What Is Fixed Remuneration?

Compensation is various forms of compensation that employees receive for providing services to their organization. Narrow pay refers to money and pay that can be converted into money. In addition to the narrow compensation, the broad compensation also includes various non-monetary forms of satisfaction obtained.

Pay

Compensation is the various forms that employees receive for providing services to their organization

Remuneration, consisting of salary and remuneration. In a real business management environment, the two are often used together.

salary

Salary

Remuneration should play its due role. Remuneration management should achieve the following three goals: efficiency, fairness and legality. Achieving the goals of efficiency and fairness can promote the realization of salary incentives, and legality is the basic requirement of salary, because legality is the foundation of the company's existence and development.

(1) Efficiency target

The efficiency goal includes two levels. The first level is from the perspective of output, and the greatest value that compensation can bring to the performance of the organization, including the performance evaluation of all employees; the second level is from the perspective of input, and achieves Control of salary costs. The essence of compensation efficiency goals is to bring the most value to the organization with appropriate compensation costs.

(2) Fair goals

The fair goal includes three levels: fair distribution, fair process, and fair opportunity.

Fair distribution means that the organization should meet the fair requirements when making personnel decisions and determining various incentive measures. If employees feel they are being treated unfairly, dissatisfaction will arise. Employees' perception of fair distribution comes from subjective comparisons of their investment in work and income. In the process, they will also be compared with past work experience, colleagues, colleagues, friends, etc. Distribution fairness is divided into three aspects: self-fairness, internal fairness, and external fairness. Self-fairness, that is, employees' salaries should be proportional to their pay; internal fairness, that is, employees in different positions in the same enterprise should receive salaries proportional to their respective contributions to the enterprise; external fairness, that is, the same industry and the same region Or pay for similar positions in different companies of the same size should be basically the same.

Process fairness means that when deciding on any reward or punishment decision, the decision standard or method on which the organization is based conforms to the principle of fairness, fair and consistent procedures, clear standards, and open processes.

Opportunity fairness means that the organization gives all employees the same development opportunities, including the organization communicating with employees before making decisions, the organization's decision taking into account the views of employees, the supervisor considering the employees' positions, and establishing an employee appeal mechanism.

(3) Legal targets

A legitimate goal is the most basic premise of enterprise salary management. It is required that the compensation system implemented by the enterprise meets the requirements of national, provincial, and regional laws, regulations, policies and regulations, such as the minimum wage system, statutory insurance benefits, and salary guidance system.

For a long time, human resources work in enterprises has not been easy to carry out. In some companies' value chains, the role of the human resources department is often overlooked. Increasing pressure on corporate human costs is a good time for human resources departments to play a role in controlling costs and increasing performance. So, in the face of rising salary pressures, how can human resources departments help companies achieve profitability? In the final analysis, it is still necessary to fight a talent strategy battle. Need to do salary management in the following areas.

The first is the impact of the position or individual on salary

The second is the impact of companies on compensation

The third is the external environment.

Compensation includes the following four elements:

The first step: design the organizational structure and divide the posts of the department.

Step 2: Perform a job evaluation and write a description for each job to determine the pay hierarchy.

The third step: According to the profitability of the industry and the company, the annual salary budget is how much money the company intends to pay for the payment of benefits.

Step 4: Form the overall compensation. General salary is composed of fixed part + floating part, generally middle and senior

Salary is divided into economic salary and non-economic salary, and economic salary is divided into direct economic salary and indirect economic salary.

According to the form of currency payment, salary can be divided into two major parts:

Part of the wages are paid in the form of direct monetary compensation, including basic wages, bonuses, performance wages, incentive wages,

There are four basics of salary payment: Position, Person, Performance, and Place. This is the so-called "4P" theory.

The implicit logic of job-based salary design is that salary payments should be determined based on the relative value of the job. Thinking deeply, in fact, this way is to

The principle of salary payment is to ensure that the payment is fully motivated, and it must follow some basic requirements. There are six aspects in summary:

I. Timeliness of salary payment.

The monthly salary must be paid once a month and at a relatively fixed time. If there are special circumstances, it must be explained to employees in advance. Employee compensation is not a company's charity, but a company's liability to employees.

Second, the cash principle of salary payments.

