Competency-based Compensation Management Research

In the era of knowledge-based economy, human resource has become the important resource of the corporation. Corporation is facing global competition and turbulence environment. Competitive advantage will be obtained from the core talents, however, the competition of talents stemmed form their knowledge and competence. In order to be oriented to the environment, organization structure becomes flatter, and organization becomes more and more flexible. At the same time, the border of organization becomes fuzzy, employees need to improve their competence for meeting the need of other position. At this circumstance, human resource management focuses more on competence than job. Salary management also will be charged to focus on competence, because it is an indispensable part of human resource management As a result, competency-based salary management was born to make up the weakness of traditional pay system. It prompts employee to enhance their competence, improves the core competence of corporation, and pay more attention to the long-term development of corporation and employees.Researches on competency-based salary are not rich in our country, and fruits are not systemic. This text systematizes the former fruits, and proposes some own ideas. It tries to give a reference for corporation management. This thesis develops the systemic research from three parts, including establishing salary strategy, establishing salary system and analyzing the application. Enterprise should decide salary strategy at first, then the text researches the design process and methods on salary system. It mainly includes developing competence model, competence assessment, and designing salary structure. In the part of employees' competence assessment, it analyzes the element point method and fuzzy comprehensive evaluation, then it researches the design of broad-band compensation. Then, the thesis points out the premise of application, and analyzes an example. Finally, summarizes the whole text, receives the conclusion and perspective.