The New Motive Force of Enterprise Development

The New Motive Force of Enterprise Development

In today's labor market, employees will pay more attention to the maintenance of their labor rights and interests, and gradually have more and clearer understanding of their career planning and design. Salary is no longer the only factor that employees are willing to stay in the enterprise for a long time and concentrate on their work. I have compiled "New Motives for Enterprise Development" for you, hoping to help you:

The new economic situation faced by enterprises

From the perspective of salary, Chinese enterprises are facing a severe development test. Dr. Fei Zhu pointed out that at present, many enterprises are facing the economic situation of "domestic troubles and foreign invasion". There are two main reasons for the so-called "foreign invasion": First, China is a big manufacturing country and a big exporter of products, and the US subprime mortgage crisis has seriously affected China's product exports; Secondly, in recent years, China products are facing the challenge of image problems in the international arena. International doubts about China's food safety and China's toy quality have greatly influenced the international demand for China products. The so-called "internal worry" mainly refers to inflation, soaring CPI index, rising living costs of employees, increasingly strong demands for salary increase of employees, and rising prices of major raw materials such as steel, which has led to a substantial increase in production costs of some enterprises; At the same time, the adjustment of the national export tax rebate policy has greatly reduced the profit space of many enterprises. These factors make enterprises face more severe challenges in salary management. Enterprises have to pay more attention to salary, and the effective management of salary and the realization of salary function have become one of the key factors for enterprises to stand on the market.

Three core contents of formulating new salary strategy

Dr. Fei Zhu pointed out that the traditional salary range includes: salary (salary, bonus)+welfare (social security, training, paid vacation, etc. ), but today's salary range has derived the concept of full salary. According to the research report of American Compensation Association in 2006, total compensation should include five aspects: first, basic compensation and floating compensation; The second is welfare; The third is performance and recognition; The fourth is to balance work and life; Fifth, personal development and career opportunities, including learning opportunities, guidance from senior experts and tutors, and personal development opportunities.

After the promulgation of Labor Contract Law, how to design enterprise salary? What is the basis? According to Dr. Fei Zhu, abiding by the provisions of the Labor Contract Law and ensuring employees' legitimate and normal income are the basic principles for enterprises to formulate salary strategies. If an enterprise wants to seek development, it must first be responsible for its employees, so as to be responsible for its customers and the future of the enterprise. At present, employees' legal awareness is getting stronger and stronger. If an enterprise manages employees in a way that violates the law, employees will inevitably be "morally alienated", which is also very unfavorable to the long-term development of the enterprise. Therefore, the formulation of enterprise compensation strategy can refer to the following three points.

Firstly, the concept of "total compensation" is introduced into the enterprise compensation system. When publicizing the salary mechanism of an enterprise, we should not only talk to employees about how much cash they will give him or her, but also talk about other aspects, such as employees' personal development and career opportunities, performance recognition plans established within the enterprise, and various measures taken by the enterprise to balance employees' work-life conflicts. These measures include flexible working hours set by enterprises, improvement of working environment, attention paid by enterprises to employees' health, and concern for employees' families. These measures have a strong incentive effect, which can make employees feel a sense of belonging and dependence on the enterprise and improve their loyalty and enthusiasm for work.

Secondly, establish the employer brand image of the enterprise. The employer brand can play two key roles. First, improve the attractiveness of enterprises in the talent market and increase the chances of attracting outstanding and suitable talents. Second, form a high brand loyalty among employees in order to motivate and retain employees. For example, Dr. Fei Zhu said that McKinsey & Company, an internationally renowned strategic consulting company, advocated the employment values of "elite employment". They claim that the people who work with employees are all elites in the workplace, the customers they contact are all high-end customers, and the training they receive is the top training courses in the industry, which has a strong boosting effect on employees' future promotion, so this employer culture is very attractive to job seekers and incumbents who yearn for this atmosphere.

Third, introduce informal organizations. In enterprises, the existence of informal organizations has advantages and disadvantages. The disadvantage is that it is easy to spread gossip among small groups and even condone the occurrence of collective job-hopping incidents. However, if enterprises can be well guided, informal organizations can improve employees' dependence on enterprises. Dr. Fei Zhu pointed out that from the current situation, employees' organizational loyalty is declining, but their professional loyalty and team loyalty are on the rise. When employees change jobs, they will consider whether there is such a harmonious team in the new environment, which is also the psychological cost that employees consider when they change jobs. For example, employees like to climb mountains, and enterprises can set up mountaineering teams at some cost and often organize employees to participate. After a long time, employees have feelings for the team and will feel grateful and highly recognized for the enterprise.