That is to say, the basic wages, reward wages and additional wages paid to employees can only be paid in the form of cash, not in the form of enterprise shares or enterprise products.

Third, the principle of full payment of salaries.

This means that the promised salary must be agreed in time and paid in full without any interception. In reality, some companies only pay salaries to employees at a certain percentage, and the remaining part promises to be fulfilled someday in the future.

4. The agreed principle of salary deduction.

In business management, punitive fines are necessary for certain behaviors of employees, such as absenteeism, lateness and absenteeism to deduct a certain amount of basic wages, reward wages and additional wages. However, such deductions must have a clear agreement in advance, and every employee should be familiar with this advance agreement, and there must not be any black box operation or any additional additions afterwards.

Fifth, the principle of performance-related benefits.

That is, the enjoyment of benefits such as social insurance and housing funds requires that the payment ratio and payment method must be standardized in advance, and linked to performance evaluation, and the performance evaluation score and the amount and proportion of employee benefits insurance must be clearly defined.

6. Principles for guaranteeing salary advances.

Under normal circumstances, companies will not allow arbitrary advances in wages, but this cannot be done across the board. Each employee faces a variety of problems. If the salary advances are over-determined, it will make employees feel that the company lacks human touch, and it is difficult to rely on the company as their own, thereby reducing the sense of belonging to the company.

Determining compensation strategies can be considered from three aspects

First, at what stage of the organization's life cycle is the company? In its infancy, the company has no clear job description. At this time, external fairness is often more important than internal fairness. When designing the system, we must consider the flexibility to attract special talents and the compensation structure. It should be flexible, and short-term incentives are often more important. In addition, the strategies adopted in the growth stage, mature stage, and recession stage are different.

Second, the company's business operations can be divided into three value principles: product-oriented, operating cost-oriented, and customer-oriented. The value strategy adopted by each value principle is also different.

Third, the compensation strategies adopted by different cultural orientations are also different. When considering the cultural perspective, it can be considered from the aspects of the company's process and results, the openness and closure of the company's culture, and the focus on teams and individuals.

P1: Strategic positioning-Price [Set salary price according to corporate strategy]

P2: Grading by position-Position [Based on post requirements, develop a level]

P3: Set salary based on ability-Person [determine salary based on personal ability]

P4: Performance-based awards-Performance [based on personal performance, pay bonuses]

I. Human resources management and salary management under the background of drastic changes in the business environment

1,

When designing remuneration, certain principles must be followed. These principles include strategic orientation, economy, employee value, motivation, relative fairness, and external competitiveness.

Strategy-oriented principle

The strategy-oriented principle emphasizes that enterprises must analyze from the perspective of corporate strategy when designing compensation, and the formulated compensation policies and systems must reflect the requirements of corporate development strategies.

2. Economic principles

The economic principle of salary design emphasizes that the company must fully consider the characteristics of its own development and its ability to pay when designing salary. It includes two aspects of meaning. In the short term, after deducting various non-labor (human resource) expenses and costs, the company's sales income must be able to pay the salaries of all employees of the company; in the long term, the company is paying all employees. After remuneration and compensation for non-labor expenses and costs, there must be a surplus, so as to support enterprises to increase and expand investment and obtain sustainable development of the enterprise.

3. Embody the principle of employee value

Modern human resource management must resolve the three basic contradictions of the enterprise, namely the contradiction between human resource management and corporate development strategy, the contradiction between corporate development and employee development, and the contradiction between employee creation and employee treatment.

4. Incentive principle

5. The principle of relative fairness (internal consistency)

The principle of internal consistency is the application of Smith's fairness theory in salary design. It emphasizes that companies should "

The operating mode of salary includes high elasticity mode, high stability mode and compromise mode.

In the growth period of the enterprise, it is necessary to adopt a highly elastic salary operation mode, reduce the ratio of rigid salary and increase flexible salary. The high percentage of bonuses and allowances will greatly stimulate employees' work enthusiasm and tap their potential, which is also very much in line with the needs of enterprises to rapidly increase productivity and rapid development at this stage.

In the mature stage of the enterprise, it is necessary to adopt a high and stable salary operation mode. At this time, the enterprise must maintain the current level of operation. The potential for increased investment at this stage to promote improved production efficiency is very low. Enterprises are more eager to stabilize existing human resources and use their high proportion of product market shares to obtain high profits. A high percentage of rigid compensation is conducive to the stability of personnel, and promotes enterprises to maintain profits and protect the market.

