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Analysis of salary management issues in enterprise human resources management

Abstract: Salary management is one of the core contents of human resources management and even the entire enterprise management. It not only involves the economic accounting and benefits of the enterprise, but also Moreover, the core issue of salary management that is closely related to the vital interests of employees is how to scientifically and reasonably determine the salary differences of employees based on their contributions to the organization and formulate a fair, open and just salary system. A reasonable and effective salary system can not only stimulate employees' enthusiasm and initiative, encourage employees to strive to achieve corporate goals and improve corporate efficiency, but also attract and retain a team of good quality and competitive employees in the knowledge economy with increasingly fierce competition for talents. Workforce.

Keywords: Analysis of Salary Management Issues

1. The main problems that enterprises have in salary management (1) Internal imbalance of salary Internal imbalance is manifested as an excessive salary gap Or too small. Research has found that people care about the extent of salary differences and even the absolute level of salary. Under the conditions of market economy, "egalitarianism" and "big pot rice" have no place. More people demand distribution according to work and more work, so that true fairness can be reflected. At the same time, differences in personal positions, abilities and work performance will inevitably lead to differences in income. Only fair and reasonable differences can make the salary play its role of encouraging advancement and being accepted by most people. Too big or too small can cause problems. Employees are dissatisfied. The excessive gap refers to the salary difference between outstanding employees and ordinary employees. The difference in Daewoo's work itself may also be the large difference between employees doing the same job. An excessive difference in the former will help and stabilize outstanding employees, while an excessive difference in the latter will cause dissatisfaction among employees. A difference that is too small means that the salary difference between outstanding employees and ordinary employees is smaller than the difference in the work itself. It can cause dissatisfaction among good employees. (2) Salary level and external market imbalance. External imbalance manifests itself as high or low. Salary level involves an external fairness issue, that is, employees compare their income in the company with the average salary level of similar jobs in society. The process and the result of the comparison will affect his enthusiasm for future work and even whether he will stay or leave. As China's market economic system becomes more and more perfect, talent, as one of the resource elements of the labor market, must be allocated in line with the requirements of the law of value. The flow of talent to companies with high prices will become a common phenomenon. (3) The single distribution method leads to insufficient long-term incentives. This is mainly for the core talents of the enterprise, including senior executives, engineers who master key technologies, and R&D personnel. From the current point of view, the salary incentives of most enterprises in our country mainly rely on bonuses and performance wages, and use less methods of participating in the distribution of capital factors, labor factors, management factors and technical factors. Especially for labor factors, management factors, and Not enough attention is paid to the participation of technical elements in the distribution. Although many companies have designed some measures to involve human capital in the distribution, the proportion is very small or due to the unreasonable design, there is almost no incentive effect or only a small effect. . Almost all companies have this problem. The guidance of short-term rewards makes short-term behavior inevitable, and the damage to long-term benefits is natural. (4) Decoupling performance pay from performance This is also a serious and common problem in enterprises today. There are two main manifestations:

1. The performance-based pay gap is very small and does not reflect individual efforts and contributions.

2. As a floating salary, bonuses have become a relatively stable or unchanging amount, and more reflect the promotion and seniority. They float without moving, making bonuses a formalism and forming a new trend. The round of egalitarianism has lost the meaning of its establishment.

2. Cause analysis (1) From the perspective of the entire human resources system 1. Enterprises do not have a complete human resources management system. In some small-scale enterprises with irregular management, they are subject to the subjective influence of corporate culture or senior executives and do not pay attention to compensation. In management, employee compensation is only regarded as a financial expenditure, and simple regulations and distribution are not management. Another situation is that although salary is attached great importance to, other links are missing. To make employee salary management scientific, reasonable, and effective, it must be based on the effective operation of multiple links in the enterprise's human resources management system, and there is a lack of altruistic links. , there is no effective employee compensation management at all, or it cannot be carried out at all. At this point, the problems that companies tend to have are: neglecting job analysis and job evaluation, or absence of performance appraisal, causing salary to lose its fair and reasonable basis. 2. The human resources management system, salary and related links are unreasonable and complete. Human resources management system, but some unreasonable aspects related to salary and compensation are more common in current enterprises:

(1) The job evaluation system is not standardized. This is manifested in: a. Many companies’ evaluation of positions often falls into the evaluation of the people specifically engaged in the position, rather than the evaluation of the position. bThe establishment of evaluation standards and various indicators often does not reflect job responsibilities. The salary for position c does not accurately reflect the value of the position. d. The assessment object becomes the employee, not the employee's work performance.

(2) The assessment standards are unclear or irregular. For example, assessment indicators cannot be quantified, are out of touch with the position, or are too complex to be measured.

