St Compensation Management System Study

The Compensation Management is an essential piece of Human Resources Management, and is one of the key factors which help the enterprise attract, develop, motivate and maintain talents effectively. By fulfilling a competent, motivating and effective compensation management system, enterprises can reward talents contributions objectively and fairly, which is the most important for both of employee and employer.Relevant theories and methodology of compensation and incentives management and development was adopted to analyze and point out the advantages and disadvantages of ST company existing compensation system, based on the comparison with market salary survey reports; Meanwhile, we're seeking to explore the pay system and solutions corresponding with the actual situation of ST company, the industry and the market to motivate the most valuable asset - people with the limit resources. Analysis was done to following angles:Compensation strategies and philosophies;Pay mix or components;Salary scale;Competiveness of compensation;Incentives.The problems encountered and relevant reasons were elaborated as well. According to the market data and information analysis, we proposed the improvement plan and evaluated the new system as following:The compensation strategies is in support of and linked to business strategies and initiatives;The new system helps rewards oriented in HR management;The new rewards system is vital to talent retention, the turnover rate has been brought down accordingly;Simplified pay mix assists the communication of compensation information;The incentive plan has been built up to induce the corporate vision and pay for performance philosophy.A few suggestions on continually study are provided to those who have the responsibilities of planning the rewards and compensation management system for the enterprises.