How to design the company's salary system

The focus of salary design lies in "internal fairness and external competition", and establishing such a salary system is an urgent task in human resource management of many companies in China at present. Designing a reasonable and scientific salary system and salary system generally goes through the following steps:

1, position analysis. Job analysis is the basis of determining salary. Combined with the company's business objectives, the company's management should clarify the functions and post relationships of departments on the basis of business analysis and personnel analysis, and the human resources department and the heads of various departments should cooperate in writing job descriptions.

2. Job evaluation. Job evaluation (or job evaluation) focuses on solving the internal fairness of salary, that is, realizing the internal balance of enterprises. There are two kinds of imbalance in enterprises: ① the gap is too large. Excessive gap means that the salary difference between excellent employees and ordinary employees is greater than the difference in the work itself, or there may be great differences between employees who do the same job. The former helps to stabilize excellent employees, while the latter will cause employees' dissatisfaction. ② The gap is too small. The difference is too small, which means that the salary difference between excellent employees and ordinary employees is smaller than the difference of the work itself. Will cause dissatisfaction among excellent employees. When the internal balance is appropriate, employees can achieve normal work efficiency, and when the internal balance is inappropriate, it will greatly reduce employees' work efficiency. The job evaluation in the salary system is just to solve the problem of unbalanced internal balance of enterprises.

The first job evaluation is to compare the relative importance of each position in the enterprise and get the ranking order of the positions; The second is to establish a unified post evaluation standard for salary survey, so as to eliminate the difference in post difficulty caused by different professional titles among different companies, or even if the professional titles are the same, the actual post requirements and work contents are different, so as to make different posts comparable and lay the foundation for wage fairness. Job evaluation is the natural result of job analysis and also based on job description. The basic procedure of job evaluation is to compare the contents of each job. In addition, the author thinks it is necessary to point out that the scientific post evaluation system obtains the salary level through comprehensive evaluation of various factors, rather than simply linking with the post. For example, the senior engineer of R&D is not necessarily lower than the manager of R&D technology department. The former focuses on technical difficulty and innovation ability, while the latter focuses on governance difficulty and comprehensive ability, both of which have their own strengths. In addition, there is a trend in the world, that is, the position level in enterprises is gradually decreasing, and the wage gap is getting bigger and bigger.

3. Salary survey. Salary survey focuses on solving the external competitiveness of salary, and enterprises need to refer to the salary level of the labor market when determining the salary level of one or more positions. The company can entrust a professional consulting company to conduct this survey. The object of salary survey, it is best to choose a company that has a competitive relationship with itself or a similar company in the same industry, focusing on the direction of employee turnover and recruitment sources. The data of salary survey should include annual salary growth, comparison of different salary structures, salary data of different positions and levels, bonus and welfare status, long-term incentive measures and future salary development trend analysis. Only by using the same standards for job evaluation and providing real salary data can the accuracy of salary survey be guaranteed. Most of the data published by newspapers and websites contain random sampling components, and their accuracy is doubtful. Even the statistical data of the national labor department can not replace the salary survey as the basis for salary determination. In addition, it should be noted that due to the frequent turnover of personnel in some special industries, we can use recruitment methods and job-hopping opportunities to understand the salary level of competitors, but we should prevent generalizations. The result of salary survey is to reflect the salary level of a company compared with the same industry according to the survey data, so as to determine the salary level of a position in the company.

4. Salary positioning. After analyzing the salary data of the same industry, what needs to be done is to choose different salary levels according to the enterprise situation. There are many factors that affect the company's salary level. From the outside of the company, national macro-economy, inflation, industry characteristics and industry competition, talent supply and even changes in foreign currency exchange rate all have different degrees of influence on salary positioning and wage growth. Within the company, the key factors that determine the salary level are the value of work, the company's profitability and ability to pay, and the quality requirements of personnel. The stage of enterprise development, talent scarcity, recruitment difficulty, company's market brand and comprehensive strength are also important influencing factors.

