Sme Core Staff Salary Incentive Model

Since the reform and opening up, especially in the new century, China's small and medium enterprises continually grow up and become an important force in China's national economy and social development. It is playing an increasingly essential role in improving economic, employment, innovation and people's livelihood. However, in the face of the international financial crisis, SMEs confronted with great difficulties due to their own characteristics. Being lack of scientific management system in cultivating and using talented staff in SMEs, it occurs serious operational difficulties because of the loss of its talented staff.In this paper, the author designs the questionnaire focusing on the characteristics of SMEs and analyses the dimension of compensation incentives based on the theory of compensation incentives. Through anonymous survey in five manufacturing SMEs, 60 questionnaires were distributed and recovered, excluding 9 invalid questionnaires, there are still 51 questionnaires valid and the ratio of efficiency arrives up to 85%.According to the classification and extraction, this paper extracted seven compensation affected factors, including bonus compensation factor, welfare compensation factor, sense of achievement factor, work environment factor, a fair and competitive compensation factor and fixed-income factor. It also analyses the relationship between population variables and these seven compensation incentives factors.This research shows that:there are significant differences in gender,age and the nature of work analyzing those compensation incentive factors. Through the study of the paper, SMEs should customize the personal incentive compensation program based on the different characteristics of key employees, to obtain a best result; at the same time, SMEs should strengthen emotional incentives, pay more attention to family ties and cultural construction to keep a sustainable competition capability and better face the plight of development.