Based On Competency To Enhance Smes Pay Incentives

Continued development and growth of SMEs in China, has become an important economic and social development force in economic prosperity, increase employment, promote innovation, improve people's livelihood and so on, is playing an increasingly important role, and thus get more people concern. However, according to surveys of SMEs in China relative to the average 7-year-old American small and medium level, the average life expectancy is only 2.9 years. Over the past 20 years, studies have found that small and medium enterprises is one of the most prominent of talent, a serious brain drain to contain small and medium enterprises to become the bottleneck of sustainable development. The fact that attract talented people to join in and retain qualified personnel-should be the competitive advantages of SMEs, while the key is motivation to solve personnel problems.An incentive mechanism is robust to attract, motivate, develop and retain talent is one of the most powerful tool. It is communicated to employees the value of business-oriented, so that the behavior of staff development in line with corporate strategy; for staff to create vision, develop a reasonable access to staff career progression more clearly the development objectives; to establish a fair environment for employees, to help SMEs to stay live core talents. This paper discusses the competency-based pay incentives to upgrade to improve the management of SMEs to provide a solution, hope that conclusions can solve small and medium enterprise development issues in effective ways.Previous salary incentives for competency limiting the use of a certain size and financial strength of large enterprises, SMEs remain in the method of inquiry is exploring stage, lack of adaptability of SMEs to build and empirical validation. The article on how SMEs can use the incentive pay issue a more in-depth study and research, the main focus on competency-based pay system to enhance the adaptability of SMEs to build the analysis of small and medium enterprises to focus on the past performance of employees and future performance-competency building incentives to enhance the design concept, highlighting both the cultivation and retention considerations, while taking into account the strategic objectives of SMEs, and affordability.This situation of SMEs and their remuneration from the issue of the beginning, comprehensive use of comparative analysis, quantitative and qualitative analysis of normative and empirical analysis, we absorb and learn strategic management, compensation management, human resource management, motivation theory and other aspects of the theory of knowledge, first introduced pay incentives to enhance the quality of content and competency-based pay incentives and research status defined, analyzed the problems and difficulties facing SMEs and compares the path to solve the problem, pointing out the scientific and reasonable competency pay incentives can effectively address the development of SMEs in growth stage management problems; followed by a competency model of the processes and methods of construction, building of SMEs to enhance competency-based pay incentives idea, put forward SMEs should pay attention to the implementation of the mechanism of the problem and its accompanying institutional guarantee. Based on the theoretical study, by 2008-2009 years, the salary of an enterprise in Shaanxi use of empirical analysis of incentive mechanism to verify the competency-based pay raise incentives for enterprises to improve staff competency, reduce staff turnover, and improving playing an active role in performance. However, the incentive pay is the initial attempt in SMEs, because of the short time in the concrete implementation also requires constant adjustment, another is this article was based on the individual studies, the mechanism for future use on the prevalence of SMEs need to be further analysis and research.