Briefly explain the main points of compensation incentives. 1000 words

Here are the key points of compensation incentives:

1.Impartiality: The compensation and incentive plan should be fair and equitable, and reasonable differentiation and differentiated incentives should be given to different employees.

2.Transparency: The formulation of compensation and incentive plans should be transparent, so that employees have a clear understanding of the compensation system, incentive methods and evaluation standards, so as to enhance employees' sense of trust and identity.

3.Feasibility: The compensation incentive plan should be feasible, that is, in line with the company's financial budget and business strategy, and at the same time, it must also comply with laws, regulations and ethics.

4.Incentive: The salary incentive plan should be motivating, that is, it can motivate employees to achieve performance goals and corporate goals, and improve employees' enthusiasm and creativity.

5.Flexibility: Compensation and incentive packages should be flexible and able to be adjusted and optimized according to the company's development and employee performance.

6.Long-term: The compensation incentive plan should be long-term, which can continuously motivate employees to achieve corporate goals and personal development goals, and improve employee loyalty and stability.

7.Diversification: The compensation and incentive plan should be diversified, including basic salary, performance bonus, equity incentive, welfare and other forms to meet the incentive needs of different employees.

The main points of compensation incentives are as follows:

1. The principle of fairness - this is the first principle of designing the compensation system and managing the salary.

1.External fairness – Compensation for similar roles in the same industry or in the same region or size should be broadly corresponding.

2.Internal fairness – the remuneration received for different positions in the same enterprise is proportional to their contributions, and the ratio is the same.

3.Employee Equity – Companies should pay employees for similar work roughly the same based on their personal factors, such as performance and education.

4.Group Equity – The remuneration of different task groups in the organization should be proportional to their respective performance levels.

At the same time, the following three points should be paid attention to when designing:

1.The remuneration system of an enterprise should be guided by clear and consistent requirements and based on a unified specification that can be explained.

2.The remuneration system needs to be democratic and transparent.

3.Enterprises should create conditions for equal opportunities and fair competition for employees, and guide employees to shift their attention from equal results to equal opportunities.

Second, the principle of competitiveness - the salary level of the core talents of the enterprise should not be lower than the market average.

3. Incentive principle - embodies the principle of distribution according to work and contribution.

Fourth, the principle of economy - subject to economic constraints, the salary level of employees should also be linked to the performance of employees.

V. Principle of Legitimacy -- In line with the country's laws and policies, China's legal system needs to be filled, bridged, and enriched.

Remuneration refers to the sum of all labor remuneration that a worker receives by relying on his labor. Motivation, in short, is to mobilize people's enthusiasm for work and give full play to their potential abilities. Salary incentive is to effectively improve the enthusiasm of employees, on this basis to promote the improvement of efficiency, and ultimately promote the development of the enterprise.

While the enterprise is profitable, the ability of employees can also be well improved and realize their self-worth.

1) The principle of fairness. Fairness doesn't mean big pot rice, generalize. This kind of fairness is based on the consistency of employees' positions, levels and abilities, and it is horizontal fairness.

The other is vertical fairness, which is based on the development process, because the development of an employee in the enterprise is processual and continuous, so his salary also continues to increase with the accumulation of time.

2) The principle of competitiveness. This principle requires that the company's salary system should be able to compete with other enterprises to a certain extent, so as to attract and retain talents, and then make talents work for the development of the enterprise.

3) Motivational principle. Effective incentives require a combination of high salaries and science, rather than relying solely on higher salaries to motivate employees to work. Scientific salary incentives should be based on stimulating employees' abilities and closely linking them with their work performance.

4) The principle of economy. This principle requires that salary incentives should be within the scope of the enterprise's affordability, profit accumulation, and cost control, rather than blindly advocating high salaries. Therefore, when the principle of competition and the principle of incentive are applied to the salary incentive system, they should be limited by the economic principle.

According to modern salary theory, the salary strategy must first consider external competitiveness, that is, it must be based on the salary level of the same industry and position, and only at a price higher than the market can the high-end talents be attracted and finally retained. At the same time, we must also consider the internal consistency, that is, there must be a scientific job analysis and a relatively reasonable job value evaluation, only the focus of the incentive on the core employees, key positions, in order to truly build the core competitiveness of the enterprise.

Compensation incentives are far from being a matter of how much monetary wages are paid, but rather a system that is broken down into extrinsic and intrinsic compensation. Extrinsic compensation is usually divided into direct, indirect and non-financial compensation. The content of direct remuneration includes basic salary, overtime and holiday allowance, performance funds, profit sharing, and options; Indirect remuneration includes health care plans, after-hours benefits, services and additional allowances. Non-financial remuneration may even include preferred office decoration, ample lunch breaks, specific parking spaces, preferred work arrangements, business cards and catchy titles.

Intrinsic compensation includes participation in decision-making, greater responsibility, opportunities for personal growth, greater freedom and discretion at work, more interesting work, and diversity of activities.

Salary incentive refers to stimulating the enthusiasm, initiative and creativity of members of the organization through reasonable salary system design and salary structure distribution, and creating more economic and social benefits for the organization. It is an important function in the income distribution system.

Salary incentives - divide the money to be brainy.

Long-term incentive compensation, also known as long-term incentive plan, mainly refers to a plan that evaluates employee performance according to a performance cycle of more than one year (usually 3-5 years) and motivates employees accordingly.

Long-term incentive compensation is of great significance to both enterprises and employees. Long-term incentive compensation links employees' earnings to the long-term performance of the organization, motivates employees to consider the long-term performance of the organization, and avoids short-term behaviors of employees. Long-term incentive compensation can also foster a sense of ownership, which can help companies recruit and retain high-performing employees, thus laying a good foundation for long-term capital accumulation.