The Optimization For Compensation System Design Of Company T

Human resources have already become an important source of sustainable competitive advantages for enterprises. As a significant component of human resource management, salary seems rather important, especially in the environment with more and more fierce global competition. A proper salary system can mobilize employees' working enthusiasm, reinforce the sense of satisfaction and belonging, and consequently increase teamwork inside the enterprise. Proper and effective salary system plays an important role in realizing the strategic goal, improves competitive advantages and helps accomplish the long-term goals of the whole enterprise. Thus, studying the salary system of an enterprise has very important and practical point.This report, starting from management, combing both theoretical and practical examples, basing on the meaning, development and components of salary, has conducted a detailed analysis on company T's current managerial situation. This report has found out that company T now has the following problems in its salary system: frozen salary, lack of sufficient fluctuation and incentive, the dis-match of one's benefit and contribution, lack of effective approach for employees'career development. The current salary system for company T is only based on the employee's position while the company does not have sufficient management on the position systems. This makes the position based salary literally has no basement at all. All the above questions will make employees feel that "it does not make any difference whether I do much or little". Most Individuals have objections on the current salary system. If it goes on like this, employees'motivation will be seriously reduced. It is now necessary to design a new plan, which fits the organizations itself and combines company T's developing strategy and the situation it is facing, evaluate every position scientifically and develop a new and complete salary system. At the same time, in order to complement this new system, equipment must be updated too.Problems that arise from the mismatch of salary management and company's development can be solved through improving the salary system within company T. Reinforce the incentive from salary, unblock the promotion approaches, activate everyone's interest, let everyone build the spirit of devoting oneself to the company and finally achieve a win-win situation for both employees and the company.