of compensation management, including compensation function, incentive function, adjustment function, benefit function and statistical supervision function.

Compensation function

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The compensation function is

(1) Compensation function.

The physical and mental consumption of employees in the labor process must be compensated to ensure the reproduction of labor, so that labor can continue, and society can continue to progress and develop. At the same time, in order to improve the quality of the labor force, employees must invest in education, and this cost must be compensated. Otherwise, no one is willing to invest in education, and it is difficult to continuously improve the quality of the labor force, which will affect social development. Under the market economy system, compensation for the above two aspects cannot be borne entirely by society, and a considerable part of it must be resolved by individuals. Employees are advised that through the acquisition of salaries and the exchange of salaries for material and cultural living materials, compensation for labor consumption and labor production expenses can be guaranteed. This compensation function of remuneration appears to be the same as what some people call the compensation guarantee function. There is no difference, but it is actually different. The compensation function is in accordance with the principle of distribution according to work, with more pay for more work (compensation) and less pay for work (compensation). The safeguard function is based on egalitarianism. No matter what you do, whether you do it or not, you must guarantee the basic life, and for some units, the banner of protecting life and improving life is blindly compared with the salary level, which provides an increase in salary. "Theory."

(2) Incentive function.

In a socialist society, the materials of material and cultural life are produced and circulated as commodities, the law of value still plays a regulating role, and currency is still a measure of value and a means of circulation. In order to obtain the necessary material and cultural living materials, employees can only use currency to purchase. The more money you pay, the more you need to buy, and the higher your standard of living; the lower your salary, the lower your standard of living. Obviously, in order to improve living standards, it is necessary to earn more through more labor. However, the amount of salary depends not only on the amount of labor provided, but also on the quality of the labor. The higher the quality of labor, the higher the salary; otherwise, the salary is lower. Therefore, in order to obtain more remuneration and improve living standards, employees should also continuously and comprehensively improve their own quality, so as to be able to provide more and higher quality labor, so as to obtain more pay. Through this incentive function of remuneration, employees can be motivated by material benefits to care about the improvement of their labor force quality and the increase of labor results, and ultimately the society's economy will continue to develop and improve, and the people's life will continue to improve.

(3) Regulation functions.

The adjustment function of salary is mainly reflected in guiding the rational flow of workers. The short-term determinant of labor supply and demand in the labor market is wages. The higher the salary, the larger the labor supply; the lower the salary, the smaller the labor supply. Therefore, the scientific and reasonable use of the economic parameter of salary can guide workers to move in a reasonable direction, so that they can move from industries (sectors) that are not urgently needed to industries (sectors) that are badly needed and from industries (sectors) that have little effect. Flow to industries (sectors) that play a large role, to achieve a reasonable allocation of labor. The adjustment function of salary is also reflected in the adjustment of salary relations and salary levels to guide workers to study and study the business (technical) knowledge that is urgently needed by economic organizations such as enterprises, from occupations with excessive talents (types of work) to occupations with scarce talents ( The type of work) has not only met the needs of all walks of life, but also balanced the structure of human resources. Finally, the determination of salary can also coordinate the interests of the state, the collective, and the individual.

(4) Benefit function.

Salary is the price of labor to economic organizations such as enterprises and the variable cost of investment. Therefore, the salary input of an enterprise cannot be regarded only as a currency input. It is a specific form of capital investment and is a monetary expression of the input of production factors (through labor). Therefore, salary input is also labor investment, and labor is the source of economic benefits. In addition, salary is income for workers and a source of subsistence. Under normal circumstances, the labor result created by a worker is always greater than his salary income, and the remainder is the economic benefits of salary. From the employer's perspective, remuneration has a beneficial function. It is also because of the beneficial function of pay that society can expand reproduction, the economy can continue to develop, and people's living standards can continue to improve.

(5) Statistics and supervision functions.

Remuneration is distributed according to the quantity and quality of labor. Therefore, the salary can reflect the amount of labor "labor contribution" provided by the workers to the society. Remuneration is used to purchase consumer materials at a certain price equivalent to the amount of labor expenditure. Therefore, salary can also reflect the consumption level of workers. Therefore, the amount of labor and consumption is directly linked through salary. Therefore, through the statistics and supervision of salary payment, it is actually the statistics and supervision of the consumption of live labor, and then the statistics and supervision of consumption. This will help the country to consider the relationship between the supply of consumer goods and wage growth, and the proportional relationship between wage growth, labor productivity growth, and GDP growth.

Remuneration management must give full play to the functions of remuneration, but it must highlight the key points and take care of it comprehensively. Regardless of the level of remuneration management organization (from the central to the lower-level units), it is necessary to fully understand and grasp the functions of remuneration. Maximize its leverage to achieve pay management goals.

(1) The salary standard per unit of time should be able to meet the basic living needs of labor reproduction; along with economic development, the proportion of development materials and enjoyment materials in basic living materials should gradually increase. This is because the improvement of social productivity has promoted the improvement of social living standards, and at the same time, the quality of labor force has also been required to improve. Therefore, the compensation for labor consumption can no longer stay at the original level. Under the market economy system, enterprises and other grass-roots units have the autonomy in salary distribution. However, in order to ensure the minimum compensation for labor consumption, the state should establish a minimum salary guarantee system, and enterprises must not lower the minimum salary stipulated by law when determining the salary standard.

(2) Under the conditions of increasingly perfect labor market and free movement of labor, according to labor supply and demand conditions and job needs, timely adjustment of salary standards and pay relations to ensure the rational use and allocation of human resources.

(3) Compensation management should be good at applying behavioral scientific incentive theory, and more effectively use material benefits to encourage employees to complete their tasks vigorously and fully. In salary management, the so-called incentive refers to in the labor field with certain social, economic, political and ideological factors to stimulate employees to generate a certain motivation and internal motivation, and work hard to achieve the desired goal. In other words, incentives are a process of mobilizing enthusiasm. Through incentives, employees can give full play to their labor skills and improve work efficiency.

A researcher in the United States found that under the time-based compensation system, if a person is not motivated, he can only exert his or her ability from 20% to 30%; if he is fully motivated, his ability can be exerted from 80% to 90%. That is to say, the same person's role after being motivated is equivalent to 3 to 4 times before the stimulus, so how to motivate? First, the needs of employees should be investigated. Because the labor behavior of employees is driven by motivation: motivation is caused by need. Understand the needs and motivations of employees, make correct judgments to guide them, and mobilize their labor enthusiasm. Secondly, according to the needs and motivations of employees, the use of remuneration to guide and control the labor behavior of employees, in order to improve the efficiency of remuneration. Third, the enthusiasm of employees (the strength of incentives) mainly depends on the satisfaction of needs.

When the employee needs and has the possibility of achieving this goal, he will have a higher enthusiasm. The higher the probability of achieving the goal, the stronger the motivation and the greater the enthusiasm. Therefore, all units should be practical, average and advanced when formulating labor quotas or assigning tasks. By the same token, the amount of salary should be equal to the difficulty of reaching the fixed amount, and should be compatible with the living standards of employees. Otherwise, the incentive intensity is low and the motivation cannot be mobilized. Finally, each unit should allow employees to discuss and agree on the goal of compensation and effectiveness, and closely link the goals of the organization with the interests of the individual.