In the recession phase of the enterprise, a mode of compromise compensation should be adopted. At this time, the enterprise urgently needs to collect the available profits and invest elsewhere. At this stage, the company focuses on controlling or even reducing costs, and achieves this goal by gradually reducing the proportion of flexible compensation. The compromised salary operation mode is conducive to the stable loss of the enterprise and the minimum exit from market competition.

In this way, employees have a strong sense of security, but poor incentives; the compromise model emphasizes moderate differences and rigidity, balances the proportion of basic salaries and bonuses, and attaches importance to benefits, benefits and insurance. This approach also takes into account employee safety and

First, clarify the difference between giving and effective giving, the concept of income, part of income, all income, etc.

All efforts of employees in work are "paying", but there is a difference from "effective giving". Only those who truly create value for the company are "effective giving", and only "effective giving" can provide employees with income, not You should make more money when you are busy, and there is no value in being blind. In addition to salary income, employees' income also includes non-material returns such as training, promotion opportunities, development opportunities, psychological income, and quality of life. Through the clarification of these concepts, employees can have a scientific understanding when measuring their contributions and returns, thereby reducing the employee's injustice.

Second, increase employees' awareness of their own positions through open position evaluation methods

Job evaluation is a comprehensive evaluation of the value of various positions in the enterprise. Through the training of job evaluation, employees are made aware of the scientific nature of job evaluation. Through open and serious job evaluation, employees feel the fairness of the evaluation process. Experts with experience and ability as evaluation subjects make employees feel the accuracy of evaluation, so that they can recognize and accept the results of job evaluation from the bottom of their hearts, link the value difference of job evaluation with the salary difference, and avoid employees who are caused by the vague compensation basis Mistrust and suspicion of favoritism and discrimination make employees rationally understand the differences in pay within the company. Our company is doing

The pay control model is

After establishing the pay control model, an important part of pay control is to determine the

Regardless of the degree of control, the group company always needs to verify the total salary of its subsidiaries.

For the control of total salary, individual companies mainly consider labor cost control, while group companies are more important in balancing the incentives and constraints of subordinate companies. Group companies must not only prevent subordinate companies from using various names to pay, which leads to excessive labor costs and cannibalization of the company.

In specific operations, there are some details that are prone to loopholes and require special attention from group companies:

1. Regulate the compensation and benefits of affiliated companies

After determining the compensation strategy of the subsidiary company and approving the total compensation, the group also needs to pay attention to regulating the compensation and welfare items of the subsidiary company to prevent the subsidiary company from changing the established compensation strategy or breaking the total compensation by setting various types of non-standard compensation and welfare items. The most important of these are items that come in the form of expenses or benefits.

2. Regulate the remuneration of directors, supervisors, management and financial personnel sent by group companies

In a group enterprise adopting the system of dispatching key personnel, we must also pay attention to the remuneration of the personnel dispatched by the group company, especially the remuneration of directors, supervisors, management and financial personnel. Because these people are the key to working on behalf of the group to protect the shareholders 'rights and interests, if they lose control of their salary settings and benefits, it is very likely that the shareholders' rights and interests will not be properly protected, and the management and control of the group will be out of control.

awareness

In the past, our thinking was that China's labor costs were low. At that time, it was right, and it may not be right. The earlier this understanding is, the better it will be for the enterprise to make a compensation system. Maybe we still can't talk

For enterprise human resource management, the compensation system is undoubtedly the basic and core content. Due to the sensitivity and importance of compensation, it is very necessary for the enterprise to establish a reasonable compensation system. If there are unscientific and unreasonable problems in the company's remuneration system, it will not only affect employee satisfaction and reduce the employee's enthusiasm for work, but in serious cases, it may also lead to employee turnover, thereby affecting the stability of the enterprise.

In the enterprise salary system, there are actually multiple classifications, each of which is different, and is generally divided into four types of positions, skills, markets, and performance. Enterprises can make reasonable choices based on their actual development.

I. Post-oriented compensation system

The system is mainly based on posts, but not all are implemented in accordance with posts, that is, the company determines the salary based on the importance of the post, its contribution to the company, and the difficulty of the post based on the job evaluation. However, this pay system model is not suitable for use alone.

