Research On The Salary System Of Technical Staff In M Company:Based On The Competency Model

Along with rapid development of the auto industry in China,the auto spare parts industry is also expanding day by day.The promising vehicle sales market brings not only opportunities to the auto spare parts industry,but also challenges and pressures.The ever-increasing demands from the market have asked the competent auto parts enterprises to strengthen their production line and develop innovative products,so as to improve their market share rapidly.Against this background where production and operation are both accelerated in a large scale,the enterprise need recruit more staff to meet its business development.Moreover,the enterprise also expects higher over the quality of the personnel they hire.While in an auto spare parts enterprise,the major force for technology innovation consists of technical staff working on product design & development,process control,process optimization,system analysis,sample test,quality test,equipment maintenance and so on.These talents are in quite shortage in the industry.So they have become core resources the auto enterprises compete for.How to attract and keep these talents is one of the most important topics in the enterprise human resources management.Salary,any kind of payment that an employee obtains out of the service he/she renders in an organization he/she works in,is a very important tool to attract,keep and motivate the employees.As for the enterprise,employees' salary is not only a part of its financial cost,but also an important component of its human resources investment.It has direct impact on employees of what kind of quality will be attracted and kept,and to a large extent decides how much the employees are motivated in their work,which finally influences the achievement of the enterprise's operation target.As for the employees,salary means not only the life security for themselves and their family,but also a way to prove their talent,value and contribution they have made.As an important function in the enterprise human resources management,more than art,Salary Management is also a science,which directly affects the strategic management of an enterprise.So in salary design,apart from the comprehensive consideration in financial cost control,the salary itself shall efficiently help the enterprise to attract,keep and motive employees,especially those core talents on technical positions.These talents are usually of high quality and willing to do challenging work to realize their value.So in salary design for these talents,their traits shall be considered to make full use of their working enthusiasm and initiatives.Intraditional salary design,salary is determined based on a single factor,such as position,seniority and performance.For example,in a salary system based on position,the position usually directly decides the salary,but since the promotion opportunities are limited in a horizontal organization,the employees will be quite constrained in their salary increase.In a salary system based on seniority,the working years of an employee will decide his/her salary.Such mode has negative impacts on younger employees and may lead to idle behaviors of elder employees.While in a salary system based on performance,to obtain more salary,the employees will focus too much on the result while neglecting how the work is done,which will have adverse impact on the enterprise's sustainable development in the long run.Therefore,to avoid those unfavorable situations analyzed above,this thesis introduces the concept of Competency Model.According to the actual culture of an enterprise,its operation status,employees' job nature and position characteristics,the thesis concludes and classifies the elements that can differentiate an employee's excellent performance and regular performance.By collecting,analyzing and integrating the data in a scientific way,the thesis sets up a Competency Model and makes effective evaluation to the competence of employees.After framing out the salary plan as a whole,the thesis determines the specific range of salary level and matches up the employees' salary with the according salary range based on their evaluation result.In such salary system,the dominant role of position is reduced and the reasonable salary distribution will fully motivate the employees in their work,and also in improving their skills and professional competence.To better state the process and method for implementing the Competency Model in the salary management,taking company M as instance,the thesis analyzes the company's basic status,human resources features and its current salary system,and then collects the key competency elements influencing the technical staff's performance to set up a Competency Model for the technical staff of company M.Upon this Competency Model,the thesis discusses the general process of employee competency evaluation in a theoretical way.Based on the evaluation result,the employees' salary grade and variation range are re-defined,resulting in a broadband salary system with less grades and wider range of variation for each grade.The thesis brings concepts of Competency and Competency Model into company M's original salary system featuring fixed salary for one position,which optimizes the current salary structure for the technical staff in company M.The salary structure is dividedinto fixed salary and competency salary,which maintains the stability of original salary system but increases its incentive function.Besides,employees' satisfaction in salary will be improved and the risk of salary reform will be reduced.In this thesis,the salary grades are made according to the employees' competency level.In this way,when fulfilling the employees' self-development,the salary system also makes the employees focus more on their vertical or horizontal development in their professional field.So at the same time of improving the employees' competency,the company targets are also achieved.Last but not the least,the thesis draws conclusions and expectations regarding implementation of the Competency Model in the human resources management,especially the salary management,in order to provide some reference and inspiration for salary design in other related enterprises.