The Redesign Of Compensation System For LD Company

At the end of2012, LD Company successfully went public by assets reorganization. It certainly provides a greater space for the company’s further development, but also brings some more challenges from the capital market. Unfortunately, the compensation system cannot adapt to the company’s demand for development as a result of the history and the system. In order to excite the employee’s initiative as well as attract and retain talents, it’s essential to redesign the compensation system.Based on all above, this paper briefly introduces related concepts and theories about the definition and composition as well as the function and pattern of the compensation, which provides theory basis for the redesign of compensation system.Next, given to the current situation about the company’s organization and human resources structure as well as the compensation system, this paper finds out some problems in the current compensation system by combining the methods of in-depth interview and questionnaire survey. The results are as follow:1. The compensation for department managers is apparently lower compared with other listed companies from the same region or industry, while which for the common employees’is reasonable. In the company, the compensation for those who are well-educated or titled is pretty low.2. The present post performance-based compensation system, as an empty title, doesn’t duly function.3. The current compensation system lacks scientific grounds.4. Equalitarianism tends to prevail in the current system.Thirdly, in consideration of the major goals, basic principles and influential factors of the compensation system, the present paper redesigns and elaborates on specific operations of a post performance-and salary points-based compensation system for LD Company. The new system features:1. Balanced consideration of differences in post, personality and team and individual’s performance through efficient communication and reasonable design;2. Impetus to team work and general performance of the company through links between individual’s salary and team and individual’s performance.Last but not least, the paper proposes supporting measures for the re-designed system in four parameters of organization, institution, culture and technology.The paper contributes to the future design of compensation system of LD Company and offers a reference model for other companies in the industry.