What salary issues does HR need to understand?

The issue of compensation has always been the most sensitive issue in corporate management. In order to ensure that the company has sustainable development and competitiveness, the company must provide higher salaries to employees in key positions. However, some employees will have a psychological imbalance in high-income positions, which will affect their enthusiasm for work.

Reenactment of the scene

"Who are you recruiting? I have never even heard of TOC, how can you ask me to work with you!" the team leader complained.

"There is nothing we can do. The boss said that we need to control the cost of talent. The salary is only this much, and it will be good if we can recruit people. If it works well, you can give it a trial period first. If it doesn't work, just give it a trial period. Fire it." said the anxious recruiting director.

Analyze whether employees are "costs" or "capital"? These are actually two sides of the same coin. From an accounting practice perspective, the amount of wages paid to employees will be included in production costs, sales costs, and management costs respectively. At this time, employees are indeed "costs."

When a company regards human resources as a cost, in order to control costs (because reducing costs is one of the most direct means for a company to make profits), it may hire employees with lower salary requirements and tolerate lower salary requirements for hired employees. work skills and professional qualities. But in order for this employee to achieve the average performance level, the company will pay more time costs and management costs.

2

Every time employees raise their wages, a few key personnel will always leave.

The scene reappears

Little radio: "Do you know? Manager Su was poached by XX Company. I heard that when he left, he went to the human resources department and got angry. He blocked Director Yuan in the office and scolded him, saying that Director Yuan didn’t understand R&D, technology, or management.”

Old Zhao smiled and said: "Old Yuan is taking the blame for the boss. The salary adjustment was the last one made by the boss. He said that it was to take care of other employees, so he only increased it by 15 for Manager Su. At least for this jump of Old Su, Double it. When Lao Su gets better, maybe we will have a chance."

Analysis

Salary adjustment is the most important thing for companies and employees, more important than bonuses. If you don’t transfer it, you will directly face a shortage of manpower and lose a few key talents; if you transfer it too much, you will be under a lot of financial pressure; if you transfer it too little, employees will have grievances and have to shout, “How much do you want to pay?” , how much work have you done?"

It’s easy to handle a small business. The boss takes the initiative himself and negotiates with each other. He will add as much as you want, and everyone is happy. It’s really difficult to handle a large company, and every salary adjustment is like going to war.

The simple rule of salary adjustment can be summarized in two numbers: 20/80. 20 employees create 80% of corporate value. First, make sure that the company adjusts the salary for these 20 employees, and find these 20 employees.

Set a salary increase range that covers the cost of living for 80 of the remaining 80 employees, such as CPI growth rate, GDP growth rate, inflation rate, industry growth rate and other factors that affect labor market prices, select A certain ratio that is most in line with the market is used as the salary increase range.

20 of the remaining 80 employees may not have the opportunity to participate in the salary increase because they include newly hired employees and employees who may be passively resigned at any time. After solving the salary adjustment problem for 80 employees, the company only needs to focus on the important 20.

At this point, half of the problems we talked about have been solved. If talents need to grow, design enough space for growth and don’t skimp on job titles. For example, technicians, don’t just think about engineers, senior engineers, supervisors, directors, managers, etc., learn from Samsung. People tell you directly that if you play well with technology, you can become a lifelong technical expert and earn as much money as a regional VP. .

Talents need value recognition, so we design profit sharing, equity incentives, project incentives, option incentives, use money to trick you, and see where you go. Learn from Huawei, all employees hold virtual shares, and dividends are paid directly at the end of the year. 15 billion, how much money do you need to make to divide it like this?

Can this be done with salary increases? Of course, companies must not think that making a plan every year is just a salary increase. It is too pedantic. We have now entered the information age. The speed of obtaining information is very fast, and the speed of making decisions should also be very fast.

As long as it is beneficial to the development of the enterprise, we will implement it.

3 old employees complained that their wages were lower than those of new employees in the same position

The scene reappeared

“I have been with my boss for more than ten years, and now I only earn 6,000 yuan a month. , the new director got 9,000 yuan when he joined the company. He does the same work as me, but I don’t think he is much better than me, so why should he get so much more than me?” After drinking some wine, Mr. Zhang talked with the company. The old man complained.

Analysis

Due to changes in the labor market, companies will continue to face situations where new employees’ wages are higher than those of older employees. Among them, the rapid increase in salary levels of key technical positions, business positions and senior managers is particularly prominent. This situation cannot be reversed in the short term. The labor market determines the price. To put it bluntly, if you don’t spend so much money, you won’t be able to hire people.

So in the face of such pressure, what adjustments should companies make?

Start with recruitment design: Use an effective structured interview plan to ensure that the hired employees not only meet the job requirements, but also have developable potential and qualities.

Start with job design: make the job richer and more challenging. Tap the potential of employees and allow them to add value to themselves. In this way, raising the salary of old employees will have the advantage of input and output.

Start with education and training: Encourage employees to join academic education programs or participate in professional skills training, which is also an effective way for employees to increase their self-value.

Start with the career development of employees: ensure that employee development is integrated with the development of the enterprise, and reduce the hidden costs caused by talent flow. Provide employees with broad development prospects and encourage employees to learn and improve themselves.

The above methods are all based on the consideration of improving individual labor productivity of employees. Enterprises can also consider how to resolve the pressure of rising wages from the perspectives of equipment updates and production process optimization. In fact, equipment updates and process optimization will all have an impact on the work design of the job. In the end, what we face is still a human problem.

4 When I talk about performance appraisal, I think of deducting wages

The scene reappears

"The human resources department is very perverted. What kind of full-employee performance will be started next quarter?" For assessment, everyone must set aside 30 yuan from their original salary as performance pay. If the performance evaluation fails, I will be deducted 3,000 yuan a month. If 900 yuan is deducted at once, how can I live like this? Counting on his fingers, people are about to collapse.

“Isn’t it said that if you do a good job, there will be rewards if you get a performance appraisal score of 85 or above?” Customer service Xiao Zhang asked puzzledly.

"To put it nicely, it's good if no money is deducted, but you still expect more money. Just dream." Customer service Xiao Cai said.

Analysis

In the past few years, companies have been embarrassed to tell people that they are engaged in management if they do not conduct performance appraisals and performance-based pay. Performance appraisal seems to have become a way to improve corporate management levels and obtain gains. The elixir for higher performance. Many companies have set up severe points deduction items in their performance appraisal systems. Under such propaganda, it is easy to understand that employees are annoyed when they hear performance pay.

Because for employees, their understanding is very simple: the boss’s performance pay is to find ways to deduct our hard-earned money. Let’s not discuss whether the performance appraisal system that deducts wages is useful. It is an obvious mistake to say that companies now use “performance appraisal” as the same as “performance management”. We must clearly understand that: performance management does not equal performance appraisal, and performance appraisal does not equal salary deduction.

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