Compensation Management Of HG Co. Ltd

With the development of globalization and evolution of market-oriented economy,the movement of personnel becomes more and more frequent. Qualified personnel have become the key factor for the enterprises to maintain the competitiveness.And proper compensation plays an important role to attract new talents and maintain the employees. An effective compensation system could make employees working more actively and so that improve the performance and even help to reach the company's strategic goal.Therefore the compensation management is one of the core content in the human resource system as well as in the whole company's management.How to make a good compensation system matching the strategy is an important issue faced by every company.HG Co. Ltd is a SOE in the infrastructure sector, mainly dealing with high-way, long-span bridge construction and management.This article conducted the analysis of the HG's compensation system and found that the existing system had several problems. It didn't match the firm's the strategy. It missed the requirement of equity and couldn't show the value of the position. Personal hard working and contribution was almost irrelevant with compensation or promotion. Meanwhile the welfare is quite limited, etc. Based on the theory of compensation strategy and total compensation system, together with the reality of HG, the article had designed a new compensation system which had the following aspects.It set the senior executives and project management team as the core human resource;distinguishing 3 types of work including executive management,project management and production operation. It introduced the annual salary system, position performance wage system, and project performance wage system, setting the wage special zone and also adding the company welfare. Under the principle of unified leadership, flexibility, mandatory requirement,and progressiveness,it suggested that HG founded the compensation management committee, introducing the communication and supervision mechanism, improving the performance assessment,setting the base salary, developing employee training program. A dynamic administration and timely adjustment would be needed in the new compensation system. Now SOEs encountered some problems on compensation management.This article analyzed the problem of HG Co. Ltd and provided a solution which was well targeted, representative and valuable.Hopefully it might shed light on the settlement of compensation management of SOEs, especially in the infrastructure sector.