What kind of salary system is healthy?

An effective incentive mechanism will enable employees to exert their greatest potential and create greater value for enterprises. Among many incentives, salary is the most important and the easiest to use. In the minds of employees, salary is not only their own labor income, but also represents their own value to a certain extent, represents the recognition of employees' work by enterprises, and even represents their personal ability and development prospects. Therefore, the system and application of enterprise salary management system will play a great role in retaining talents and maintaining competitiveness. For the healthy and sustainable development of the company, we will build a perfect human resource system and build a talent growth ladder for proactive employees, such as survival of the fittest, promotion of the capable, concession of the flat and mediocrity. However, the new system inspires us with performance standards that advocate continuous self-improvement, self-transcendence, passion and courage to take responsibility. The shadow of the core values of the common growth of enterprises and individuals is lower than the old commission level and more difficult to achieve. How can I ask my boss to reconsider this situation? This is particularly obvious in the formulation of corporate compensation. Enterprises often fall into a self-centered misunderstanding, rather than considering the needs of employees. This is mainly reflected in the following points: conceptually, employers believe that paying employees' wages is a cost. In fact, salary should be regarded as an investment of enterprises. If salary is regarded as a kind of cost, the employer should first consider the cost control. When many specific policies are formulated, salary will not motivate employees, which is the starting point of salary formulation. In salary formulation, position is often the center to determine salary and salary benchmark. Whoever has a big official will earn more. This is true to some extent, but it does not reflect the value contribution of employees' work to the enterprise. Employees don't feel the recognition of their work by enterprises, so they will dampen their enthusiasm for work. In terms of salary structure, many enterprises are unified now, such as fixed salary, performance salary and some statutory benefits and allowances. Lack of necessary concern for the quality of life of employees, if a branch manager is sent abroad and he has family and children's education, how should the company deal with the treatment problem? I believe that many enterprises have not come up with a satisfactory solution to this problem, or have never thought about it at all. How to make a satisfactory salary system can be considered from the following three points: improving the work structure. When we talk about remuneration, many people's first reaction is to think of money. In fact, an employee will work for many reasons, not just for money. Getting a sense of accomplishment at work should also be part of the reward. Recognizing this, the first thing a company should do is to improve its work structure. Only a good job can have a satisfied employee. What is a good job? Work is meaningful and complete for employees. If the company forces employees to do jobs that they are not interested in, or makes them feel that their decision-making power is insufficient, then even if there is a good salary, employees will not be satisfied, not to mention the salary is lower than the market average. Establish a value-oriented salary management system. This is mainly reflected in two aspects, one is to determine the basic salary by measuring the value of employees' positions by value, and the other is to measure the performance of employees within the specified time by value. This part can be called bonus or performance pay. Many enterprises only determine employees' salaries according to their academic qualifications and work experience, which can easily lead to formalism at work and dampen the enthusiasm of some employees. Because education and work experience cannot guarantee that employees can create value for the enterprise. Self-help wages. This practice is very popular abroad now. Its core idea is to treat employees as customers. Different employees have different requirements for work remuneration due to personal conditions, family environment and other factors, and enterprises should try their best to meet the different needs of different employees. Therefore, enterprises divide different salary structures under the guidance of salary, and set multiple options under the same salary category, so that employees can choose according to their actual needs. This approach is to consider the needs of employees and let employees decide their own salary structure, which will enhance their sense of participation and correspondingly improve their job satisfaction. We met many bosses during the consultation process, and they were all very active when it came to management reform. But when it comes to raising wages for employees, it is very difficult. They think that the increase of employees' wages means the increase of costs. But one thing they may not have thought of is that there will be no satisfied customers without satisfied employees. Customer satisfaction is the foundation of enterprise's survival and development. Avoid scholar's spirit and distinguish between narrow sense and broad sense. Generally speaking, private enterprise bosses tend to "do whatever they want" before they realize the importance of salary. As this issue does not involve salary design, it will not be considered for the time being. However, when some bosses realized the importance of salary design, they began to "study hard" and imitate and use it in order to better understand it. However, at this time, it is necessary to prevent the problem of scholar's spirit! As we know, as far as the word "salary" is concerned, there are broad and narrow meanings. Salary in a broad sense includes all kinds of "income" such as cash, materials