There is a need to establish a compensation system based on corporate strategy

Establishing a compensation system based on corporate strategy can ensure that the compensation package is aligned with the organization's goals and mission, and here are some steps and considerations:

1.Understand corporate strategy: Gain an in-depth understanding of the organization's strategic goals and priorities, including growth strategy, market positioning, business goals, and more. This will provide guidance and direction for setting up a compensation system.

2.Identify key business drivers: Identify the business drivers that are critical to the success of your business. These factors may include sales growth, customer satisfaction, quality improvements, and more. Connect these factors to compensation targets and incentives.

3.Define KPIs: Identify KPIs that are relevant to your organization's strategy and business drivers. These metrics should be able to measure the contribution of employees in achieving strategic goals.

4.Alignment with job requirements and responsibilities: Ensure that the compensation system is aligned with the job requirements and responsibilities. Different roles may require different skills and contributions, so it is necessary to treat different roles differently.

5.Design the compensation structure: Design the compensation structure based on strategic objectives and performance indicators, including basic salary levels, performance bonuses, allowances and benefits, etc. Ensure that the compensation structure motivates employees to strive for excellence while aligning with the sustainability of the organization.

6.Consider long-term incentives: In addition to immediate incentives, consider introducing long-term incentives, such as options, equity award plans, etc. These measures can be aligned with the company's long-term goals and growth strategy, encouraging employees to grow together with the organization.

7.Establish a performance evaluation and feedback mechanism: ensure that the performance evaluation system is matched with the compensation system. Establish an effective performance appraisal process that provides timely and accurate feedback to support and inform compensation decisions.

8.Communication and training: Ensure employees understand the design principles, goals, and how compensation systems work. Actively communicate changes and updates to the compensation system with employees, and provide training and support to help employees understand how to succeed under the system.

9.Regular evaluation and adjustment: Regularly evaluate the effectiveness of the compensation system to match the corporate strategy and market changes. Make necessary adjustments and improvements based on the results of the assessment to ensure the consistency and sustainability of the compensation system with the corporate strategy.

Establishing a compensation system based on corporate strategy requires a comprehensive consideration of the organization's goals, culture, market competition, and employee needs. Such a compensation system can better motivate employees to contribute to the strategic goals of the organization and enhance the competitiveness and sustainability of the organization.

Payroll management should be closely integrated with the company's development strategy. On this issue, Bert Consulting would like to share the following points with you:

1.Starting from the enterprise development strategy, determine what kind of compensation strategy to adopt, such as aggressive, follow-up or stable and other different salary strategies, as the guiding ideology for the construction of the entire compensation system;

2.Starting from the management needs of enterprise development and its own actual management level, the design idea of broadband salary, narrowband salary or a combination of broadband and narrow salary system is selected;

3.In the process of enterprise development, there are often some special circumstances at the level of salary management, which need to set up auxiliary solutions such as negotiated salary and annual salary system in addition to the existing salary system;

Hope it helps.

1. Determine the strategic objectives of the enterprise; 2. Conduct target decomposition and determine departmental goals; 3. Determine the weight of the department according to the goal; Fourth, set up the corresponding salary system according to the weight. In addition, when carrying out salary management, it is also necessary to combine the salary system with the development stage of the enterprise.

Answer]: Compensation strategy is an overall, long-term and critical salary decision made by an enterprise according to the opportunities and threats existing in the external environment and its own conditions. Generally speaking, designing and developing a corporate compensation strategy can be summarized in four steps:

1) Evaluate the meaning and purpose of compensation.

This step requires the company to understand the industry in which it operates and how it plans to compete in that industry. The values that companies value towards their employees are also reflected in their compensation strategies. In addition, the social, economic and political environment also influences the choice of compensation strategy.

Global competitive pressures. When developing a compensation strategy, the evaluation of international competitive pressures becomes increasingly important. Among international competitors Liang Jiefeng, the differences in their current compensation systems also affect the compensation strategies of their competitors.

Employees' compensation needs. Employees' compensation needs are varied. Older employees usually have a weaker need for cash and pay more attention to labor insurance and welfare conditions, while younger employees have a stronger need for cash, they want to buy a house or support their families, and they are more interested in higher wages.

A flexible compensation strategy should be developed that takes into account the different compensation needs of employees.

2) Develop a compensation strategy to match the business strategy and the environment.

Through the analysis of the internal and external environment and business strategy of the enterprise, we develop a compensation strategy that supports the business strategy and enhances the competitive advantage of the enterprise.

3) Implement a compensation strategy.

Implement a compensation strategy by designing a compensation system, which is the practice of transforming a compensation strategy into a compensation management.

4) Re-evaluate the matching of compensation strategy and business strategy.