Skill-oriented compensation system

This kind of salary system is widely used in private enterprises. It is mainly based on ability to set salary, which has strong fairness. In fact, it is similar to the traditional "more work and more work" principle. However, this pay system is prone to pay differentiation, and companies need management in this area.

Market-oriented compensation system

This compensation system is relatively reasonable because the determination of compensation is based on the market, which not only reflects good fairness, but also benefits the market competitiveness of corporate compensation. For example, the formulation of salary levels can be carried out through salary surveys, which can make their own salary levels more competitive.

Performance-oriented compensation system

As the name implies, performance is the employee's work performance, and the corresponding is the employee's personal ability. The performance evaluation widely used in enterprises is the best interpretation of this system. Performance-based compensation system can well strengthen the role of compensation incentives.

I. Departure from corporate strategic management

Why can't companies find the right people? In addition to company management atmosphere, company brand, culture and other factors, talent attraction and retention are nothing more than two levels of incentives and highlights: one is spiritual motivation, and the other is material motivation. Summarizing the market-related data from the management's normality, it is found that the talents who are currently in material incentives still account for the vast majority, because people are economic people and drivers of interests. When we know the true needs of employees, we are formulating The compensation strategy must be combined with two considerations: one is the corporate strategy, and the other is the market salary level. Indispensable, corporate strategy tells us which direction the company is developing and its future. In the development process and various stages, the positioning and standards of talents will be revised and adjusted accordingly. The market salary level directly tells us what stage the company's payment level is in. Compared with the industry and the market, what is the gap between the company, especially some important and core positions, which one will the company adopt? Strategic compensation? a is lower than the market wage, b is equal to the market wage, and c exceeds the market wage and is ahead of the market wage level, so the company's strategy will directly affect the formulation of the salary strategy and the integration of the budget.

Compensation management is consistent with corporate strategic management, which does not mean that the strategy is exactly the same as the strategy. I think that every time the salary adjustment is impossible, all employees are not satisfied, at least a small number of employees are dissatisfied, and even complain that these phenomena occur without any fuss. Since it is a strategy and tactics, it must be focused and prominent. Therefore, it is not satisfactory to everyone. It is better to satisfy key and core positions and talents first, retain the core talents of the enterprise, and develop talents that can be promoted. Only in this way can the annual salary adjustment not cause serious shocks as much as possible, so as to prevent the loss of outstanding talents. Every year, HR managers and even corporate CEOs are happy and worried about the annual salary adjustment. I'm glad I can raise my salary again. I am worried that the salary is not adjusted. In the first tone, complaints are commonly heard. HR is not scolded, and the boss is scolded not by people. What is the reason? We did nt consider the corporate strategy beforehand , Different stages of enterprise development, operating products, business characteristics and other factors formulate matching and matching compensation strategies, so in the end it will lose the meaning and role of compensation incentives, and instead cause a situation of good intentions to do bad things. ^[2]

Lack of transparency in pay adjustments

The vast majority of companies believe that compensation adjustments are only known to the company's management, and are always hidden. It is strictly forbidden for employees to spread, inquire and discuss the company's salary structure, rank salary standards, annual salary adjustments, etc. Then I would like to ask entrepreneurs and HR management experts, is your company's salary really confidential? Is it true between employees? Do not discuss and inquire? Who can give a positive answer? I think there should be very few respondents who can be full of confidence. This fully illustrates a problem. Everyone knows that this is a formal problem and a superficial problem. Why do we You have to keep it secret, and never make it public?

This opacity has actually dampened the motivation of outstanding employees. In the annual salary adjustment, I can always see the mysterious secrets of each business department and the leader in charge calculating how much salary each employee should increase, but the employee does not know when the salary should be adjusted. What is the standard and basis for salary adjustment? Who should be paid? What are the principles and conditions for pay adjustment? Those who directly benefit are not clear, but instead cause private inquiries and discussions between employees in private. In the long run, the company has formed a strange phenomenon, which is vicious. Loop, closed public discussion. Such an atmosphere is serious harm to good employees.

