How to make good use of the double-edged sword of salary system

Salary is a very important tool in human resource management. If properly used, it will stimulate employees' high enthusiasm for work, achieve the goal of reasonable labor costs, and help enterprises achieve good economic benefits. Many enterprises and human resources personnel are asking this question. How to win the salary? To answer this question, we must first understand the three purposes that the ideal salary system of modern enterprises should achieve: first, to provide competitive salary in the market and attract talents; The second is to determine the fairness within the organization and reasonably determine the relative value of each position within the enterprise; Thirdly, salary must be linked to work performance, which can stimulate employees' work motivation, reward excellent work performance and motivate employees with monetary rewards. Whether the salary level of enterprises is reasonable or not directly affects the competitiveness of enterprises in the talent market. Only when the salary is competitive with the external environment can enterprises attract all kinds of outstanding talents needed for development. Salary is a very important tool in human resource management. If properly used, it will stimulate employees' high enthusiasm for work, achieve the goal of reasonable labor costs, and help enterprises achieve good economic benefits. Therefore, a competitive salary system can be summarized as "external competitiveness and internal fairness". "External competitiveness": With the acceleration of China's marketization process, the labor market is becoming more and more perfect. As one of the resource elements, the allocation of talents must conform to the requirements of market economy, and the flow of talents is bound to be affected by price-salary. It has become a common phenomenon that talents flow to high-priced areas and enterprises. In this sense, whether the salary level of an enterprise is competitive in the talent market is a key factor. The salary management of enterprises plays an important role in attracting and retaining talents. Therefore, when making salary standards, enterprises must consider the salary level of enterprises with similar scale in the same industry in the region and the average salary level in the same industry market in the region, so as to make the salary of enterprises competitive and attract and retain the talents needed for enterprise development. "Internal fairness": It is found that from the internal perspective of enterprises, employees are more concerned about the salary difference than the salary level. The differences in employees' personal abilities, jobs and work attitudes will inevitably lead to differences in personal salaries. How to make this "difference" not only encourage the advanced and be accepted by most employees, but also reflect fairness is becoming more and more important for salary management. In the actual salary management, this point is often ignored. In the case, the manager of the engineering department of the property management company resigned because the salary between posts was unreasonable, which did not reflect the relative value of posts within the enterprise and caused unfairness. Compared with the manager of the administrative department, the position of the manager of the industrial pie department is more difficult and the responsibility is heavier. This difference should be reflected in the salary. In fact, there was no such difference, which led to the manager of the pie department losing his previous enthusiasm and later resigned. The salary design of enterprises should follow the principle of "fairness and justice", especially internal fairness. The salary level must reflect the size of post responsibility and ability between different departments or between different personnel in the same department, that is, the salary difference must be reasonable. Unreasonable internal salary will cause asymmetry of rights and responsibilities between different departments and individuals in the same department, which will make some employees feel unfair in comparison and cause psychological imbalance. To strengthen the internal fairness of enterprise salary, it is necessary to reasonably determine the relative value of different positions within the enterprise, that is, to do a good job evaluation within the enterprise and quantitatively evaluate the value of the position from the aspects of the complexity, responsibility, control scope, required knowledge and ability of the position itself, which is the key to fundamentally solve the internal unfairness of salary. What kind of salary system and salary structure enterprises adopt will inevitably be different. Only by establishing a reasonable salary structure according to its own characteristics can we give full play to the incentive role of salary. The goal of salary structure design is to make the amount of salary paid by employees directly proportional to their contributions. Through the performance appraisal of employees, enterprises can get the quantitative assessment data of promotion or demotion between posts, so that employees can concentrate on hard work, improve performance, avoid the negative situation of doing well or not, and thus better play the incentive role of salary. In order to solve this problem, Wei Lan conducted market research and analysis on the salary level, adjusted the original salary system, and formulated a new salary scheme that matched the enterprise strategy and organizational structure, which stimulated the enthusiasm and creativity of employees, and the company's development began to recover. To sum up, although salary is not the only means to motivate employees, there are other material incentives and spiritual incentives besides salary incentives, but salary incentives are very important and easy to use for managers.