Optimisation Of The Compensation System For CMCC Nanning In The Full-Service Operation

Along with the shrinking value of the telecommunication industry as a whole, which results from the development of telecommunication technology, the reform of the industry, the reshuffle of the enterprises, the intensified competition and the concomitant price fall, telecommunication companies are now faced by enormous pressure from full-service operations which is passed on to their employees in various ways. It has aroused a prevalent dissatisfaction amongst the employees, which even leads to a growing dimission rate, that the job-based reward under current compensation mechanism does not match the expanding workload and the exorbitant goals of the performance indicators. Consequently, the compensation system as a power tool to realise the company’s strategic objective has a great influence on the attitudes and behaviours of the employees while being a crucial cost item as it is of the company. An improvement of the stimulation effect of the compensation system is therefore not only key to the strengthening of the company’s core competitiveness but also essential to its harmonious and healthy development.This paper mainly examines the optimisation of the compensation mechanism designed for the front-line employees of CMCC, Nanning Branch in Guangxi (hereinafter referred to as CMCC Nanning). With the combination of a theoretical research, a case study and an investigation carried out on the employees’satisfaction through a questionnaire survey, this paper looks into the company’s status quo and the problems in the current compensation system for front-line employees of CMCC Nanning. Based on the status quo of the company and the existing research at home and abroad regarding the optimisation of compensation system, this paper discusses the construction of a new compensation system set to meet the demands of full-service development while embodying equity, competition as well as stimulation, with a specific optimisation plan proposed accordingly. Taking business development and employee satisfaction as indicators of measurement, the last part of the paper presents the implementation and examination of the proposed compensation system which aims at improving its compatibility with the company’s full-service development as well as the demands of the employees. The result of this study, which fully considers the demand posed by the full-service era on the practitioners in the telecommunication industry, helps to improve the comprehensive competitiveness of CMCC Nanning in the full-service contests with its contenders in the industry. This study is also expected to provide a reference and a demonstration for the optimisation of the compensation system for front-line employees of other telecommunication companies.