and even wages, bonuses, welfare and labor insurance. However, wages in a narrow sense are much simpler, in one word-money! Generally speaking, the "salary" mentioned by the applicant when talking with the boss refers to the money that can actually be earned every month, which is a narrow sense of "salary", and everything else is incidental or additional! As a boss, you should be very aware of this, and avoid the scholar's spirit and equate the "salary" in the book with the "salary" of the applicant. In doing so, first, you can't reach a deal, and second, even if you get a deal by luck, you will break up soon! Second, avoid pushing down the price desperately and value "relative fairness"! When talking about salary with candidates, some bosses always like to ask candidates "original salary level" in order to drive down the price desperately. Obviously, according to the applicant's level, he should enjoy higher salary, but there is always the idea of "giving one less counts as one", which is the most taboo! As bosses, we should be soberly aware that candidates not only care about how much salary they can actually get, but also care about whether the relative value is fair. When the absolute value of the candidate is satisfied, the transaction is completed soon. However, once he knows that he is different from people in the same level and position, the feeling of "relative value" unfairness will occur in an instant. If it is not resolved in time, it will soon lead to a breakup. If it is solved in time, it may be "losing face and money". If I had known this, why should I have? Three bogeys cover everything, and if there are many directions, there is no goal! Some bosses always like to ask all kinds of questions when designing salary schemes, which is also the most taboo! We know that the focus of salary should be on the goal we want to achieve most. For example, when sales are not good, we can make a salary plan calculated according to actual sales; When the output does not go up, the output wage can be set according to the output. Salary is "lever" and employees are "wheels". If we want to roll forward to the wheel quickly, we must have a "fulcrum", and this fulcrum is our breakthrough point. In my opinion, it is not a good thing to start from more than one point, because when we cover everything, employees' thoughts may have been blurred long ago, and employees with vague thoughts will not only find their goals, but will lose their way! First of all, employers should have an accurate and clear grasp of the composition of wages. National laws have clear provisions on the composition of wages. Employers should accurately grasp, make the wage management reasonable and legal, and avoid various risks, such as the payment of social insurance and the calculation base of overtime wages. Pay workers' wages in accordance with the law, in time and in full, and pay special attention to the reasonable payment of wages under special circumstances, such as overtime pay, sick leave pay, annual leave pay, and wages during shutdown. , to avoid unnecessary disputes, especially the employer shall not default and arbitrarily deduct the labor remuneration of workers. Secondly, providing fair and competitive salary is one of the important factors to achieve satisfaction and motivation in the salary system. For employees who get paid through labor, they must be convinced that the pay and remuneration must be compatible. If the enterprise fails to establish the necessary reliability on the salary issue, then the employees' trust in the salary system will also decline, and their work enthusiasm and initiative will also be greatly reduced. Competitive salary can make employees know how to cherish their jobs from the first day they enter the company, because companies that pay high salaries can attract employees they need, especially excellent employees, which is particularly important for companies that are in the leading position in the industry. Higher salary will inevitably bring higher satisfaction and loyalty, followed by lower turnover rate. The lack of market competitiveness of salary will cause enterprises to lose core employees, forming a vicious circle in which enterprises constantly recruit new employees to meet the operation of enterprises and old employees constantly leave their jobs, which will inevitably lead to a huge waste of enterprise resources. The fairness and competitiveness of enterprise salary system are relative, which should be determined according to the development stage and economic affordability of the enterprise. Third, rationally design welfare projects that meet the needs of employees. The incentive effect of salary is closely related to the welfare of employees. Employees' personal benefits can usually be divided into two categories. One is statutory welfare, which is the welfare that enterprises must pay for employees according to established standards, such as basic old-age insurance, unemployment insurance, maternity insurance, medical insurance, work injury insurance, etc. The second category is the welfare items independently set by the company according to its own situation, such as travel, physical examination, paid vacation, off-job study, public transportation, housing support or purchase support plan. When employees measure the personal salary level to compare the salary attractiveness between enterprises, they usually turn these benefits into income. Therefore, a perfect welfare system is of special significance for attracting and retaining employees, and it is also an important symbol to measure whether the human resource management system of enterprises is perfect. A well-designed welfare structure can not only bring convenience to employees, enhance the loyalty of enterprises to the company, but also help to enhance the social prestige of enterprises and obtain a steady stream of excellent employees for the company's business development. Fourth, it is difficult to achieve the best incentive effect by linking salary with performance. Only when salary and performance are closely combined can the