Two foundations of employee's salary increase

Should employees' wages be adjusted in time when prices are rising? If the enterprise decides to adjust the employee's salary, what kind of implementation procedure should it have? What part of employee salary adjustment?

Dr. Fei Zhu said that enterprises should establish a normal salary adjustment mechanism for employees. Under the current economic situation, this mechanism is more urgent. An employee's monthly income last year was 65438+0,000 yuan, and this year's monthly income is 1 65438+0,000 yuan. Although the nominal wage rate is rising, the real wage rate is falling. This year's 65438+0,65438+0,000 yuan is not as high as last year's 1 0,000 yuan.

So, how should companies raise their salaries? What is the basis? Dr Fei Zhu pointed out that enterprises should establish a mature salary increase mechanism. There are two main bases for adjustment: one is to look at the CPI index, and the other is to look at the economic benefits of enterprises. Although there are many defects in China's current CPI index, there is still a lack of a better economic index that can reflect the cost of living of employees as a reference for salary adjustment, so let's take CPI index as the main basis. On the other hand, it can't be said that all enterprises must give their employees a raise when the CPI rises, but also according to the benefits of enterprises. Different enterprises have different methods of linking economic benefits, some of which are linked to the operating income of enterprises, and some are linked to the operating profit of enterprises. Obviously, under the current economic situation of rising production costs, the operating profit rate index should be the main basis to measure whether the salary is raised or not and the salary adjustment ratio.

Personal Salary and Welfare in China Water Industry

According to the information provided by the respondents, the employees of water enterprises enjoy social insurance, housing accumulation fund and other basic benefits, all of which are above 80%, and the proportion of respondents who enjoy social insurance benefits is 92%. More than 50% of the respondents enjoy meals and holiday expenses, and nearly half of the respondents enjoy paid annual leave and communication subsidies. More than 30% of the respondents enjoy transportation subsidies and in-kind gifts; More than 20% of the respondents enjoy housing subsidies and attendance rewards; Nearly 20% of the respondents have subsidies such as supplementary commercial insurance; There are also 8.6% respondents who enjoy travel subsidies.

Current Situation and Problems of Salary and Welfare in China Water Industry

It is a key stage for China's water conservancy industry to leap from functional level 2 to functional level 3. When the water industry is upgraded from the second level to the third level, the salaries and benefits of employees will be significantly improved, which also means that water companies are willing to pay higher competitive wages to attract and retain personnel above the third level, and the labor costs of enterprises will also increase accordingly.

China's water industry is in a period of rapid development and integration, and the structural contradiction between supply and demand is inevitable. On the one hand, enterprises need professionals with high technical ability or skills, as well as high-level management talents; On the other hand, the supply of high-level talents in the whole industry will not increase on a large scale in the short term. In the short term, the contradiction between the rapid growth of enterprise employment demand and the lag of talent supply is more prominent.

Because the supply of talents is not in place, enterprises may dig corners with high salaries for fast-growing business. This phenomenon is not lacking in the water industry. In addition, the high salary offered by enterprises is often far higher than the actual payment ability of enterprises, which intensifies the cost pressure of enterprises to some extent. In the talent management of water industry in China, the contradiction between talent supply and demand, salary rationality and enterprise cost is more prominent.

Development Trend of Salary and Welfare in China Water Industry

With the intensification of competition, the increase of high-level talents and the clarity of industry salary information, the supply and demand structure of talents in the water industry will tend to be rationalized, and the talent ability, salary and enterprise cost will tend to be rationalized.

Hot jobs will appear with the development of water market. In the field of reclaimed water, the demand for talents in cities such as Beijing and Shanghai is expected to increase; In the field of sludge, Guangdong, Jiangsu, Liaoning and other provinces are expected to become talent gathering places in recent years, while Henan, Hubei, Shandong, Hebei and other provinces with leading industrial wastewater treatment will also be places where talent demand is concentrated. Take the position of director of sewage plant as an example. If the sewage treatment plan needs to be completed, China will build nearly 40,000 sewage treatment plants in the next few years, which means there are about 40,000 factory directors.

