Incentive mechanism of private enterprises

In the era of knowledge economy, talent is the most active factor in productivity, and enterprise competition is talent competition in the final analysis. Therefore, selecting and retaining high-quality talents is the prerequisite for the survival and development of enterprises. After 20 years of tortuous development, private enterprises in China have gradually realized the importance of talents to enterprise development. Li Zai, Chairman and President of Zhoufang Group, said frankly in Chengdu Business Daily on February 9, 2000/KLOC-0: "Private enterprises are most afraid of talent clearance. When they have no talents, they are afraid that talents will not come, and when talents come, they are afraid that talents will not be retained. Although so many private enterprises are booming, in fact, the easiest thing to fail is that they have not found a fundamental way to attract and retain talents. " Through the comparative analysis of the internal incentive mechanism between private enterprises and state-owned enterprises, the author thinks that the internal incentive mechanism of private enterprises mainly has the characteristics of flexible incentive mechanism but lack of guarantee, which is mainly reflected in the following four aspects in real economic life:

1, the employment mechanism is backward and the form of employment is cronyism.

Since private enterprises have no model to imitate from the beginning, there are only two kinds of organizations that can be copied in China: one is the family, and the other is the Jianghu. Whether it is family or Jianghu, family and loyalty are their ethical principles, which easily leads to cronyism and psychological rejection of foreign employees. Among all enterprises surveyed, the owner's own investment accounts for 82.7% of the total investment, while among all other investors, 16.8% is the owner's relative. This property right structure is the premise of forming family business. For non-family members, it is more common to change them into "quasi-family" and "family-style" members in the form of "family". For neighbors, fellow villagers, classmates and friends, private entrepreneurs implant the concept of "filial piety and care" into their families, treat them as family members, let them abide by the family values of mutual assistance, reciprocity and trust, and turn the relationship between public and private into a personal relationship, thus promoting the development of corporate interests. At the same time, we can also see that some private enterprises are "infighting" seriously, and the awareness of small groups and gangs has seriously weakened the overall combat effectiveness. Modern private enterprises in China have not yet formed a unique corporate culture and strong cohesion, leaving worries for the development of enterprises. At this stage, many private enterprises in China have a point of view on employing people: "Family members are always more trustworthy than outsiders, so we should give them confidence." As a result, many private enterprises are "Laozi as chairman, son as general manager and wife as shopkeeper", which is a form of labor and employment maintained by blood and geographical relationship. Even though the bosses of private enterprises attach importance to the introduction of talents, the core positions of enterprises are occupied by insiders, which makes foreign talents feel that they lack the place to use and thus have the intention to go. In addition, this form of cronyism is easy to form a "home world" in the enterprise, which leads to a lack of recognition of the enterprise and thus leaves the enterprise.

2. The incentive and restraint mechanism is not perfect.

Herzberg, an American psychologist, surveyed the staff of more than 200 industrial and commercial institutions in the United States, and found that the factors that affect people's working conditions and enthusiasm are divided into two categories: health care factors and incentive factors. Health care factors refer to some factors related to working environment or working conditions, and the lack of these factors will make workers dissatisfied with industry and even lead to sabotage and resignation. Incentive factors refer to some factors closely related to the job content, such as the challenge of the job itself, the growth and development of the career, the responsibility and authority of the job, etc. Can make people feel more satisfied with their work, stimulate people's enthusiasm, and make employees feel lasting and full of job satisfaction, greatly. Therefore, Herzberg believes that under various influencing factors, the attraction of the job itself is the most important. At present, some private enterprises in China, especially some high-tech enterprises, can recruit talents with generous material conditions. However, after introducing talents, many private enterprises have not provided them with challenging jobs and relaxed working environment because of problems in their own operating mechanisms. These talents have high achievement needs, and they like to deal with problems independently and engage in moderately challenging jobs. Therefore, if the sense of personal accomplishment is not realized, the brain drain will become inevitable. On the other hand, the reason for the brain drain of private enterprises is that the restraint mechanism for talents has not been effectively established. The private enterprise knows to attract talents or poach talents from other companies with generous treatment such as high salary, but he did not expect that the risk of other competitors poaching talents from him is correspondingly higher. Because people with high salaries may be poached by competitors with higher salaries. For example, there is a private science and technology enterprise, and the newly-employed university graduates automatically leave their jobs before the contract expires. Because there is no corresponding restraint mechanism, there is nothing they can do. The time, energy and money spent on talent training and development are all wasted.

