What Are the Different Types of Remuneration Systems?

The salary system is an important part of the overall human resource management system and system of the enterprise. Scientific and effective incentive mechanism can enable employees to exert their best potential and create greater value for the enterprise.

Salary System

Salary system: xn chóu zhì dù

Salary is not a single salary, nor is it purely financial. From the staff

There are many differences in the salary system for different positions.

Formulation of corporate pay principles and strategies;

1. Whether the establishment of salary is based on

The design of remuneration should follow five basic principles: the principle of fairness, compliance with laws, priority of efficiency, principle of incentive limits, and the principle of adapting to demand.

First, the principle of fairness

1.Internal fairness

(1) Employees work hard, make contributions, and obtain

The enterprise compensation system is the best connection point between the set of behavioral factors that induce employees and the corporate goal system, that is, to achieve specific organizational goals, employees will receive corresponding rewards.

Making a sound and scientific salary system is a major decision in management. Therefore, a complete and formal process is required to ensure its quality:

(1) Principles and strategies for determining corporate compensation

This is part of the corporate culture, the premise of subsequent links, and plays an important guiding role for the latter. On this basis, determine the company's relevant distribution policies and strategies, such as the principle of distribution, the standards for widening the gap, and the proportion of each component of the salary.

(2)

Employee dissatisfaction with pay is a very common phenomenon. Because people always have a tendency to value their own value and raise their ability to devalue the value contribution of others, they either feel that their pay does not match the absolute value of their salary, or that their pay gap with others does not reflect the value of their relative value . Companies that implement "fire management" for compensation have fallen into a vicious circle:

Implement different salary management to dynamically adjust the human capital benchmark of the enterprise.

Respect for pay and return

The level of employee wages depends on many factors inside and outside the enterprise

(I) External factors of the enterprise

1. Labor productivity in the whole society. The distribution of national income must be restricted by the labor productivity of the whole society. For example, Laka, an American economist, analyzed the statistics of the American manufacturing industry from 1899 to 1957 and found that during these 59 years, the wage content has almost always remained

In order to be considered a sound system, a good compensation system must meet the following functional objectives:

1. Ensure the service quality of employees.

2. Ensure the survival and development of the enterprise.

3. Play well maintained

1. Obey the law

Remuneration policies must comply with relevant laws and regulations formulated by the state and local governments. For example, the Labor Law and the Minimum Wage Guarantee Law promulgated by China, as well as the Labor Contract Regulations and Labor Regulations in Shenzhen Special Economic Zone.

Some enterprises have many problems in terms of labor, wage system and payment. On the one hand, they have damaged the labor rights of employees, and on the other hand, they have damaged the social image of enterprises. We often see in the media labor disputes caused by companies that owe wages to employees, irrational wage structures, delayed payment of wages, violations of minimum wage standards, or failure to pay social insurance in accordance with government regulations.

There is a private enterprise that produces furniture. The company is more efficient and employs mostly foreign workers. The company has a policy of working six days a week and working overtime on Saturday without overtime pay. Employees are dissatisfied with the company's remuneration policy, and even some of the employees who will leave the company jointly reported to the government labor department that the company violated labor regulations.

In fact, the company's approach can be adjusted with some adjustments, such as reducing the salary standard, but in accordance with legal requirements, calculate overtime wages for employees. This not only protects the legitimate rights and interests of employees, but also does not increase operating costs. The problem lies in the fact that the managers of the company do not understand the relevant regulations or have not paid enough attention, which has hurt the enthusiasm of employees, and both the company and individuals have suffered undue losses.

Efficiency first

Businesses want to spend the least money and produce the most benefits. However, in practice, many companies "suffer to increase or decrease" because of the simplification of the problem, and "uncomfortable to spend money." Employees will also "eat meat and scold mothers" due to improper business operations.

How to "spend money on the blade"? In the operation strategy, we must grasp the beauty of "just right". For example, a small amount of human welfare is a good example. It does not cost much, highlights personality, and is full of affection. The effect is very satisfactory.

The company I work for has a lot to recommend. For example, if the employees actively celebrate their birthdays every month, the company leaders preside over a simple reception to bring together the employees who have celebrated their birthdays in the month, which not only shows the company's importance to the employees, but also a rare communication opportunity. A greeting card and a bunch of flowers are not worth much, but this kind of warm care will make employees feel the company's recognition and respect for them. The actual effect is more effective than issuing large bonuses or other benefits. In addition, when employees' families are sick, the company will order flowers for them and send them to the home or hospital.

Third, the incentive limit

Some wealthy companies, at any cost, don't talk about strategy to give too much money can be bad, which not only reduces the profit margin of the company, but also does not serve the purpose of motivating employees.

A professional manager was dug by a headhunting company from a foreign company to a private company in Shenzhen to serve as general manager. The company has special trust in him and fully authorizes the control of others, property and property. It turned out that the company was poorly managed, the personnel system was not sound, and the pay policy was basically the boss's decision. There was no complete management system and lack of a performance evaluation mechanism. After the general manager arrived, he carried out a series of bold reforms, increased employee salaries, purchased social insurance, and some key personnel also purchased commercial insurance. The company provided employees with a number of special benefits, and employee morale rose sharply.

However, the good times did not last long. In less than a year, the company's human resources costs rose sharply, with a growth rate exceeding 40%, while its operating performance increased during the same period, but only 10%. This means that although the performance has increased, but the profit has declined, it has not been able to meet the operating goals set by the board of directors.

The general manager immediately took measures to reduce benefits and cut wages accordingly. As a result, it is conceivable that employees feel lost and dissatisfied, and a large number of outstanding talents have flowed out at the end of the year.

What's the problem? He violated the principle of incentive limits.

The growth of wages and benefits must have a gradual process, and a gradual increase in order to obtain incentives. In addition, there must be a cycle of wage increases to ensure the continuity of the pay policy.

Therefore, when designing a salary plan, several levels are generally set for the same position, etc., to ensure that employees have room for improvement in the same position. In addition to designing a certain period of probation period for newly recruited employees, in addition to taking time to understand the company and understand the position, it is more important to reflect the incentive limit, so that employees have a sense of growth and identity after entering the company.

There is also a problem. The rise in wages and benefits must predict the economic strength of the company and ensure the company's normal profit cycle. It cannot be adjusted until "green and yellow are not connected." When formulating a plan, there are two very important parameters that can be provided to everyone, namely the "two below" salary growth principle:

"The increase in total employee wages is lower than the increase in operating income over the same period";

"The growth in per capita wages of corporate employees is lower than the growth in company profits over the same period."

Fourth, adapt to demand

Maslow divides human needs into five levels. When we formulate our compensation policy, we must set corresponding compensation for employees at different periods and different types of employees. In other words, we need to find out the employees' needs (excitation points), and then "appropriate remedies," the best incentives.

According to human resources management and consulting experience, employees are divided into four types:

Mutually beneficial employees;

Organizational belonging employees;

Affective employees;

Dedicated employee.

Regardless of whether you acknowledge your level, this positioning exists objectively in the enterprise. What level are employees on? This has something to do with their position and job nature, but it depends more on their mentality and identification with the company. Our research has put forward opinions on a level, and more in-depth development and practice tests are needed.

It can be seen that we cannot formulate our remuneration policy uniformly using the "big and comprehensive" method. Instead, we must consider the differences in levels and adopt flexible and diverse remuneration models to serve the goals of the enterprise and gain recognition.