Procedures or steps of salary system design

Step 1: Analyze positions and clarify functions.

To determine the salary, we must first analyze the position. Therefore, it is necessary to combine the business objectives of the enterprise, carry out job analysis, clarify departmental functions and job relationships, and then write job descriptions.

Step 2: Evaluate and grade the position.

The evaluation of positions is mainly to solve the problem of fairness. There are many methods of job evaluation, including scoring comparison method, Hay model and CRG model. Scientific post evaluation system is a comprehensive evaluation of various factors, and then the salary level is obtained. Generally speaking, the position level of SMEs is 1 1~ 15.

Step 3: Pay survey to understand the market.

When designing salary, we should refer to the salary level in the labor market, so it is very important to conduct salary survey. The respondents are usually competitors or companies similar to themselves, with the focus on recruitment sources and the employee's departure. The survey data include: post salary data, salary structure comparison, bonus and welfare status, etc.

Step 4: Position salary and determine salary level.

The orientation of salary is to determine the salary level of enterprises. Generally speaking, the strategy of guiding or following can be adopted. There is a special term called 25P, 50P, 75P, which is to conduct a salary survey on 100 companies, ranking them according to the salary level from low to high, with 25 representing the median, 50 representing the median and 75 representing the median. Generally speaking, the median is more appropriate.

Step 5: Design the salary.

After the above work is ready, you can start salary design. There are usually three factors to consider: position level, personal ability and experience, and personal performance. The corresponding salaries are: post salary, skill salary and performance salary.

Step 6: Implement and improve the salary system.

In order to effectively implement the salary system, we should do a good job in employee training, publicity and communication, and try our best to satisfy employees. In order to make the salary system always applicable to enterprises, it needs to be revised and improved.