3. The quality of business owners is low, ignoring emotional communication with employees.

The cultural level of private entrepreneurs is constantly improving, and some highly educated young people are increasingly joining the ranks of private enterprises. However, on the whole, the style of private entrepreneurs in China is low and their quality is poor. According to the survey of 200 individual industrial and commercial households and private enterprises in Sichuan Province, the proportion of private entrepreneurs with college education or above is only 14%, secondary school education or above accounts for 80.2%, primary school education accounts for 4.2%, and illiteracy accounts for 1.4%. A survey of 196 private entrepreneurs in Hunan province shows that only 1 1.22% of them have received college education, 42.35% have received junior high school education, 39.80% have received senior high school education and 6.63% have received primary school education. Therefore, among private entrepreneurs in China, people with secondary education account for almost 80%. Moreover, many of these private entrepreneurs are farmers and have a serious sense of small farmers. Due to the limitation of their own quality, they often regard people in enterprises as accessories of machines, and of course they can't hear employees say "no". This arbitrary management method has caused tension between labor and capital. Although private enterprises have hired some professional management talents with high salaries, they rarely adopt the suggestions of these managers in actual operation.

4. Neglect the social welfare of workers.

The establishment of social welfare and security system for employees in private enterprises in China is quite imperfect, and some of them are even blank. Many operators of private enterprises regard social insurance as redundant expenses of enterprises and do not participate in social insurance. According to the survey of insurance companies, more than 92% employees in private enterprises do not participate in any insurance. According to the survey data, in private enterprises, when employees suffer work-related injuries, 30.6% are paid in full, 6.5% are deducted from wages, and 62.9% are deducted from wages and work-related injuries. Two thirds of them are paid by enterprises, 9.8% by enterprises and 23.5% by enterprises themselves. If the employee is unable to work due to illness, 37. 1% will be paid as usual, 18.5% will be deducted, 3 1.5% will be deducted, and 12.9% will not understand the regulations. On the issue of providing for the aged, 27.4% of employees' private enterprises participated in social endowment insurance, while the rest did not. As can be seen from the above statistics, the vast majority of private entrepreneurs only care about their own interests and short-term interests, without considering the interests of employees and the long-term development of enterprises, which makes employees feel insecure about short-term profits, thus causing brain drain and hindering the development of enterprises. If private enterprises want to attract and retain talents, they must attach importance to the establishment of social security system to relieve their employees' worries. Every game has its own rules, and the design of internal incentive mechanism of private enterprises is not imaginary, and there is no law to follow. It is based on Maslow's hierarchy of needs theory, McGregor's X theory and Y theory, Sam's expectation theory and Herzberg's two-factor theory. To sum up, the choice of internal incentive mechanism of private enterprises should follow the following principles:

1, incentives must adhere to the principle of fairness.

Many enterprises deal with problems unfairly, and as a result, they should not go, and they should not go. In all fairness, correct evaluation is the first. Otherwise, the evaluation is inaccurate, and those who should be encouraged are not encouraged, but those who should not be encouraged are encouraged instead. This will inevitably have adverse consequences. We should give different rewards according to our contributions.

2. Incentive must adhere to the principle of maximum utility.

An incentive measure, its means and methods should be beneficial to both the short-term interests of enterprises and the long-term interests. Akio Morita, a famous Japanese entrepreneur and president of Sony, believes that "people who make meritorious deeds should get bonuses, not status, and status should be given to people with corresponding talents".