(3) The assessment process is not standardized and is affected by the subjective factors of the assessors. Common ones include: partiality to cover up the whole; self-similarity effect: favoring people who are similar to oneself in a certain aspect and giving a more favorable evaluation; recency effect: events that happened not long ago have a profound impact, and people think this will be more favorable. It is a representative and typical event or behavior, which is regarded as the general characteristics of the person being evaluated, and older events are forgotten or ignored. Most of the defects in the personnel management system come from the subjectivity and one-sidedness of the assessment, and the results will inevitably affect the credibility and validity of the performance assessment. It cannot reflect fairness, openness and fairness.

(4) There is no timely communication and feedback after the assessment. Failure to promptly acknowledge and correct employees' achievements and mistakes at work leads to employee dissatisfaction. (2) From the perspective of the salary system itself: 1. The salary system is unreasonable. The salary system refers to a system in which the company divides various types of salaries into grades and determines the salary standards according to factors such as the complexity of labor, degree of responsibility, and labor conditions. Here it mainly refers to the basis for salary formulation and the development of salary for various personnel. method. In reality, the main manifestations of the unreasonableness of the salary system are:

(1) The systematicness of the salary system is low. The current salary system of an enterprise is often formed through large or small new capital reforms.

(2) The direction of the salary system is wrong. The compensation system involves a directional issue, that is, what kind of behavior the enterprise encourages and what kind of performance it focuses on rewarding. It will guide employee behavior. Affected by traditional concepts, many Chinese companies attach great importance to people and people, and tend to favor seniority when awarding bonuses. The result of this is that new employees, especially newly joined senior talents, are not paid enough attention. Loss of enthusiasm for work or even resignation. 2. The salary system structure design is unreasonable. The salary system mainly refers to the composition of salary. The vast majority of enterprises are not reasonable enough in their structural design, as shown in the following:

(1) The fixed salary ratio is too high, which makes the income gap narrow and cannot reflect fairness and efficiency.

(2) Variable pay floats but becomes a fixed value, making incentives ineffective.

(3) The salary structure model of all employees is the same and is not highly targeted.

(4) The criteria for obtaining performance pay involve too many levels and seniority. Make new employees lose confidence and enthusiasm for work.

(5) The proportion of long-term compensation is very small, resulting in insufficient long-term incentives. (3) From the perspective of system operation: 1. The compensation strategy is inconsistent with the company's own characteristics.

Secondly, the basis for job evaluation and various indicators must be clearly defined to avoid causing employees' distrust and suspicion of favoritism and discrimination, so as to improve employees' acceptability of the gap between positions and make them accept the salary gap. Psychological endurance is also enhanced. Thirdly, the evaluation process should be made as transparent as possible. An evaluation committee can be introduced to appropriately involve employees in discussions on relevant policies, so that employees can actively participate in job evaluation work, so as to better reflect the interests of employees and ensure the rights of employees. Finally, the results of the job evaluation should be made public so that employees can identify with the results of the job evaluation. (3) Establish a systematic and fair performance appraisal system to ensure that performance pay is linked to performance appraisal. Developing a complete performance appraisal system is an important step in linking salary and performance to achieve internal fairness. To establish a systematic and fair performance appraisal system, we must ensure that it is fair and effective. Fairness is one of the important components in achieving the purpose of satisfying and motivating the reward system. For employees who are rewarded through hard work, they must be convinced that rewards corresponding to their efforts will follow. If the company fails to establish credibility, employees' trust in the compensation system will also be damaged, and their work enthusiasm and initiative will be greatly reduced. Effectiveness is the fundamental purpose of establishing a performance appraisal system, which requires companies to do the following:

1. Be able to accurately measure performance;

2. The salary range should be sufficient Large, so as to widen the salary gap between employees and ensure integrity is motivating;

3. Clearly define the relationship between salary and performance, and be able to link the results of performance measurement with the level of the salary structure;

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4. There are opportunities to improve performance;

5. Its managers should be skilled in setting performance standards and operating the evaluation process, and there should be mutual trust between managers and subordinates.

In addition, during the specific operation process of establishing the performance appraisal system, employees should be involved in the formulation of standards, and employees should be involved in the formulation of goals through discussion, communication, etc., so that the performance goals set by the organization can be more effective. Appreciable, fairer, more accepting. In the formulation of standards, the indicators should be clear and quantifiable, but not too complicated, and should reflect the characteristics of the job. Different standards should be set for different positions. The selection of indicators is a key, few but precise indicator set based on the company's functions and the department's strategic support for the company. It can establish a key performance indicator system and combine performance management with employee performance. First, according to the strategic goals of the enterprise, the key driving factors are determined, and then the key driving factors are analyzed and sub-factors are analyzed to determine the key performance indicators of each closed door and the key performance indicators of each position. Indicators must be determined as quantitatively as possible, and those that cannot be quantified must be refined or standardized. We can use numerical values ??to express quantifiable indicators, and degree to non-quantitative indicators, so as to avoid problems such as supervisor bias. Secondly, during the appraisal process, attention should be paid to avoiding the evaluator's subjective factors such as first impression, recency effect, halo effect, etc. Finally, attention should be paid to communication and feedback, and the results of performance appraisal must be applied to the diversified compensation results. During the formulation, remuneration will be determined based on contribution to avoid the assessment becoming a mere formality and in vain. And promptly discover errors in the evaluation and assessment process and correct them in a timely manner. (4) Determine a reasonable salary level through salary surveys and combined with the company's own characteristics. In order to ensure competitive salary provision, the company must consider the salary levels of companies of similar size in the same industry in the region, as well as the market average salary level of the same industry in the region. . To determine reasonable salary levels, companies must conduct salary surveys and collect the latest data. Enterprises can entrust a professional consulting agency to conduct an investigation, and determine the overall salary level of the enterprise based on the analysis of the results and the characteristics of the enterprise itself. Common salary strategies include the following:

