The organizational structure and salary system of the headhunting company are divided into three different positions for explanation.
1. Technical positions: This type of position can reward free time and space. Technical employees are mental workers and should focus on stimulating employees’ creativity. For example, Emerson headhunting will reward employees after a certain number of years of work. , you can arrange time off and annual leave, giving them free control over their not-busy time.
2. Quality positions: Cangzhou Headhunting Company believes that quality positions should be praised for their productivity and should be provided with more training and career space plans.
3. Intelligent and management positions: Talents in this type of positions generally have certain management capabilities, and their compensation and benefits can highlight participation in superiors, work diversity, and decision-making power below.
The innovative core of the salary system allows different positions to flexibly set demand points and present them in front of employees in a menu-style manner, providing employees with choices. In short, the company's salary and welfare design should be competitive externally and fair internally, focusing on the organic combination of local and individual conditions and salary.
A Case Introduction to the Salary Management System of a Headhunting Company
1. Background Introduction to the Case Company
A German headhunting company (hereinafter referred to as Company Z) entered China in 2007. The main business is executive search in China and Southeast Asia, searching for senior administrative personnel, such as department directors, general managers, CEOs, etc., for Asian institutions of European companies. The company's personnel organizational structure is relatively simple. It is managed according to the functional system and is divided into business sections and administrative sections. Specifically, it is divided into general manager, financial personnel, business development, assistant consultants and researchers. The general manager and business development are both German, and the salary system is in accordance with the German headquarters system. The following analyzes and evaluates the salary management system of Chinese employees, mainly the salary system of assistant consultants and researchers. The company has 4 assistant consultants and 1 researcher, with a bachelor's degree or above. The assistant consultants have worked for 3 to 6 years, and the researchers have worked for 1 year. The average age is 28 years old.
A complete headhunting project is divided into ten steps: entrustment intention, position analysis, contract signing, talent search, talent selection, talent recommendation, customer interview, personnel recruitment, trial guarantee, and tracking services. Through these ten steps, we can ensure the satisfaction of both the employer and the talent, and the smooth completion of the project. Assistant consultants and researchers mainly provide services starting from job analysis to search selection, recommendation and follow-up. The team of assistant consultants and researchers is the key and core of the entire project execution. In terms of project fees, the minimum fee is 80,000 yuan/position. Company Z is an exclusive agent and charges 30% of the total fee as an advance payment when signing the commission intention; after successfully arranging the client interview, it will charge a second fee, usually 30% of the total fee; after the candidate and the client sign the employment intention, Collect final fee. Company Z does not charge service fees based on the candidate's annual salary percentage. When signing the entrustment intention, the service fee is determined based on the difficulty of the position and the candidate's market annual salary.
2. Current salary system
The main team of project execution - assistant consultants and researchers, has four parts of salary, namely basic salary, project bonus, performance commission and living allowance . The basic salary of a researcher is 4,000-6,000/month, and the basic salary of an assistant consultant is 6,000-10,000/month. Project bonuses are divided into four levels according to different project fees, and performance commissions are evenly distributed among the four assistant consultants based on the company's overall performance goals. Taking 2011 as an example, the company's overall performance target is 7 million. The performance target of each assistant consultant is 1.55 million. The performance bonus can be obtained only after 60% is completed by December 31. The full amount is 20,000/person/year. The performance bonus will be obtained according to the completion rate of the performance target. The performance target of 1.55 million is the second and third accumulation of the project after excluding the prepayment. The living allowance is 1,000 yuan/month. Living allowance is applicable to all employees of the company. There are no performance indicators or performance incentives for researchers.
The basic salary range and project bonus system were implemented after the company reorganized the team in 2009, and the performance commission system was implemented on January 1, 2011. From 2009 to 2010, because the company was in its initial stage, there was no performance commission system. The living allowance is 800 yuan before January 1, 2010, and 1,000 yuan thereafter.
3. Analysis and Evaluation
(1) Fixed Salary and Variable Salary
Due to the particularity of the industry and service products, Z Company has no requirements for assistant consultants and researchers The salary structure is based on fixed salary + variable salary and is incentive-oriented. According to the industry market level, Z Company’s basic salary for assistant consultants and researchers is at the upper-middle level of the industry. Most headhunting companies adopt a low base salary + high commission. The total amount of project bonuses and performance commissions is at a low level in the industry. At present, a low-flexibility, high-stability salary model is adopted, and a salary payment structure based on fixed salary has poor salary incentives.
(2) Long-term compensation and short-term compensation
Company Z mainly prefers short-term incentives and immediate incentives in the compensation structure, without long-term incentives such as profit sharing, partnership and other measures.
(3) Centralization
The amount of employee compensation is determined by the general manager alone. In the determination of basic salary, there is no relevant hierarchy, just a range, which lacks the internal fairness principle of salary.
(4) Lack of incentives
90% of Company Z’s project service fees are more than 250,000 or even 1 million. Project bonus level, all projects worth 250,000 will be given 2,500. On the one hand, the service fee is set based on the difficulty of the project operation. Projects that charge 260,000 yuan and 1.2 million yuan are very different in difficulty and time. And then giving bonuses to the same project lacks fairness. On the other hand, the project bonus system is not adjusted in time according to the company's actual business conditions, and lacks motivation for employees.
4. Performance and remuneration
Company Z’s link between performance and remuneration is only result-oriented by completing projects. As a service organization, there is a lack of management and control over the work process. Performance appraisal is too single, and compensation and performance management are not well integrated. For the situation of Company Z, you can consider using the balanced scorecard method to manage performance from a financial perspective (project revenue, project gross profit and gross profit margin, project repayment rate); from a customer perspective (customer satisfaction, talent satisfaction, customer development rate, customer retention rate) internal process perspective (project progress completion rate, talent pool number growth rate, talent search channel growth rate, number of process optimization suggestions); learning and growth perspective (project team member satisfaction, improvement of project team member capabilities , the number of solution suggestions), giving weight to each assessment indicator. The connection between the balanced scorecard and variable pay can motivate employees to focus on the goals of the balanced scorecard, encourage employees to focus on the realization of the balanced scorecard goals, and promote the implementation of the company's goals and strategies①.