3. Incentives must adhere to the principle of necessity of material benefits.

We should deeply realize that the vitality of an enterprise comes from a reasonable interest structure. Why do Japanese employees work so hard? They rely on wages, high bonuses, high pensions, high communication fees and high social status. The interests of enterprises are good, and everyone benefits; On the contrary, everyone has to pay the price.

4. The incentive mechanism must be constantly innovated.

People's needs are constantly changing, and the incentive methods should be constantly innovated. Such as spiritual motivation, material motivation, individual motivation, example motivation, competitive motivation, pressure motivation, goal motivation, emotional motivation and so on. There should be new contents and new forms.

5. Incentive measures must be standardized, systematic and interrelated.

Enterprise personnel structure is complex, and it is impossible without a perfect incentive system. What kind of system, there will be what kind of talent. For example, IBM's incentives for employees are very successful.

Motivation is a systematic project, which pays attention to the whole process of human behavior. Such as career development mechanism, talent growth mechanism, talent evaluation mechanism, interest-driven mechanism, two-way selection mechanism, competition for posts mechanism, market regulation mechanism and so on. Managers should adjust all incentive behaviors to make them develop in an orderly, favorable and effective direction.

When incentive is implemented, although one person is encouraged, it has an incentive effect on everyone, thus forming a linkage effect of mutual incentive in the enterprise. As the saying goes, it is impossible to adopt the same incentive method because of the different needs of employees at different levels. Therefore, private enterprises in China should formulate effective incentive methods according to different needs.

1, middle and senior management incentives

The role of motivation is particularly important for high-level human resources, such as managers. Entrepreneurs can belong to individuals. If "incentives" are insufficient, such people will be in short supply like "natural scarcity".

Incentive methods mainly include annual salary and emotion.

(1) annual salary system. Theoretically, the equilibrium price of annual salary is usually determined in the factor market, which is the result of the game between the psychological price of senior talents (supply side) and the post salary of enterprises (demand side). Once senior talents get the annual salary basically consistent with the psychological price, they can think that the annual salary has an incentive effect on them. In order to highlight the incentive effect, the annual salary is divided into basic salary (monthly payment) and salary increase (successive payment). The basic salary is the recognition of its normal labor, and the salary increase is the recognition of its business performance. Salary increase not only has incentive function, but also embodies constraint function. It should be noted that according to the traditional human capital theory, human capital is not mortgaged because of its fluidity, and human capital often "abuses" non-human capital in a lazy way.

(2) Stock option incentive. Stock option is a feasible long-term incentive method, which effectively solves the problem of differentiated incentives and constraints. Stock option is a right provided by enterprise owners to senior talents in the enterprise, allowing them to buy shares of the enterprise at a predetermined price, the so-called "execution price", within a specific period, usually 3-5 years. This right cannot be transferred, but the purchased shares can be sold in the market. Usually, stock options only allow the holder to enjoy the income right brought by stock appreciation, and generally do not pay dividends.

(3) Emotional therapy and other incentives. No matter which incentive method is adopted, enterprises and managers should form the same interest subject. Middle and senior managers are human beings, and they also have different needs. Therefore, to retain talents, it is necessary to retain people in career, emotion and treatment. Therefore, it is very necessary to take other measures to increase the cohesion of enterprises in combination with cultivating corporate culture. In order to encourage and retain the technical backbone, Metersbonwe Bang Wei Bang Wei Company, which deals in clothing in Wenzhou, once offered them shares, but they didn't have much money and were unwilling to contribute. Chairman Zhou also thought about sending shares, but later the company bought a high-grade house for the backbone, and the backbone was very satisfied. Because the house is visible and tangible, it is more real in your own hands than the donated shares.

2. Motivation of ordinary employees

The application of motivation is based on people's needs, and it promotes the work enthusiasm of organization members by meeting people's needs. For the management process, we might as well boil down the incentive methods to three modes:

Target incentive mode. Appropriate and moderate goals are the premise of encouraging work. Psychologist Locke put forward an argument in 1967 that striving to achieve the goal is the most direct motivation to complete the task, and external stimuli, such as rewards, understanding of work results, social pressure, etc. , all affect the motivation by affecting the goal. Hall and others further demonstrated in 1970 that setting goals can play a benign psychological cycle. Goals promote efforts, efforts produce achievements, and achievements enhance self-esteem and sense of mission, thus producing higher goals.

