Software Services, Enterprise Software Developers To Implement Self-pay Program To Explore

With the recent rapid growth in the, Infprmation Technology industry and its rising status as the critical role in today's economic and social development, Software Outsourcing Service has become a leading power in next breakthrough in diversifying IT services, stimulating competitiveness of traditional industries and optimizing management practice. Software developers have become hot pursues in the job market in large quantities as a consequence. As the key creators and carriers of intellectual properties that IT service companies relied and thrived upon, software developers represent a type of human capital that needs special attention. The core value of-independence and self-propel, has determined a variety of personalities and interests. If a company wants to attract, retain and motivate talents, it has to give up the old style compensation structure, and use an employee centric approach, which allows the employees to participate in the design of their own compensation package and cater to individual satisfaction.This paper builds on the concept of cafeteria compensation and John E.Tropman's 10 compensation element theory. We introduce a new combined compensation structure that includes direct and indirect parts of a whole compensation package for software developers. We have described the execution procedures and analyzed the possible issues in the implementation. We used spftware developers from software service companies of Chengdu Tianfu Software Park in our case study for this paper.Our conclusions include:1. Analyzed the compensation policy in software services companies and verified the feasibility and necessity of implementing cafeteria compensation.2. The effectiveness of the compensation package should be measured by how much the employees are motivated. It is difficult to maximize the stimulating effect on a diversified group with a traditional, fixed pay structure. This paper examined the cost and benefit from fixed and flexible components of the compensation, and then designed the basic approach to implement the compensation policy.3. Introduced two approaches under the direct compensation centric structure: Family oriented - secured compensation and Family oriented - aggressive compensation structure. We also introduced other two approaches under indirect compensation centric structure: Career oriented- secured compensation and Career Oriented - aggressive structures. We listed common factors for people with different backgrounds to make choices among the different payment structures.4. Examined the constraints of implementing cafeteria compensation, and the limitations introduced by the current state.