A Power Company Pay System Reform Discussion

As an important part of human resources management, salary system plays a very important role in attracting talents, retaining talents and encouraging talents. China's state-owned enterprises have made great achievements after over twenty years' reform and development, but the existing salary system of many enterprises is not very reasonable yet. In the face of severe talent contests with a lot of foreign enterprises, how to reform the salary system and play its encouraging role becomes an important issue for the state-owned enterprises to increase their competitive power. This essay demonstrates how A Electric Power Company shall reform and redesign its salary system so as to face the contests and grasp the opportunities. This essay comprises four Chapters. Chapter One mainly demonstrates the necessity for A Electric Power Company to reform its salary system. This chapter first introduces the market situation and opportunities that A Electric Power Company is facing, and then demonstrates the existing problems of its current salary system and definitely indicates the necessity to reform its salary system. Chapter Two introduces general theory of salary system. This chapter mainly introduces the theory of human capital and encouragement related to salary system as well as the development and change of salary system, and indicates the best salary system at present——Overall Salary Management System. This chapter also introduces the relative principles and policies that shall be followed for salary system design, so as to establish the theoretic basis for reformation of salary system in A Electric Power Company. At last, this chapter brings forward the basic thought of A Electric Power Company in reformation of salary system, i.e. adopting Overall Salary Management System and replacing Basic Salary System with Position & Achievement Salary System. Chapter Three introduces the details of the salary system reformation of A Electric Power Company. This chapter works out the detailed scheme design for the salary system reformation of A Electric Power Company. It detailedly introduces the composition, distribution course and calculation ways of Position & Achievement Salary. It indicates that Position Salary shall be determined through position analysis and evaluation as well as salary investigation at other companies; and Achievement Salary shall be determined by estimating the achievements of employees. Chapter Four indicates A Electric Power Company shall legally optimize its salary system. Legally optimizing social security system and trying supplementary enterprise security system such as enterprise annuity, it means to carry out active welfare scheme to make the salary system of A Electric Power Company more comprehensive.