Open and transparent pay adjustment can achieve a lasting incentive. Because open and transparent means relatively fair, reasonable and balanced. It is to tell employees when the company will adjust the pay time uniformly, so that employees have a look forward to. In addition to the golden time for public salary adjustment, companies must also clearly inform employees, what is the scope of the company's salary adjustment? Where does the standard come from? The proportion adjusted by different levels? Such openness and transparency is conducive to the formation of a healthy competition, More understanding, less complaints and less public discussions. Concentrate on hard work and give up some vicious behaviors and behaviors. As the saying goes, openness and transparency are equal to the reputation of corporate management. Don't always see the negative side of anything. As business leaders and related managers, you should see the positive side.

Third, the salary budget is not scientific

In the compensation adjustment, the management also knew the positive effect of the compensation adjustment on employees. They are not afraid to process employees, they are afraid that the increase and budget will be difficult to control, and ultimately exceed the expectations of the enterprise. This kind of worry is not unreasonable, because when companies are making compensation adjustment plans, the budget does not know what criteria to predict. Here are my suggestions for your reference. 1. Take the company's annual sales growth or net profit as the salary adjustment budget; 2. Use the market salary level as a reference to calculate the company's pre-increased salary. Total and special gaps; 3. Calculate the total salary adjustment based on the GDP growth rate of the current year as a reference; 4. Estimate the increase in total salary based on the ratio of the minimum wage increase in the year and the increase in the various insurance bases; 5. Promote and resign from company personnel Ratio, pre-increasing recruitment positions and the corresponding number of people as the forecast standard for increasing total salary, etc. Of course, salary adjustment must be linked to rank, position, and ability. It is also reasonable to set different salary adjustment ratios according to different positions and levels. After all, the degree of risk that is managed and assumed is different, and the contribution value is different. All employees are the same size, a proportion, salary adjustment should show differentiation, and all incentives are equal to no incentives.

The lack of balance between pay management and performance

In most private enterprises in China, many important decisions are made by the boss, and the relationship is more important than ability requirements. In the early days of the company, it may still focus on performance and development. When the company's development is stable, the situation will change. It is close to the boss and has a good relationship. The second salary adjustment always has an advantage over others. At this time, the boss is not thinking about how the performance increases, but more about stability, so there is no absolute good or bad, but whether this phenomenon can support the long-term development of the enterprise. What is talent? What is good job performance and excellent performance? The boss said that you are talent, you are talent, and that you are good, you are good. Therefore, in every salary adjustment, there is a lack of fairness, and employees cannot accept it. Instead, the company believes that the company has spent money, but its employees do not recognize it. The reason is that the demand point and evaluation focus for adjusting salary are not in place, and the performance output and job competence are not the benchmark. One more subjective, less scientific and practical.

V. Salary adjustments cannot be supported by employees

The most important role of compensation management itself is to motivate employees to work, but if compensation management is separated from employees, it is only a relatively closed decision between management. So whether or not employees can get the opportunity to increase their salary, as an enterprise manager, it is necessary to conduct an interview and exchange with employees. The cornerstones of the interviews and exchanges will be based on the actual operation of the company, some conditions and principles of this salary increase, and whether the employees' performance is consistent. Communication is to be true and effective, without the need for employees to guess. Although some employees have opinions, ideas, and complaints, they will not affect the emotions of a large number of employees. Therefore, it is necessary to prepare for an interview beforehand with the event, and it will certainly achieve better results.

Lack of reasonable pay structure

Many companies see that other companies have effective compensation structures based on design standards. They like to copy directly and effortlessly, but they cannot play the same positive role. In order to design a good compensation structure, it is necessary to deeply understand the guarantee and incentive factors of compensation, both of which are indispensable. Therefore, as the CEO and HR manager of the company, it must be tailored according to the characteristics of the company in which they are located. , No matter how good the other company's plan is, it is the best for your own company management. Blind design and building cars behind closed doors will only bring greater costs and costs in management.

7. Retaining leaving talent cannot be based solely on salary increases

Employee satisfaction is probably a matter of particular concern for every company. How to effectively improve employee satisfaction? Many companies simply adopt interviews when they face employees leaving. Employee departure interviews and analysis reports are done day by day and month by month, that is, they do not solve the substantive problems. In the end, they have no ability to solve them or do not pay attention to them. Therefore, these problems cannot be seen on the surface, but the problems are found through the problems. Through the phenomenon of turnover, understand and analyze the true essence of employees.