Expect the third party to promote the establishment of a reasonable salary system. China Water Network and E20 Environmental Industry Club members initiated the establishment of "China Environmental Industry Human Resources Alliance"; Relying on the advantages of the platform, China Water Network plans to launch the China Water Industry Salary Database in 20xx.

General principles of wage calculation

First, the relationship between remuneration and remuneration:

Compared with internal rewards, employees and enterprises are more inclined to pay attention to external rewards, especially salary.

② Employees' complaints about salary are not necessarily caused by salary.

(3) Internal reward is not necessarily related to the reduction of enterprise salary cost.

Second, the composition of total salary (basic salary, variable salary, indirect salary or benefits and services)

Basic salary:

(1) refers to the relatively stable economic remuneration paid by the organization to employees according to the work undertaken or completed by employees or their skills or ability to complete the work, which provides employees with basic living security and a stable source of income, and is the main basis for determining variable remuneration.

② basis for change:

A. changes in the overall cost of living or inflation;

B. the basic salary of homogeneous labor in the market;

Changes in knowledge, experience and skills of employees and the resulting changes in performance.

③ Performance-based salary increase is a basic salary increase method for employees' satisfactory work behavior and performance in the past.

2. Variable salary:

(1) The economic reward in the salary system is directly linked to performance, sometimes called floating salary or bonus.

Objective: To establish a direct relationship between performance and salary.

③ Short-term and long-term variable salary: The short-term is generally based on very specific performance goals, while the long-term purpose is to encourage employees to strive to achieve cross-year or multi-year performance goals.

3. Indirect remuneration or benefits and services:

① Generally, it includes non-working time remuneration, services provided for employees and their families, health care, life insurance and statutory and enterprise supplementary pensions.

② Special value:

A. If the salary paid in cash is reduced, the enterprise can avoid tax reasonably;

B benefits provide protection for employees' future retirement and some accidents;

C welfare is also a means to adjust the purchasing power of employees, so that employees can buy the products they need at a lower cost.

4. The difference between performance salary increase and variable salary:

① Performance salary increase is a reward for employees' past performance and outstanding performance. Based on the basic salary of employees, its percentage depends on the business performance of the enterprise in that year and the personal performance appraisal level of employees. Therefore, it is not necessary or possible to negotiate or communicate with employees in advance; Variable salary or bonus that affects employees' future career. For the purpose of performance, the bonus amount, the proportion of income sharing and the date of equity grant are all agreed in advance.

(2) Once the performance salary increase is determined, it will be permanently increased to the basic salary, and the salary increase will continue on the basis of the first year in the second year, which has a cumulative effect; Floating salary only applies to a performance cycle agreed between employees and enterprises.

Third, the main content of salary management

1. Definition: refers to the process by which an organization determines the total amount, salary structure and salary form that all employees should receive for their services.

2. Three objectives:

(1) Fairness (employees' views on the fairness and impartiality of management systems and processes)

② Effectiveness (the degree to which the salary management system can help the organization achieve the predetermined business objectives)

(3) Legitimacy (whether the enterprise salary management system and process comply with relevant national laws and regulations)

3. Requirements:

① external fairness or external competitiveness of salary

② Internal fairness or consistency of salary.

(3) the fairness of performance pay.

④ Fairness of salary management process.

Four, some important decisions of salary management

Salary system decision:

① Main tasks: To make clear what is the basis for enterprises to determine employees' basic salary.

② Three general salary systems:

Post salary system (based on work and position, based on the value of employees' work, the most widely used).

B skill wage system and ability wage system (based on people's quality, respectively according to employees' own skill level and their competence or comprehensive qualifications).

2. Salary level decision:

① Salary level refers to the average salary level of all posts, departments and the whole enterprise, which determines the external competitiveness of enterprise salary.

② Influencing factors: the salary level paid by competitors in the same industry or region, the payment ability and salary strategy of enterprises, the social cost of living index, and the salary policy of trade unions in the case of collective bargaining.

3. Salary structure decision:

(1) Salary structure refers to the number of basic salary levels in a single organization and the salary level gap between two adjacent salary levels.

② The salary structure has a great influence on employees' turnover rate and work enthusiasm.

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