The Re-design For Q Company’s Compensation System

With the growth of the modern economy, human resources has become one of the most important factors in determining the competitiveness of enterprises, and has become the decisive means for enterprises to improve competitiveness and sustainable development capacity. As compensation management is an important part of human resource management system, whether its regulation and system can advance with the time affects moral of the employees, the process of modernization of enterprise, and more importantly, will play a key role in cultivating and keeping a company’s competitive advantage. The design and implementation level will have important long-term effect on an enterprise’s development.This thesis takes "achieve internal equity and incentive, keep external competitiveness" as the goal to re-design and improve the compensation system of Q company, and completely redesigned and improved the compensation system of Q company.Based on the basic theory of the compensation management and the situation of Q company, this paper uses the methods of enterprise information collection and analysis, compensation survey, and analysis on compensation current situation to analyze the status quo of Q company’s compensation. Several problems were found in the compensation system:(1) lack of fairness in compensation allocation;(2) lack of incentive;(3) post salary and contribution does not match;(4) lack of market competitiveness.The main work of the improvement and redesign of the compensation system is as the following:(1) clarify the compensation strategy and goal to determine compensation tactics;(2) focus on difference between positions, different compensation content, and higher performance compensation;(3) design position salary with multiple levels.Compensation system’s redesign and implementation will keep Q attractive to high-level talent in the fierce market competition, will stimulate high moral of employees to fulfill their own value, and thereby contributes to the rapid and healthy growth of the enterprise.