The Optimization Of Compensation System For S Company

2012is the extremely difficult time for the export-oriented enterprises in China,especially for the small-and medium-sized manufacturing enterprises. On the one hand, theorder is reducing and the dollar is depreciating; on the other hand, the labor cost is increasingand Renminbi is appreciating. These factors are compressing the profits of the small-andmedium-sized enterprises who face the risk of the bankruptcy anytime. In order to survive inthe violent competition, these enterprises must improve every aspect of the management. Howcan the enterprises control the labor cost well, but also be able to retain the key talents in thisdifficult period, and meanwhile motivate employees to tide over the difficulty with and theenterprises? To optimize the salary system is the most efficient method.S company is the labor-intensive factory with the annual output of20million Yuan. Itspecializes in manufacturing of the spraying speaker box. Most of the processes are finishedby hand. As it cannot be replaced by the machines according to the present technology, thequality and the quantity of the products all depend on the skill of the technical workers. Nowthe production workers take the piece wage, and non-production workers like the qualityassurance workers, the packing workers, the warehouse-keepers take the hour wage. Othermanagement staff takes the fixed salary. The workers on the important positions are taking thepiece wage, so the reasonability of the unit price for the piece wage is the main labor andmanagement problem for the factory now. Sometimes the going-slow or even the strike willhappen if the workers think the unit price is unreasonable. Also, how to balance the piecewage, the hour wage and the fixed salary need be resolved.This thesis will take S company as the studying object, apply the theoretical knowledgeof the compensation management and refer to various types of literature at home and onabroad and the counseling program in the same field, to diagnose, analyze and redesign theexisting salary system of S company through interviews, questionnaires, literature researches,etc. Combined with the company’s business strategy, the company’s compensation strategywill be determined. And meanwhile it will be taken as the guide to determine the salary level,adjust the salary structure, analyze the position and value, decide the unit price of the piecewage, etc. So that it can optimize S company’s salary system, motivate the employees’enthusiasm for work and enhance the competitiveness of the company.