Design Of Compensation System On Incentive Oriented Of LQ Company

More and more enterprises realized the importance of talented people's competition, and realized that it is the core of market competition along with the intensified marked competition. How to establish an effective system to attract,retain and incentive qualified personnel has been one of the main study topics for all the modern enterprises. And it is an important way to establish an effective compensation system that has competitive and incentive, and that adapt to the characteristics of the company and the business through compensation administration. In the ground of the transition of the economy and the reform of the allocation system in China, our state-owned enterprises have found many problems in their compensation administration and it's system in their practice:the high loss of personnel because of the lack of competitiveness in compensation system; lack of fairness leading to irrational in the distribution of wages; dissatisfaction of staff to the company owing to the invalid link of the company's compensation system to it's performance and incentive appraisal. Therefore, how to establish scientific and reasonable compensation system in small and medium state-owned enterprises is the key study point of this article.In 2001, the Construction Group of S province set up LQ company, it's business is in the roads bridges and infrastructures. After nearly a decade of rapid development, LQ company has become a company which has an annual production value about nearly billion yuan. According to the deeping of social-economic market-oriented system, there are many problems have been found in LQ company's HR administration, especially in compensation administration, and it has become the choke point of sustainable development of the company.This article focus on compensation system studying and designing for LQ company based on the discovering and analyzing problems during the diagnosis process for the fomer compensation system of the company. At the same time, the basic theory of compensation administration and valuable experience in lots of enterprises were referenced and shared during the study depended on the wide investigation and information collection. First, the article studied the background, the significance and the methods of the topic. Second, the article introduced the related theory of compensation administration. Third, the article analyzed the reasons of problems about the company's former compensation administration. Forth, according to counting and analyzing the data which had been collected by staff interview and investigation, the compensation administration was redesigned with detail. Fifth, the article introduced the methods which can guarantee the system could be carried out. The last, the article concluded the study.The author hope that the study of this article can provide some references for compensation system design to other small and medium state-owned enterprises.