1. Market-leading strategy, which is higher than the market average. Generally speaking, high-tech companies in a period of rapid growth should adopt this strategy.

2. The market following strategy, based on the fact that the market average level is equivalent, is suitable for companies with weak salary affordability, not outstanding production and operation characteristics, and unable to pass on too much salary costs.

3. The low-wage strategy, which is lower than the market average, is more suitable for companies with relatively stable operations and harmonious interpersonal relationships, and is conducive to low-cost expansion of the company.

4. High-level and low-level, that is, the salary of senior executives is higher than the average level, while the salary of grassroots employees is lower than the average level. This is conducive to attracting senior management talents and moderately controlling salary costs, which is suitable for Management enterprise.

5. Lower-high and upper-low, that is, the salary of grassroots personnel is higher than the average level, while the salary of management personnel is lower than the average level. It is suitable for companies that have achieved a clear market position and whose products are in the mature stage. (5) Introduce a supervision mechanism and communication mechanism to ensure the effective implementation of the salary management system. The introduction of a supervision mechanism can effectively avoid unreasonable operation of the salary system and reduce human errors. And employee supervision is the best supervision because of its benefits. employees will be very responsible, and salary communication can better play the supervisory role of employees and ensure that a fair salary system is implemented fairly. Pay attention to communicating with employees about salary, so that employees understand the price the company pays for them. In fact, the company's salary system should be transparent. Companies that implement confidential salary systems often have this phenomenon: Strong curiosity makes employees inquire about the salary of colleagues through various channels, causing confidential salaries to become public quickly. Even if a strict confidentiality system is established, it is difficult to prevent this. phenomenon. Since confidential salary cannot maintain confidentiality, it is better to use transparent salary directly. The implementation of salary transparency actually conveys the message to employees: people with high salaries have their own reasons for being high, and people with low salaries also have their shortcomings; salary transparency is actually based on fairness, justice, and On the basis of openness, the specific methods include the following:

1. Let employees participate in the formulation and assessment of salary. When formulating the salary system, in addition to the leaders of each department, there should be a certain number of employee representatives. When approving employees' performance-based remuneration, we can adopt the method of superiors' suggestions and approval at all levels. This can not only avoid over- or under-judgment caused by conflicts or too close relationships between superiors and subordinates, but also allow managers to examine employees from a higher level. The internal fairness of performance pay reduces the current neglect of the internal balance of the organization's overall pay.

2. Publish documents to explain the salary setting process to employees in detail. The salary system formulated after the evaluation must be described in detail to prevent employees from misunderstandings as much as possible.

3. Establish an employee mailbox to answer employee questions about salary and handle employee complaints at any time. (6) Pay attention to the skills of salary payment. When paying salary, you should pay attention to meeting the level of needs. Although we currently say that work is not just for salary, salary, as a guarantee condition for meeting low-level needs, is still a guarantee for most people. Hard truth. According to the well-known Maslow's hierarchy of needs theory, human needs are hierarchical. Only after low-level needs are met, higher-level needs can be considered. Salary can meet people's needs at different levels. It not only provides employees with food, clothing, housing and transportation, but also develops personal hobbies for employees. It provides conditions for the pursuit of higher-level needs. In addition, salary is also a symbol of achievement. Employees often regard salary as the company's recognition and appreciation of their work. Therefore, in terms of remuneration, economic remuneration should be applied to general employees with lower incomes; and for high-level talents, economic remuneration and non-economic remuneration should be combined. If the salary is higher but there is a lack of training and development opportunities, Still unattractive and motivating. In terms of salary payment time, we should pay wages and bonuses in a timely manner. Appropriately shortening the time for establishing wages will help achieve the best incentive effect. Often, frequent small rewards are more effective than larger ones. Reduce regular and regular rewards and increase irregular rewards so that employees can have more unexpected surprises and enhance the motivational effect.

References: [1] Liu Junsheng. Practical Manual of Salary Management [M]. Beijing: Machinery Industry Press, 2005 [2] Ding Xiangyang. Salary Issues and Salary Design in Chinese Enterprises - Professor Zeng Xiangquan in Report at the "4th Sino-Japanese International Symposium on Human Resources Development" [J]. China Talent, 2003, (2).

[3] Liu Xin. Salary Management (Second Edition) [ M]. Beijing: Renmin University of China Press, 2007