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questions :Pay in compensation managment
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[Visitor (58.214.*.*)]answers [Chinese ]Time :2020-10-10
In some small and medium-sized private enterprises, the management often finds it difficult to abandon the concept of “emphasis on material and light on manpower”, believing that employees’ high-paying work can be compensated by immediate compensation, failing to recognize the value-added potential of human capital, and ignoring the long-term investment of human capital and the compensation system Lack of long-term incentive mechanism. We believe that there are mainly the following five core issues:

Problem 1: There is no reasonable salary system

Most small and medium-sized private enterprises have not established a reasonable salary system. The lack of a salary system often affects the organic combination of various human resources systems, and fails to give full play to the functions of the various human resources systems of the enterprise, and even conflicts, which greatly affect the effect of enterprise human resources management .
Some business bosses decide the salary standard of applicants only based on negotiation situation and past experience. The lack of scientificity results in the inconsistent salary standard of enterprise employees. When making salary decision, subjective factors play a large role and there is no scientific basis.

The root causes are mainly in two aspects: First, small and medium private enterprises have not yet realized the necessity of establishing a salary system. Second, companies lack human resource management professionals. Most of the management of human resources is carried out by non-professionals, and the result is insufficient.

Problem 2: The imbalance of salary elements
Enterprise salary generally consists of basic salary, performance salary, bonus and welfare, allowance and other parts. In some private enterprises, there is often insufficient attention to benefits as a salary element.

Enterprise employees have different needs in terms of salary, and the unreasonable structure of salary elements often affects the flexibility of the company's salary system in the operation process, and cannot form short, medium and long-term incentive effects for employees.

Even in many small and medium-sized private enterprises, the design of self-help benefits is not carried out, resulting in poor incentive effects. Some companies have no performance pay or the performance pay ratio is too low, and the fixed pay ratio is too high, which affects the effective play of the role of salary incentives.

Problem 3: Unreasonable salary distribution policy
Due to the limitation of the size of the enterprise, the salary level of the employees in small and medium-sized private enterprises is similar to the market average as a whole, and even slightly less than that of larger enterprises. In addition, in order to reduce costs, companies often control remuneration, resulting in unreasonable remuneration policies in most small and medium-sized private enterprises and no effective performance management system.

Therefore, when distributing remuneration, companies cannot base their employees on their contribution to the company, but only use the level and job content of the employees as the distribution criteria. As a result, the company’s remuneration lacks competitiveness and it is difficult to attract or retain outstanding talents.

Problem 4: Lack of effective incentive mechanism
Although the performance pay system is a common form adopted by small and medium-sized private enterprises, in fact, the wages of employees are not really combined with the performance of employees. Due to the lack of scientific and reasonable performance evaluation standards, it is impossible to scientifically and accurately measure the contribution of employees. The mismatch between salary and performance leads to a decline in employee work efficiency and greatly reduces the incentive function of salary.
In addition, the salary system of small and medium-sized private enterprises lacks long-term incentives. The management of some small and medium-sized private enterprises often finds it difficult to abandon the concept of “emphasis on material and light on manpower”. Value-added potential, neglect of long-term investment in human capital, and the lack of long-term incentive mechanisms in the compensation system.

Problem five: lack of fairness in salary distribution

Due to various reasons, most small and medium-sized private enterprises have not yet established a comprehensive and complete salary management system. When applying for employment or after negotiating with them, the bosses of the company decide the salary of the employees based on their experience and personal preferences. The subjective arbitrariness is relatively large, resulting in internal employees The wage standard is not standardized.
The irregular phenomenon of the internal salary management system of the enterprise has caused the problem of different pay for equal work or different work for equal work within the enterprise. Employees feel unfair in their hearts, which makes employees have no sense of identity and belonging, and affects their enthusiasm for work.

to sum up

In short, as one of the basic tasks of enterprise human resource management, salary management plays an important role in the stability and development of enterprises. Therefore, if an enterprise wants to achieve good development, it must not only ensure that the salary management realizes the principle of fairness and reasonableness, but also pay attention to timely and appropriate salary reengineering, and it cannot be unchanged from year to year without any adjustment and innovation.
The establishment of a salary management system must not only meet the requirements of internal consistency and external competitiveness, but also make dynamic adjustments based on employee performance, ability characteristics, and behaviors, including determining the salary level of the management team, technical team, and marketing team, and determining the level of scarce talent Salary level and determine the salary level compared with competitors. Such a salary system can support the company's strategy, meet the needs of employees, and achieve a win-win situation.
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