Monday, October 11, 2010

Salary does not mean that monetary incentives


Real Estate Group, a property under a management company, was first established, the company attaches great importance to the management of standard and fully mobilize the enthusiasm of staff, has developed a more scientific and perfect management system of remuneration, the company has got rapid development, short more than two years, the company's business grew 110%. With the increase in business and the expansion of the scale, many employees have increased, the number reached 220 people.

But the company did not pay management system with the company's business development and job market changes and timely adjustments, or to adopt the old. The development of leadership thought the company had a certain scale, results of operations should be more than before, but in fact, been the decline in our operating results, customer complaints are increasing, staff lost their previous enthusiasm, there has been some technical management backbone to leave those who are not a harbinger of instability. Where: Company Engineering Manager in the logistics department that their income and very little difference between the income of managers, the sense of injustice, he thought the Engineering Manager this position relative logistics department manager, work is difficult, heavy responsibility, should pay the reflect this difference, therefore, work together without the kind of energy before, and later resigned away. Because of staff turnover, lack of staff enthusiasm, once led the company's business difficulties.

In this case, the the company's leaders recognize the seriousness of the problem, through the internal management of the company's deep understanding and diagnostic and found the problem Chu in the company's Xinchoujitong on And crucially technicians Li Liang of the pay levels significantly higher than the market low, external competitive; company pay structure is irrational, internal lack of a fair, resulting in some middle-level technicians and management staff. In response to this specific issue, the company conducted a market on the pay level survey and analysis, and the company's existing pay adjustment system, developed a new organizational structure and corporate strategy, and match the salary program, inspired the enthusiasm of the staff and Creative, the company began the development of a good recovery momentum.


Can be seen from this example, companies pay system science or not, the impact on enterprise development is enormous, even fatal. How to build a scientific and reasonable salary incentives, how to play the best incentive compensation effect, so the enterprise can attract and retain talent, creating an efficient, stable workforce and achieve sustainable development of enterprises, human resource management of enterprise a very important job.

1. Ideal of modern enterprise system should meet three objectives salary.

Long-term management practice, as our business experience in human resources management of the accumulated time is very short, coupled with the management of enterprises in this area pay enough attention to human resources management, basic work serious flaws, contradictions and increasingly corporate salaries more prominent.

Modern enterprise system should be the ideal salary achieve three objectives: first, offer competitive salaries to attract talented people; the second is to determine the organization of fair and reasonable within the enterprise to determine the relative value of various positions; s The third is to link pay to job performance, motivate staff motivation, reward good work performance, using financial rewards to motivate the purpose. Enterprise reasonable level of remuneration, directly affect the company's competitiveness in the job market. Only the external environment and competitive salaries to attract the development of enterprises all the necessary talents. The case of the low salary levels in the enterprise, in particular, is a critical technology backbone of the pay level is significantly lower than the market, external competitive, leading to some middle-level technicians and management staff. Lack of market competitiveness of remuneration, the consequences of brain drain caused by enterprises is extremely clear, and the results are caused by constantly recruiting new businesses to meet the operational needs of employees, while employees are constantly leaving the old vicious circle, this is a great Human Resources waste.

2. Concerned about the pay differences between employees concerned about the pay level than that.

Study found that, from the enterprise concerned, employees concerned about the pay differential is higher than concerned about pay levels, however, individual capacity and its working office staff, work attitude will inevitably bring about the distinction between individual differences in pay, how to make this "difference" not only to encourage the advanced and can be accepted by the majority of employees, but also shows that fair, which is increasingly important for salary management. In reality, pay management, it is often overlooked.

Case of the property company has said the project manager's resignation because of positions between the pay is unreasonable, there is no better reflect the internal post between the relative value of the resulting sense of unfairness. Engineering Manager Logistics Manager, this position is relatively difficult to work, heavy responsibility, should be reflected in pay on the difference, in fact no, it created a project manager to work together without the kind of energy before, and later resigned away . Corporate compensation design should follow the "fair and just" principle, particularly internally and fair, different Bumen different between or among the same department, salary level must be job responsibilities and capabilities of Fan Ying size, that is to be a reasonable salary Cibie. Internal pay unreasonable, will cause the same sector and between different departments of power and responsibilities among individuals asymmetry in comparison to some of the staff, unfair sense of psychological imbalance. To strengthen the company's internal pay equity, it must reasonably determine the internal relative value of different positions, is to do internal job evaluation jobevaluation, for the post itself, from the post of complexity, responsibility size, control, the required knowledge and abilities of our students to quantify the value of the job evaluation, this is the fundamental solution to pay the key internal and unfair.

3. Characteristics of the enterprises themselves according to a reasonable salary structure.

Enterprises pay system be adopted and how the pay structure must differ only in accordance with their own characteristics to establish a reasonable salary structure in order to play better pay incentives. Salary structure design goal is to make employees pay the amount received is proportional to its contribution, business performance evaluation by staff, so that the promotion or demotion between posts with quantitative assessment data so that employees concentrate on work, improve performance up to avoid succeed and little of a kind of negative situation, in order to play better pay incentives. Case has said the company solve this problem, the salary level for a market survey and analysis, and the existing pay adjustment system, developed a new organizational structure and corporate strategy and remuneration package to match, inspiring employees enthusiasm and creativity, the company began the development of a good recovery momentum.


Although the pay is not the only means to motivate employees, in addition to salary incentives to motivate the material, there are other material incentives and moral motivation methods, but incentive pay is a very important and the most vulnerable to the use of incentive management methods. Managers must recognize that pay employees on the importance of incentives, pay on money management is not directly concerned, but concerned about the proper use of incentive pay that money. Even if the total remuneration of the same, but different ways to pay, will get a different incentive effects. So, how to achieve maximum performance pay is worth exploring an art of management.

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