Similar to product positioning, enterprises can choose to follow the strategy or lead the strategy in salary positioning. In real life, the best in salary is not necessarily the company with the loudest brand, because the company with the loudest brand can find the best talents by virtue of its comprehensive advantages without spending the highest salary. It is often those rising stars with deep pockets who tend to adopt a high-paying strategy. Most of them are in the early stage of entrepreneurship or in the period of rapid rise. Investors are willing to buy time with money, hoping to quickly narrow the gap with giant companies by digging first-class talents.

5. Salary structure design. After salary positioning, enterprises can determine a reasonable salary structure according to their own actual situation. Salary structure, also known as salary composition, is about the components of salary and the proportion of each factor in the total. The elements of salary mainly include basic salary, incentive salary, allowance, welfare and service, floating salary and so on. Due to the differences in labor characteristics, work nature, work tasks and traditional salary payment habits, different countries and enterprises have different salary structures. In different periods, with the development of productivity, the change of economic governance system and the change of production or work needs, the salary structure will be different. For example, many multinational companies often consider three factors when determining the salary of their personnel: first, their position level; Second, personal skills and qualifications; The third is personal performance; Corresponding to the salary structure are post salary, skill salary and performance salary. Others consider the first two together as the basis for determining a person's basic salary. Post salary is the evaluation result obtained through the analysis and evaluation of posts, and it is the main determinant of a person's salary. Post salary is an interval, not a point. Enterprises can select some data from the salary survey as the midpoint of this interval, and then determine the upper and lower limits of each position level according to this midpoint. Different employees in the same position have different contributions to the company due to differences in skills, experience, resource possession, work efficiency and historical contribution. (Due to the limitations of performance appraisal, this contribution cannot be fully quantified), so the skill salary is different. Therefore, the basic salary of employees in the same grade may be different. As mentioned above, in the same position level, a range of upper and lower salary changes is designed according to the midpoint of position salary to reflect the difference of skill salary. This increases the flexibility of salary changes, so that employees can gradually improve their salary level within the same post level with the improvement of skills and experience without changing their posts. Performance pay is a reward for employees to achieve enterprise goals, that is, pay more attention to employees' work performance, which is related to the economic value created by employees for the enterprise. Performance pay can be short-term, such as sales bonus, project floating bonus, annual bonus, or long-term, such as stock options. The determination of this part of salary is closely related to the company's performance appraisal system. Combined, it is necessary to evaluate the position to determine the salary of the position; To determine the skill salary, it needs to be evaluated according to the different skills and new knowledge that employees have mastered; To determine performance pay, it is necessary to evaluate work performance; To determine the company's overall salary level, it is necessary to evaluate the company's profitability and ability to pay. Every assessment needs a set of procedures and methods. Therefore, the design of salary system is a systematic project. No matter how perfect the salary structure is, there will always be a few people whose salary is lower than the lowest or higher than the highest. This can be corrected in the annual salary. For example, increase the salary increase ratio for the former and reduce or even adjust the latter.

6. Implementation and revision of salary system. When determining the salary adjustment ratio, it is necessary to accurately budget the overall salary level. At present, most enterprises are doing this calculation by the financial department. However, the financial departments of most enterprises are not clear about the specific salary data and personnel changes. So for the sake of accuracy, this calculation is best done by the human resources department at the same time. Therefore, the human resources department should set up a salary account and design a better calculation method.

During the formulation and implementation of salary system, timely communication, necessary publicity and training are one of the factors to ensure the success of salary reform. Labor remuneration is essentially the result of weighing the cost of human resources and the needs of employees. There is no absolutely fair salary method in the world, only the salary system that employees are satisfied with. The human resources department can fully introduce the basis of the company's salary setting by using the forms of salary system question and answer, employee forum, satisfaction rate survey and internal publications.

In addition, in order to ensure the applicability of the salary system, the company should make provisions for the regular adjustment of salary.