The environment in which companies operate is constantly changing, and business strategies are constantly changing, so must the compensation strategy. In order to ensure this, it is necessary to regularly re-evaluate the balance strategy and the management strategy match.

The main impacts of corporate strategy on compensation management are:

The organization's strategy influences and determines the design of the compensation structure, so as to ensure that the compensation structure is aligned with the organizational strategy, achieve internal fairness of the compensation structure, and promote the effective implementation of the strategy. There are two types of pay structure designs: a hierarchical salary structure and an equity-oriented salary structure.

The former tends to have more grades and smaller gradations; The latter has fewer grades, and the gap between the highest and lowest pay in adjacent grades is larger. The grade-based compensation structure emphasizes that the promotion of positions can play a good role in motivating employees.

This salary structure recognizes differences in skills, responsibilities, and contributions to the organization between employees. In some traditional enterprises that focus on cost control, are customer-centric, and emphasize standardized process operations and qualifications, many will use a hierarchical salary structure. In an equal-paying salary structure, each level defines a broader range of tasks and responsibilities, giving employees greater autonomy in decision-making.

The pay structure that focuses on equality emphasizes that all employees should be treated equally, and the more equal it is, the more satisfied employees will be, so as to form a work team within the enterprise and improve organizational performance.

In today's emphasis on innovation and rapid market response, broadband compensation has emerged as a new type of compensation structure that matches strategies such as organizational flattening, process reengineering, teamwork, and competency-oriented. The biggest feature of broadband salary is that it compresses the level, emphasizing the replacement of the traditional salary scale with fewer salary grades and larger salary grades, and even the traditional more than a dozen grades.

The 20 and 30 levels are compressed into several levels, and the salary range of each level is expanded, so as to form a new broadband salary structure to meet the needs of the current fierce market competition and business development. The remuneration structure of broadband is mostly used for high-tech enterprises and large conglomerates that value innovation and implement differentiation strategies.

Answers]: a, c, d

The construction of enterprise compensation strategy should emphasize three basic objectives: 1. Efficiency goal Efficiency is equal to the ratio of the work output of the enterprise to the labor input of employees. When determining a company's compensation strategy, the efficiency objectives of compensation can be broken down into:

the extent to which the net productivity of labor and relatives has increased; quantity and quality of products, work performance, customer satisfaction; The extent to which labor (labor) costs have increased. 2. The goal of fairness includes external fairness, internal fairness, and fairness to employees, and external fairness - reflected in the fairness of the overall level of employee compensation, and the company's compensation strategy should ensure that employees receive a salary level equal to or higher than that of the labor market for a long period of time. Internal fairness - "one post, one salary, same salary"; Fairness to employees - "more work, less work, no work".

3. Legitimate Objectives: Comply with national and local laws and regulations. Summary: The establishment of salary targets should be subordinated to the direction and purpose of the overall strategy of human resources of the enterprise.

Answers]: a, b, c, d

According to the requirements of the business strategy of the enterprise, the following four steps are generally required to be followed when constructing the salary strategy of the enterprise: 1. Evaluate the connotation of the integrated compensation strategy. 2. Adapt the compensation strategy to the business strategy and environment, and the compensation decision to adapt to the compensation strategy.

3. Concretize the goal of the overall compensation strategy of the enterprise, that is, put forward the specific policies and strategies of compensation, design the specific compensation system and the steps, technologies and skills of implementation, so as to make the compensation strategy more operational and transform it into practical activities. 4. Re-evaluate the adaptability between the salary strategy and the corporate strategy and the environment, and make necessary corrections in a timely manner according to the problems and deficiencies found in the implementation of the company, and make necessary adjustments according to the changes in the company's development strategy, so as to maintain the dynamics and adaptability of the company's compensation system.

Answer]: AP409) Efficiency is a priority that should be prioritized when developing a holistic rewards strategy.

Answer]: A Necessary analysis and evaluation of the connotation of the company's compensation strategy is the first step in formulating a compensation strategy, which helps the company to develop a more adaptive compensation strategy. The second step in building a compensation strategy model is to make five compensation decisions that are compatible with the overall strategy and environmental background of the enterprise: compensation objectives, internal consistency, external competitiveness, employee contribution and compensation management.

Different compensation decisions support different business strategies, so it is important to make the right compensation decisions based on the overall goals and tasks of the enterprise. It must be pointed out that the corporate compensation strategy model is composed of the above five types of compensation structures. The third step of the compensation strategy is to make the compensation strategy a reality by developing a compensation system.

The fourth step is to re-evaluate and adjust the remuneration strategy and to make the various work steps of the strategy form a circular structure. This step means that the compensation strategy must be constantly adjusted to adapt to the changing environment. This ensures that this adaptability is necessary for a reassessment of the period of reprisals.