| S Company is an automotive component manufacturing JV. In thisthesis, several issues of compensation system in S Company have beenstudied. As a typical automotive component manufacturing firm, S Companydepends on her stabile basic level talents, consisting of salesmen, technicalstaff and technical workers, to fulfill the achievement of expanding marketshare, accelerating new product development and enhancing productivity.However, a recent satisfaction survey on salary level shows that the overallsatisfaction of3basic level talents is quite low. Therefore, the proportion ofquitting among basic level talents is quite high, which is minimizingproductivity and is neutralizing implementation of business strategy. Thecurrent compensation system is evaluated and existing causes are highlightedaccording to above mentioned phenomenon.Based on SWOT analysis tool, organizational behavior and humanresource management theories, the problems in current compensation systemare analyzed. As for basic level talents, compensation strategy withenhancing external competitive power, variant compensation systems andspecial welfare policies are raised, aiming to solidify the employee team, tomotivate basic talents and to improve the general competitive power of S Company.Taking the compensation statistics of basic level talents among1stlevelcities and automotive industries as reference, the target of compensation levelfor3basic level talents is set at PC50of1stlevel cities. Relative optimizationconcepts are raised according to different properties of3basic level talents.As for salesmen, basic salary is designed per sales and technical skill.Different annual bonus for OEM and AM salesman is raised. Welfare relatedto personal insurance and car allowance is rewarded. As for technical staff,basic salary is designed per broad banding. Special award plans are provided.Special insurance, housing allowance and diploma education are rewarded.As for technical workers, basic salary on pay-for-skill is designed. Annualbonus and golden-suggestion award are provided. Insurance and professionalcertificate training are rewarded. In order to maximize the function ofcompensation system, it is to be combined with performance assessmentsystem and to be enriched by firm culture.The feedback shows that the optimization concept of compensationsystem is highly accepted by basic level talents. The sales performance of1stquarter in this year is also quite inspiring. By end of this year, as forecasted,the implementation of compensation system will improve the companyperformance and will realize business target with achieving the propulsion ofgeneral competitive power for S Company. |
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