No matter which salary model, there will be its advantages and disadvantages when used alone. Position-based pay model has two advantages:
One, compared with the traditional pay model according to seniority and administrative level, the real realization of the same post, the same pay, internal fairness is relatively strong;
Two, the promotion of the position, the pay scale is also promoted, mobilizing employees to work hard to strive for promotional opportunities.
At the same time, its shortcomings are also more obvious:
One, if an employee can not be promoted for a long time, although the position work is getting better and better, but it is difficult to have a greater increase in the level of income, which affects the motivation of their work. This situation is very common, an employee's direct superior is only in his thirties, the business of the enterprise is relatively stable, there is no promotion in the short term of the vacant position, then his career development lacks prospects and hope. Especially in the state-owned enterprises, personnel turnover is very low, only rise, basically no drop, resulting in job promotion is very cautious;
Two, due to the position-oriented pay system places more emphasis on the fairness of the value of the internal position, in the selection and recruitment of scarcer talent from the market, it is likely that due to the inward-looking nature of the internal pay system to meet the scarcity of talent pay requirements, but also to attract the much-needed Professionals, especially not as personnel management of expert technical personnel; Third, in the same position, the performance of good or bad performance and income correlation is not large, the same position between the employees to compare each other do more or less, will greatly reduce the enthusiasm for work.
Performance-based pay model has obvious advantages:
One, the employee's income and the completion of the work objectives are directly linked to the staff feel very fair, "do more or less good or bad is not the same," the effect of incentives is obvious;
Two, the employee's work objectives are clear, through the layers of the target decomposition, organizational strategy is easy to achieve;
Two, the staff's work goals are clear, through the layers of
Three, companies do not have to pay high labor costs in advance, and can save labor costs when the overall performance is not good.
Performance-determined income compensation system also has more obvious shortcomings:
First, the level of fixed salary for attracting and retaining talent is critical, short-term incentives to stimulate the role of employees, the long-term use of the bad guide, in the slow growth of the enterprise, employees can not get high material aspects of the remuneration, the incentive for employees to decline in the enterprise difficulties, it is difficult to do "****", "****", "****", "****", "****", "****", "****" and "****". It is difficult to do "*** degree of difficulty", resulting in brain drain and difficult to attract talented people;
Secondly, the performance evaluation is often difficult to be objective and accurate, for most Chinese companies, few companies have a perfect performance appraisal system, high performance may be caused by the environmental conditions, and the employee's efforts are not related to itself. Great, and vice versa, at the same time require managers responsible for the assessment of high quality, "good old boy" phenomenon is still prevalent, the managers of the scoring scale is not uniform, if in this case will be too large a proportion of income and performance linkage is bound to create a new inequity, but also can not play the role of incentives to pay for performance;
Thirdly, the job characteristics of each position are different and it would be unfair to adopt the same system for functional, technical and operational staff.
As from the perspective of economics to analyze the issue of employee compensation, the basic law of the market economy, supply and demand determines the price is also applicable to the employee's salary model. With the formation of the strategic position of the competition for human resources in the enterprise competition, through the design of remuneration to attract, retain and motivate talents is the fundamental goal of the remuneration system.
The advantages of the market-based pay model are twofold:
One, the enterprise can attract and retain key talents through the pay strategy;
Two, the enterprise can also adjust the pay level of those who have strong substitutability, so as to save the labor cost and improve the competitiveness of the enterprise;
Three, the reference to the market to set the payroll, the long term will be easy to make the employee Acceptance, reduce the staff in the enterprise within the contradiction.
The shortcomings are also obvious:
One, the market-oriented salary system requires good development ability, profitability and financial support of the enterprise, otherwise, it is difficult to pay and maintain the market high salary level;
Two, the employees have to be very well aware of the market salary level before they can agree with the market salary system, so this salary mode puts forward a very high requirement on the objectivity of the salary market data. It also puts requirements on the professionalism of the employees;
Thirdly, if the employees are paid completely according to the market, the salary gap within the enterprise will be very big, which will affect the balance within the organization.
In the actual case, the vast majority of enterprises will be combined with the above three pay models, the advantages and disadvantages of the design program, whether it can be effectively implemented, how to use the tools to establish a reasonable pay system suitable for their own enterprises, the following is the general process of payroll design.
The first step is to establish a salary system based on the value of the position, reflecting the internal fairness, salary adjustment for each employee is very sensitive, easy to produce emotional fluctuations, the overall stability of the enterprise is the premise of the development of the enterprise, in the design process to consider the overall stability is an important basis for the success of the salary reform.
Secondly, in the specific design, we must first establish the enterprise's pay strategy. What is the strategy and positioning of the enterprise, is the beginning of the industry market exploration, is the rapid expansion of the industry market share or is the industry market leading enterprises, consolidation at the same time steadily expanding, which positions is the development of enterprises to achieve the key positions of the enterprise strategy, which positions are urgently needed to be introduced from the market, which positions are the focus of the retention of the positions that are alternative to the very strong. With such an analysis, it is also clear that the direction of the design of the program, in order to be targeted in reference to market data. Select a reasonable subset of market data, the design of the program in the salary level of each position will be determined. At the same time, the design of a reasonable level, to meet the same position in the salary promotion space, but also to facilitate the resolution of some of the enterprise's legacy issues, the handling of individual cases. For example, the enterprise has the contribution of the old staff, the original salary level is higher with the current position value of the low contradiction.
Then you have to determine the salary structure of each position. Mainly fixed part and floating part of the reasonable proportion. First of all, the grade, senior management, director level, managerial level, supervisory level, executive level should be based on the size of the position's responsibility to determine the different ratios, in general, the higher the position, the larger the floating part. At the same time to consider the characteristics of the position, whether it is necessary to divide into different sequences. For example, sales sequence, technical sequence, management sequence, etc., different sequences take different salary structure.
Then also analyze the common problems in salary management, salary should be confidential or public? How to deal with the employee's dissatisfaction with the salary? How to use the results of performance appraisal, and how to link the salary? What are the responsibilities and positioning of the company's decision makers, department managers, finance department and human resources department in the salary reform? How to adjust the salary, when to adjust the salary, and the standard of promotion and demotion? Bonus calculation method, payment time? And so on these, will be formed in the enterprise "salary system" or "salary manual" of the document clearly embodied, so that the enterprise's salary management is more standardized.
Because of the different foundations of each enterprise, in the design and implementation of the enterprise must be combined with the ability to bear, including the cost of labor and pressure from the internal staff, the appropriate grasp of the strength of the adjustment, for the state-owned enterprises, but also would rather have less strength, but also to ensure that the reform of the implementation of the success of the reform. In short, we should establish a salary system based on job value, refer to market data, supplemented by appropriate incentives, combined with the actual characteristics of the enterprise, to achieve a balance between internal fairness and market competitiveness, and at the same time should be based on changes in corporate strategy and market dynamics, and make timely and appropriate adjustments. These are the challenges for business owners and professional managers, to analyze the causes of these problems and find solutions to develop a suitable compensation system for their own entrepreneurs need to continue to learn, the courage to explore; in order to improve efficiency and make fewer mistakes, enterprises should work closely with management consulting firms, **** the same efforts.
Excerpted from the network