Participate in the incentive mode. In the process of management, by allowing members to participate in organizational management activities, they can increase their self-concern for organizational goals, give play to their creativity and initiative, show higher production efficiency, and accelerate the realization of organizational goals and personal goals.

Achievement incentive model. By means of promotion, salary increase or providing better working conditions, the work enthusiasm of those members who work actively and effectively to achieve organizational goals will be further stimulated.

Specific application to private enterprises can be manifested in the following ways:

(1) Trust incentive. The operation of a society must be lubricated by the basic trust between people, otherwise, the society will not be able to operate normally and orderly. For private enterprises, trust is the basis for operators and employees to reach a consistent goal. Mutual understanding and trust between superiors and subordinates is a powerful spiritual force, which contributes to the harmony between people and the formation of unit team spirit and cohesion. Managers' trust in subordinates is reflected in treating people equally and respecting their labor, authority and opinions. This kind of trust is embodied in "employing people without doubt, suspecting people without use", and also in letting go of use. Only by using it freely on the basis of trust can we give full play to the subjective initiative and creativity of talents and fully tap their potential. Motorola's galvin family culture clearly embodies this point. Trust is an affirmation of employees' personal dignity.

(2) Work motivation. For a talent who has both ability and political integrity, can manage and employ people, and can create a new situation in a department. It is necessary to promote and reuse in time, and not to dampen the enthusiasm of "Maxima". As a leader of a private enterprise, he should have a discerning eye and not "turn a blind eye" to the talents around him because of his own selfish interests. Suppressing and burying talents can only make their own enterprises suffer. "Be an official and benefit one party". As a leader of a private enterprise, we should have the courage to "know the tiger and the dragon and selflessly distinguish talents". Only in this way can we gather local talents and recruit talents.

(3) Group motivation. Group motivation is the motivation that individuals are influenced by group relations in group activities. In an enterprising and warm group, individuals will be encouraged by the strength of the group and will not be left behind, conform to the crowd and make active efforts. Create a "love" atmosphere and a "beautiful" environment, and truly make the enterprise an "employee's home". Employees will feel that if they leave the group, they will lose their sociality and even find it difficult to survive. Akio Morita, a Japanese entrepreneur, said: "The most important task of entrepreneurs is to cultivate healthy relationships among employees and create the overall concept of a big family in the company." This group culture atmosphere of creating friendly cooperation and mutual help within enterprises has been called "team spirit" or "team culture" since the 1970s, which drives every employee to constantly strive for self-improvement, thus generating a sense of trust, belonging and responsibility for the enterprise.

(4) Emotional motivation. Emotion is the most direct factor affecting people's behavior, and everyone has the need to crave all kinds of emotions. Especially for family businesses, in order to arouse the enthusiasm of employees outside the family, we must first create a family-style atmosphere of mutual trust, mutual care, mutual understanding, mutual support, mutual respect and care, unity and harmony; Enhance the sense of belonging to the unit. "heart for heart" is the best way to create consistent interests. "Effective corporate welfare needs to reach a benign communication with employees." Scheibel of Shanghai Bell Company made a surprising remark: "To really win the hearts of employees, the company must first understand the inner needs of employees."

(5) Goal motivation. The goal is the psychological attraction of the organization to individuals. As an inducement, the goal has the function of guidance and encouragement. Only by constantly pursuing high goals can a person stimulate his inner motivation. As a philosopher said, "there are bumps and thorns between the goal and the starting point;" The contradiction between ideal and reality can only be unified through struggle. We know that everyone wants to do something and look for opportunities to display their talents. Many people who work in private enterprises are interested in the flexible employment mechanism of private enterprises. Unlike state-owned enterprises, they don't judge heroes by their qualifications. Therefore, private enterprises should grasp their psychology and strive to meet the self-development desire of talents.