| In the beginning of2010, local governments in different city of China were raised the guide line of minimum wage, while "seasonal labor shortage" was happened when Chinese New Year coming, the enterprise were face the challenge how to hire blue-collar workers and how to retain them. Blue collar workers’high turnover keeps in recent years. Talent shortage is change from top talent and key talent to the low lever blue collar technicians. On the other hand, with the new generation of blue-collar workers start to work, their understanding and requirement of job has changed rapidly. Company could not retain them use traditional ways. In addition to well compensation and benefits, recognition e, respect and career development are concerned by young generation. So, the enterprise should use total rewards as more comprehensive, flexible, humane C&B strategyFirstly, this paper makes analysis of the current domestic labor market of the blue-collar workers, while compare of the new generation and the old generation of blue-collar workers intergenerational differences. Paper also make study the concept of total rewards, total rewards strategy, incentive theory. On base of analysis and study, make a conclusion that total rewards strategy is the most effective way, it consider incentive practice and philosophy from the perspective of the whole staff, it is the comprehensive ways to let manager attract, motivate and retain employees.Secondly, take company H as example, through the H company’s human resources management SWOT analysis, research the development of blue-collar workers and salary management situation, combined with blue-collar salary satisfaction surveys and analysis of engagement,also including the company’s development strategy, this paper found the problems of current blue-collar employee C&B system.Finally, under the guidance of total rewards thinking, this paper make optimization design of C&B system from the compensation, benefits, work-life balance, performance and recognition, development and career development those five aspects of the H company’s blue-collar workers. Make them rights be guaranteed, ability be improved, personal be cared as a total rewards policy, in order to better attract key employees, retaining high-performing employees, but also improve the company’s competitive advantage and enhance employee engagement. |