enthusiasm of employees be fully mobilized. From the perspective of salary structure, the appearance of performance pay has greatly enriched the connotation and function of salary. In the past, the single non-incentive salary form has almost disappeared, and it has been replaced by a flexible and diverse salary system that closely combines individual performance and team performance. Performance pay has played an indelible role in the creation of company performance, but the implementation of performance pay may not necessarily achieve the expected results. The key is whether the design of performance pay is reasonable. If the performance pay scheme is not designed properly, the negative impact may be great. Designing a scientific and reasonable performance evaluation index system is an important guarantee for the successful implementation of performance pay. Performance pay should have a specific cash date and be cashed in time without delay, otherwise the immediate incentive effect of performance pay on employees will be greatly weakened; In addition, the design of performance pay system should cover all employees, some employees can not have performance pay, and some do not; When the company formulates the performance pay system, employees should be involved. The process of participation is not only a process of communication and training, but also a process of letting employees and companies find problems and establish confidence in implementation. 5. Pay salaries to meet the needs of different levels. Maslow's hierarchy of needs theory holds that needs are inherent, innate and subconscious, and they develop in order, and the satisfied needs are no longer incentives. Only when the low-level needs are met can employees consider the higher-level needs. Enterprises should understand the needs of employees in a targeted manner when designing salary, and meet the reasonable needs of employees in time. Therefore, it is suitable for the economic compensation of employees with lower income; For senior employees, economic compensation and non-economic compensation should be combined. In addition, the organic combination of economic reward and non-economic reward is helpful to shorten the time interval of regular reward, keep the timeliness of incentive and enhance the incentive effect. Salary management is not concerned with money directly, but with how to use the incentive function of salary correctly. Even if the absolute amount of salary is equal, the incentive effect and performance brought by different payment methods may be very different. Sixth, the payment of wages should be transparent. Whether the salary is confidential or open is a dilemma for modern enterprises, which stems from employees' high sensitivity to the fairness of salary. It is not advisable for enterprises to adopt the absolute salary disclosure system or the absolute confidentiality system. Enterprises must weigh the two and grasp the "degree" of confidentiality and openness, because the grasp of the scale directly affects the incentive effect. Enterprises that implement the secret salary system may prohibit employees from knowing each other's salary level and salary structure, but this does not affect the communication of salary information. Employees can always obtain incomplete salary information of other employees through some channels, and judge the fairness of salary, which is very likely to be distorted, and distorted judgment will inevitably bring negative emotions to employees. The same completely open salary does not allow employees to make a correct judgment on the fairness of salary. Therefore, enterprises should selectively transmit some information contained in salary to express the idea that enterprises admire and encourage. Improve the working structure. When we talk about remuneration, many people's first reaction is money. In fact, an employee will work for many reasons, not just for money. Getting a sense of accomplishment at work should also be part of the reward. Recognizing this, the first thing a company should do is to improve its work structure. Only a good job can have a satisfied employee. What is a good job? Work is meaningful and complete for employees. If the company forces employees to do jobs that they are not interested in, or makes them feel that their decision-making power is insufficient, then even if there is a good salary, employees will not be satisfied, not to mention the salary is lower than the market average. Establish a value-oriented salary management system. This is mainly reflected in two aspects, one is to determine the basic salary by measuring the value of employees' positions by value, and the other is to measure the performance of employees within the specified time by value. This part can be called bonus or performance pay. Many enterprises only determine employees' salaries according to their academic qualifications and work experience, which can easily lead to formalism at work and dampen the enthusiasm of some employees. Because education and work experience cannot guarantee that employees can create value for the enterprise. Self-help wages. This practice is very popular abroad now. Its core idea is to treat employees as customers. Different employees have different requirements for work remuneration due to personal conditions, family environment and other factors, and enterprises should try their best to meet the different needs of different employees. Therefore, enterprises divide different salary structures under the guidance of salary, and set multiple options under the same salary category, so that employees can choose according to their actual needs. This approach is to consider the needs of employees and let employees decide their own salary structure, which will enhance their sense of participation and correspondingly improve their job satisfaction. For related articles, please click: How do enterprises formulate salary incentive system? How do enterprises conduct salary surveys? How to design salary-salary budget? Contradiction between total compensation control and incentive.