How to establish a modern enterprise compensation system

Establish a hierarchical salary system, so that each salary has the opportunity to advance, and at the same time according to age and public age for equal remuneration and payment.

How to establish a reasonable compensation system? This should be based on long-term experience in production, life and management, absorbing management and establishing reasonable remuneration rules and systems, and getting theory from the banquet, and then from the theory to the most practical.

Formulating the remuneration (including wages, bonuses and benefits) of management personnel is one of the main contents of human resource management of cooperatives. The competition of cooperatives under the conditions of market economy is in essence the competition of talents. Therefore, for cooperatives, reasonable remuneration can play a positive role in attracting, retaining and motivating talents.

When determining the remuneration of its management personnel, cooperatives should abandon arbitrariness and traditional concepts, adhere to scientificity, reflect fairness, grasp reality, comprehensively consider various factors, and formulate a quantitative structure system to facilitate specific operations. Drawing on the experience of enterprise salary system construction, it is suggested that the quantitative salary structure system of cooperatives includes the following contents: (1) basic salary.

That is, to ensure that the salary of the basic living expenses of the management personnel cannot be lower than the minimum wage standard of the enterprise determined by the local government. (2) Post allowance. That is, the subsidized remuneration (such as ** fee, transportation expenses and other subsidies) enjoyed by the staff in their work should be formulated in principle according to the level of the position held by each person, and the classification and classification should be considered.

3) Pay insurance. That is, cooperatives are responsible for paying social insurance premiums such as basic pensions, basic medical insurance, unemployment insurance and work-related injury insurance premiums for their staff in accordance with the laws, regulations and explicit terms of the employment contract, and the fee base and rate shall be implemented in accordance with the relevant regulations. (4) Incentive salary.

That is, the cooperative gives incentive remuneration according to the work performance of the staff in a certain period of time and their contribution to the development of the production and operation of the organization. Specifically, through the annual and quarterly assessment of business and efficiency performance or the evaluation of the performance of job responsibilities, the managers, deputy managers, financial accountants and other professional and technical personnel who have completed the business and efficiency objectives and tasks or are competent in the evaluation will be given a one-time bonus; For those who exceed the completion of the business and efficiency objectives and tasks or the evaluation is excellent, material rewards will be awarded, and the amount will be determined by the board of directors. Due to the large differences in the level of economic and social development and the economic strength of cooperatives in various localities, how to determine the remuneration of the staff of cooperatives and build a salary system should adhere to the principle of adapting measures to local conditions and adapting measures to the conditions of the time, generally grasp the principle that "dead wages" (basic wages and social insurance) account for a small part and "live wages" (post allowances and incentive wages) account for the majority, and establish a salary system that is conducive to mobilizing the enthusiasm, initiative and creativity of the staff.

Establishing a reasonable compensation system usually requires the following steps:

1.Job evaluation: Evaluate different positions in the organization, including the job content, responsibilities, requirements, etc., to understand the relative value of different positions and provide a basis for the design of the compensation system.

2.Market research: To understand the salary level of similar positions in the external market, market research can be conducted through salary surveys, salary data reports, industry salary research, etc., so as to compare with the market salary level and ensure that the buried salary system is competitive in the market.

3.Compensation strategy formulation: Formulate compensation strategy according to the organization's human resources strategy and goals, including salary positioning, salary differentiation, salary structure, etc. The compensation strategy should be aligned with the organization's strategy and support the organization's talent acquisition, motivation and retention goals.

4.Salary structure design: Based on the results of job evaluation and market research, design a reasonable salary structure, including the proportion and relationship of each component such as basic salary, allowance, bonus, commission, etc.

The compensation structure should reasonably reflect the relative value of the position and the market level of compensation, while meeting the organization's compensation strategy and budget requirements.

5.Salary implementation plan: According to the salary strategy and structure, formulate a specific salary implementation plan, including employee salary calculation, salary adjustment rules, salary calculation, etc. Compensation implementation plans should be clear, fair, and transparent, ensuring that compensation is implemented and designed.

6.Monitoring and Adjustment: Establish a monitoring and adjustment mechanism for compensation management, and regularly evaluate and adjust the compensation system to ensure that it continues to be effective and consistent with market compensation levels and organizational strategies.

Monitoring and adjustment should be based on changes in the internal and external environment of the organization, and the deficiencies of the compensation system should be corrected in a timely manner.

7.Communication and training: Establish a communication and training mechanism for compensation management to ensure that employees have a clear understanding of the compensation system and can operate and utilize the compensation system correctly.

Communication and training should include compensation policies, compensation structures, compensation adjustment rules, etc., so that employees can understand how the compensation system works and their own compensation.

8.Audit and compliance: Establish an audit and compliance mechanism for payroll management to ensure the compliance of the payroll system, including compliance with laws and regulations and the requirements of the organization's internal policies.

Review the compliance of the compensation system, guard against potential legal risks, and protect the interests of employees and the organization.

In short, the establishment of a reasonable compensation system needs to go through the steps of job evaluation, market research, compensation strategy formulation, compensation structure design, compensation implementation plan formulation, monitoring and adjustment, communication and training, and audit and compliance. Such a compensation system design ensures that compensation is fair, reasonable, in line with market conditions, and supports the organization's human resource management strategy and objectives.

The design of the remuneration system should take into account both "rationalization" and "personalization". "Rationalization" generally emphasizes the scientific nature of compensation, while "personalization" often emphasizes the "incentive" and "feasibility" of compensation. At present, around "rationalization" and "personalization", the main ways of salary distribution are:

Pay for the value of the position.

This first requires the enterprise to conduct a job analysis of the positions that need to be established, determine the nature, main job responsibilities, performance standards, etc. of each position, and then judge the different values of different positions according to relevant indicators, or the importance of the enterprise, and design the salary distribution accordingly.

Pay Li Yi for personal errands.

Some employees in the enterprise are the core layer, some are ordinary employees, some are scarce in the market, some are difficult to train, and some can be directly employed. For these different groups of people, their market value, role in the enterprise, and the role they play are different, so it is necessary to set up a "competency model" on the basis of determining the value of the post, according to the core competencies and qualities of the personnel that the enterprise pays attention to, so as to distinguish the salary standards of different personnel.

Pay for performance.

Refer to market data and the company's internal salary concept, split the salary structure. Set performance standards and pay salaries according to the performance of on-the-job personnel.

The main design steps are:

Investigate the internal compensation situation;

Conduct job valuations;

Conduct market benchmarking analysis;

Development of remuneration policy lines;

Set the gear bandwidth;

Carry out cost calculations;

splitting" and "expanding" new compensation outcome items;

Reporting, Implementation, Feedback and Improvement.