What Is a Remuneration Policy?

Compensation policies are policies formulated by the organization that provide basic guidelines for important aspects of compensation decisions and payments. It affects the wages and benefits levels, grades, and payment methods of employees at all levels and at the same time, but also affects wage growth benchmarks, promotion and demotion policies, and overtime wage policies. The human resources or compensation policy committee appointed by the board of directors usually formulates and confirms, and the human resources department is responsible for the specific implementation. ^[1]

Remuneration policy

In the process of transitioning planned salary management to market-based salary management, companies especially need the support of personalized salary policies before they can enter the normal salary management process as soon as possible, so that the salary reform will not be regarded as an enterprise's salary management activity itself. pickle.

I. Individual decision-making policies are jointly planned by the corporate decision-making team and the compensation expert team

Due to the particularity of state-owned assets, enterprises must pay attention to the market competition and talents faced by enterprises on the basis of rationalizing the distribution relationship between state, enterprises, investors, laborers and other stakeholders, with the wisdom of compensation experts, combined with corporate development strategies. Based on the characteristics of liquidity, according to the standard salary policy framework, the basic orientation and main ideas of enterprise salary management are put forward. So as to avoid the negative effect of fairness and rationality to the company, the Chief Executive Board compensation decision method may be brought to the company.

Improving the transparency of corporate compensation policies

For employees, fairness means both the fairness of pay distribution results and the fairness of pay management procedures. Pay attention to employee motivation should not only focus on employees 'previous actions, but also pay attention to employees' future work behavior. It is impossible and unnecessary for employees to understand the technical and specific details of salary formulation. However, the orientation of compensation policies and incentives can make employees feel the tendency of the compensation system. This is very important for the incentive process. Therefore, companies must promote the basic spirit of compensation to employees through appropriate channels and means.

3. Emphasizing the objectives of the remuneration policy, but not inconsistent with national laws and regulations

With the development of the market economy, the right to pay management is gradually transferred to enterprises. The government can no longer directly control the entire process of corporate compensation management. Enterprises' grasp of remuneration policies should be reflected in some specific goals and indicators. For example, the goal of attracting / retaining valuable talents and the goal of controlling labor costs are to some extent contradictory. Enterprises should distinguish between the focus and relative non-concern according to their different development stages, different economic strength, and different personnel qualities. Key goals.

In this process, companies must also abide by relevant national laws and regulations. For example, under certain conditions, enterprises must strictly abide by the regulations on total wages, and cannot break through the control of total wages in disguise. At the same time, the basic legitimate rights and interests of vulnerable labor groups must be effectively protected, and a collective bargaining mechanism should be gradually established to ensure that the enterprise's compensation policies can be implemented in a healthy manner.