Research On The Incentive Compensation Of Core Employees In Changchun Cigarette Factory

With the continuous deepening and promoting of China's reform and development to the tobacco industry, at present, tobacco companies are speeding up the establishment of incentive-based paying system reform. Early in 2003, "Economic Daily" quoted Wang Dongjin's speech, who's the vice minister of Ministry of Labor and Social Security in China. When he talked about the reform of paying system, he stressed that we should stand on the strategic level of human resources to design a strong incentive paying system so as to attract and retain qualified personnel, mobilize the enthusiasm of talented people and inject vitality into the development of enterprises. At the same time we must foster and establish the paying concept of a modern enterprise. In accordance with the requirement of National Industry and Information Technology Department, based on the guideline of China's tobacco industry, i.e." Category management, scientific positions setting, clear responsibilities, strict checking, payment implementation". This article will conduct a preliminary discussion on how to design an incentive-based paying model at Changchun Tobacco Company.The tobacco industry is a monopolied industry, in such particular context, the economic benefits of Changchun Tobacco Company increases continuously and rapidly. However, the corresponding upgrade of the management level is relatively slow, especially in human resources management many problems expose themselves--the professional idea and behavior of faculties appears weak; number and structure of positions are unreasonable; quality and academic level of staff seems obvious low as a whole; the company lacks more systematic training systems; Talent operating mechanism and management strategy fall back, and the like. These problems have become a serious obstacle to the company's development. According to the requirements of the State Tobacco Monopoly Bureau to carry out reform of the employment distribution system, companies would just take this opportunity to reform the mechanism and systems, re-build a new paying system to ensure the scientificity and inspiration of the incentive paying system, therefore, the company can develop healthily and rapidly at a higher level. The core staff is a valuable asset and the key to company. The definition of core staff should be based on long-term strategic human resource planning. Changchun Tabacco Company core staff can be divided into management, professional technology and business, the three categories. They have better performance, either stress the importance of material interests, or value the spirit of encouragement. They also have distinct personality characteristics. They need a higher income, scientific performance evaluation system, well-being emotional communication, a wide range of incentives and objectives that fit into their development. Company should focus on the needs of the core staff while regulating payment plan.From the results of questionnaire, the core staffs of Changchun Tobacco Company are not quite satisfied with their current salary. The main reason is that the company's paying system is still in use of the paying system of the state-owned enterprises under plan economy, the unreasonable paying system design goes against the development strategies and business goals, more payment modules but smaller absolute value, focus on the incentive pay system is not prominent, and the capacity of incentives decentralizes. the module of paying system are short of the support of necessary basic management system ,or relative management system is inadequate or operated improperly, the performance salary of enterprises still implement the past evaluation on virtue, ability, diligence and achievements , the objectivity of the evaluation results is poor, the company only adopts single payment system on the basis of position, which lead to a situation that the staff such as technical staff have no other ways to promote their salary except the officers and above ,thus results in the contradictions on salary between managers and non-management staffFor the formation of incentive payment for the core staff of Changchun Tabacco Company, the main job is to implement position performance payment system. The salary mainly consists of position salary + performance related pay + subsidies, the general requirements are "Category Management, Scientific position setting , clear responsibilities and strict checking and implementing the reward for performance, "which are the five steps that the reform of distribution system needs as well as the general requirement of the reform, the 5 progressive steps are related to one another and reinforce each other, the order can not be reversed, any procedure can not be missed. "Category management, scientific position setting, clear responsibility" is to establish a scientific management system of the post, change the management of identity management to jobs. "Strict checking" is to establish a sound performance evaluation system, which should be designed in line with the current situation of company management to carry out scientific and reasonable evaluation index system, through the assessment, to better reflect the value of employees so as to achieve the company's development strategy. "Implementing the reward" is to establish a sound modulation mechanism to adjust the performance payment system and job salary, the adjustment of income to employees'income must be based on the company's benefit and nation's macro-control policies.Eventually, incentive-based payment requires the complete support of philosophy, organization, and the relevant system, needs to absorb the advanced experience and scientific theory, in particular the reform experience of other tobacco companies to carry it out scientifically, the implementation process should be in consistence with the goal and timely corrected if there are any faults to avoid a greater degree of deviation, thus to achieve continuous improvement.