An Optimization Plan For Compensation System Of Baotou Iron And Steel Group Company

Compensation is one of the critical matters in management of human resources. One reasonable and effective compensation system can not only effectively stimulate the enthusiasm and initiative of the staff, urging them to use their best effort to work for the target of the company thus increasing the company's efficiency, but also attract and keep in the company the high-tech and highly skilled as well as outstanding administrative personnel required by the enterprise under such an environment where competition to have such talents is becoming increasingly fierce.In reformation of state-owned enterprises, it has become an important task as how to attract the talents, keep the talents and inspire the staff to work for the targets set up by the company. Therefore it is of far reaching importance for the state-owned enterprises which are being reformed to design and establish a set of scientific compensation system suiting to the actual condition of the enterprise.Baotou Iron and Steel Group Company is one extra large state-owned iron and steel making enterprise. With updating and modification of the equipment and regulation of the industrial structure in recent years, its production capacity has been increasing substantially, and as a result, requirement of the company for management of human resources is becoming more and more strict. Whereas the compensation system, as core of human resource management, plays the decisive role in realizing the strategy, attracting the talents and improving efficiency of the enterprise etc., it becomes obvious that the existing compensation system of the company is becoming more and more inadequate under the new environment.This article, base on the theory of compensation management and design, makes an analysis on present status of the compensation system of Baotou Iron and Steel Group Company and proposes an optimization plan against the existing compensation system of the company. It mainly focuses on a study of the method of operation for evaluation of the station value and a design of compensation-point-of-station & skill.First of all, the article makes an analysis on the main problems in the existing compensation system of Baotou Iron and Steel Group Company through study and research of the existing compensation system of the company and analysis on the result of investigation on satisfaction of the staff to the compensation paid to them. Secondly, it designs, according to the human resource development strategy of Baotou Iron and Steel Group Company and by using Hay Evaluation Model to have quantitatively analyzed all the stations of the company, layers and levels of stations as per the result of evaluation, and then gradually proposes an optimization plan as compensation-point-of-station & skill. Finally, the article makes an analysis and summary on the desired result of implementing the plan and suggests measures taken to ensure successful working of the plan as well.