Research On The Employees Sense Of Equity And Payment Satisfaction Under The Confidential Salary System

Payment management is a very important module in the management of human resources, and payment system is also a vital part of modern enterprise system. Payment is related to the immediate interest of employees, and plays an important role in improving employees’ enthusiasm, motivating their initiative and improving the efficiency of enterprises. Furthermore, good payment system can attract and retain the talents.There are two major systems, namely public and confidential salary system. Payment under public salary system is almost transparent, for enterprises have a detailed accounting standard. On the contrary, employees are kept in the dark each other about the information of salary under confidential salary system. The latter largely originates from modern capitalist states where salary is viewed as a part of individual privacy which is highly stressed. With the normalization of the enterprises in our country, many companies begin to implement confidential salary system. Every coin has two sides and enforcement of this system in China evinces benefits as well as defects because employees will easily doubt the justice. Through empirical research, this paper analyzes the relationship between employee’s sense of payment justice and payment satisfaction.Based on the sense of equity which effect employee’s payment satisfaction, this article analyzes the factors from three dimensions:First, input factors (education, work-related knowledge, work-related certificates, work capacity, work efficiency) and payment satisfaction; second, production factors (basic wages, bonuses, promotion opportunities, endowment insurance, capacity building, housing fund, daily benefits, birth injury and other insurance and welfare types) and payment satisfaction; third, environmental factors (pay level, pay increase, pay structure set-up, salary assessment procedures, overall level of management, effectiveness of supervision, promotion procedures and internal environment) and payment satisfaction. Results show that employee’s payment justice and payment satisfaction have a significant positive correlation in the enterprises under confidential salary system; strong sense of equity is driven by the factor of input and output and the corresponding salary satisfaction is high; however, the overall satisfaction of pay is weaken by environmental factors. Thus it concludes that environmental factors have a very significant impact on sense of payment satisfaction in the enterprises under confidential salary system.From data analysis it also shows that there has significant correlation between background information like gender, age, education, seniority, working time, professional type of job etc. and salary fairness. Under the confidential payment system, generally men feel less sense of equity from output factors than women, while women pay more attention to environmental factors; the youngest favors a more equitable salary; people with comparatively higher education and lower degree feel more equity, most undergraduate students feel a little unfairness; workers with shortest working age sense the most fairness; staff at two levels in the tenure of the post for a shorter and longer period of tome easily feel more fairness; type of profession has little affect on payment fairness; technical staff think they are the most unfair group, while professionals are the most satisfied.In addition, under the confidential salary system, wither regard to either the input or output factors or environmental factors which influences salary satisfaction, most worker select the "general". The following part mainly compares the data at the two extremes. As for the factor input, most people select "general";12%worker think that they don’t paid for their efforts; people less qualified with low education are more likely to satisfy with the payment; for their factors of input, people who are satisfied with their input are obviously not satisfied with wages, bonuses, benefits and other reward factors; compared with others, people with higher wages, bonuses and other rewards, hold higher pay satisfaction; there are a lot of colleagues with higher pay satisfaction compared with other companies; most people approve their working environment and payment.In summary, this study puts forward the following recommendations accordingly, such as choosing the payment system according to its own circumstance; strengthening equity of input and output, planning careers, enhancing communication, conducting periodic opinion survey; reinforcing the fairness of the external environment, stressing the accuracy of assessment, specifically evaluating posts, keeping the management of compensation transparent, focusing on the way of payroll, monitoring and differentiated management.