How to maximize the use of salary incentives

The competition and challenges faced by enterprises are self-evident, and corporate salary is a lever for the survival and development of the entire company. Motivate and attract talents, mobilize the creativity and vitality of employees in various positions, and maximize the advantages of human resources. Based on this, this article conducts preliminary research and exploration on the salary incentive mechanism of Chinese enterprises, in order to maximize the optimization of the salary incentive system, bring out the best potential of employees, and create greater value for the enterprise.

1. The meaning of salary

In economics, salary refers to the sum of all labor rewards that workers receive from their labor. Enterprise salary in the modern sense refers to a kind of labor remuneration paid by the enterprise to employees in legal currency and legal form on a regular or irregular basis in order to achieve corporate goals [1]. Literally understood, salary includes the meaning of salary and remuneration. , it is the return of enterprises to employees for their services and contributions, and can be defined as direct salary and indirect salary. Direct remuneration includes: (1) salary (2) bonus (3) annual salary. Indirect compensation can include (1) benefits (2) bonuses (3) equity. Among them, welfare is a kind of supplementary compensation to wages or bonuses that are difficult to include and accurately reflect the situation, and can be paid directly without monetary form. Such as paid holidays, medical care, safety protection, insurance, etc.

2. The meaning and principle of motivation

In short, motivation is to mobilize people's enthusiasm for work and give full play to their potential abilities. From an organizational perspective, managers motivating their subordinates means motivating and encouraging their subordinates to perform proactive and required work behaviors toward the goals expected by the organization [2]. Incentive is originally a psychological concept, indicating a certain How and what causes this kind of motivation, and what are the psychological activities that occur when people move toward the established goal. Therefore, motivation can be understood as a kind of spiritual force that promotes and promotes, and can play a behavioral guiding role to a certain extent. Some experts and scholars believe that motivation is when the subject uses some means or methods to stimulate the object to achieve the desired goal. In some large and medium-sized enterprises, the goal of motivation is to mobilize the enthusiasm and creativity of employees in various positions to achieve the purpose of corporate profitability.

The principle of motivation can be discussed from four levels: Behavioral science theory believes that "performance = ability - degree of motivation. Under the condition that ability remains unchanged, the size of work performance depends to a large extent. It depends on the degree of motivation received. In other words, ability is the foundation, motivation is the driving force, and the most important thing is the enthusiasm and initiative of the object; from the perspective of need hierarchy theory, needs are the key to human survival and development. Necessary conditions, which refer to someone's desire for a goal to motivate people's behavior, are the source and internal driving force of personality positivity.

The necessity and principles of salary incentives: Incentives are the core of management. Salary incentives are the most important and most effective means of motivation in enterprises. One of the purposes of salary incentives is to effectively increase employees' enthusiasm for work, and on this basis, they can promote the improvement of efficiency and ultimately promote the development of the enterprise. While the company is making profits, employees can also improve their abilities and realize their self-worth. The following principles must be followed when implementing salary incentives:

(1) Principle of fairness

Fairness does not mean that everyone eats from the same pot. This kind of fairness is based on the consistency of employees' positions, levels, and abilities. The other is vertical fairness, which is based on the consideration of the development process. , because an employee's development in the enterprise is process-oriented and continuous, his salary will continue to increase over time.

(2) Competitive principle

< p>This principle requires that the company's salary system must be competitive with other companies, so that it can attract and retain talents, so that talents can contribute to the development of the company.

(3 ) Incentive principle.

Effective incentives require a combination of high salary and scientific motivation, rather than relying solely on higher salary to motivate employees to work. Scientific salary incentives must be based on stimulating employees' abilities and combining them with others. On the basis of close connection with work performance.

(4) Economic principle

This principle requires that salary incentives should be within the scope of the enterprise's affordability, profit accumulation, and cost control. rather than blindly advocating high salaries.

Therefore, when the competitive principle and the incentive principle are applied to the salary incentive system, they must be restricted by economic principles.