Optimization Design Of Salary System Of Y Consulting Company

The importance of consulting services has now been widely recognized. Consulting firms play key roles in various industries, relying on their competences in conducting systematic analytics, providing on-demand solutions, independent third-party services, as well as their ability to rapidly disseminate knowledge and technologies.As large-scaled Chinese State-owned-enterprises(SOEs) rapidly expand their businesses, the demand for consulting services is soaring. These SOEs have thus been developing arms of their own, providing expertise and experiences to facilitate business development. Nonetheless, due to a variety of limitations, SOE consulting firms are confronted with strong competition from their foreign and private counterparts, particularly in human resources, many are now finding it difficult to attract, cultivate and keep talents. Therefore, it is pivotal for SOE consulting firms to reform salary systems in order to strengthen their core competences. A healthy and competitive salary system could translate into improved competitiveness and sustainable development of an enterprise.On the basis of evaluating the background and importance of the above-mentioned subjects, this study introduces theories and practices regarding salary management, and assesses the market trends and principles against which SOE consulting firms are to reform their salary systems. In addition, this study takes company Y as a hypothetical case, analyzes the existing issues in its salary system, and proposes strategies and processes to redesign a system which fits for its operating environment and keeps it market competitive. The new system establishes two organizational hierarchies and floating wages according to employees’ administrative positions and professional credentials, which leads to impartiality and motivates employees. In addition, the new system also includes intrinsic compensation that provides better sense of identity and belonging.To summarize, this study introduces the safeguarding measures, elaborates the new system’s advantages, disadvantages and points of innovation. This study aims to provide insights for SOE consulting firms’ salary management.