LU Company Compensation Scheme Design

Along with the unceasing development of global market economy and the knowledge economy, produce market competition is more and more intense, the change of business environment forces enterprises to take the market-shift as the guidance, combining with their own situation and the resources, to carry on the management, product, technology and strategic reform positively. In these gigantic changes, the human capital investment reform is very important. As one kind of the important management tool, how the compensation system displays its effective encouragement to the human capital has a profound practical significance, and its market competition strength may help the enterprise to obtain outstanding talent person which can create competitive advantages. How to make the compensation strategy relating with and supporting enterprise's management strategy, also withstand the pressures come from the society, the competition and the legal laws and regulations, to design a compensation system with both the market competition strength and internal drive function, is an important question put in front of the human resources manager.This article aims to discover and study the problems and unreasonable phenomena in the compensation systems of human resource management in most of the LU Company, by using modern analysis and research tools from some HR management theories. By introducing the concept of broad-banding compensation, and considering a compensation system on basis of skill,and qualities, this thesis is to establish a suitable, systematical, scientific compensation system that can urge the staff to manage, develop and promote automatically through the concept combination of compensation and inspiration. Such a compensation system can enhance the staffs satisfaction, loyalty . After all clients , they can not only produce benefits for the company, but for the whole country also.