AB Company Strategic Compensation System Analysis

Strategic compensation system has become an important part in human resource management, and its establishment plays a tremendous role in encouraging the employees’work enthusiasm, improving work efficiency and saving the cost of human resources management. Under emphasized consideration, the strategic compensation system should be designed to match with the enterprise strategy, to ensure that both can adapt to and promote each other well, in order to attracting and keeping the talents through scientific and effective compensation system, to highlight the enterprise’s core competitiveness through the advantage of human resources and to promote its development strategy and goals.After nine-year development in the real estate industry, AB Company has become the main force of the real estate market in Chengdu. Besides operating a good main business, AB Company has gradually setted foot in real estate related industry and gained satisfactory achievements by constantly broadening the management ideas and strengthening its own advantages, which lays a solid foundation for the next step development of the company.Based on the premise of strategic development targets of AB Company, referring to some relative literature, as well as through the way of visiting experts to consult the views and suggestions of relevant professionals, also combining the AB company’s existing staff structure, organization setup and compensation measures for the actual situation of human resources management, this paper diagnoses the problem of the company exciting in the original compensation system by using strategic management, human resources management, compensation management, performance evaluation and other related theories. The author focuses on the analysis of the high proportion of fixed compensation in the whole salary, slow growth of remuneration, neither ability oriented nor strategic matching, etc, and addresses these several questions to be solved. Through the analysis of these existing problems, the compensation system is redesigned to match the company’s development strategy. Several suggestions are presented, such as renewing the position evaluation, adjusting the performance evaluation methods, and improving the staff promotion system by integrating the enterprise strategy into compensation system. Specifically, the suggestions are mainly about setting the enterprise development strategy and business objectives as the guidance to reevaluate the entire job positions on the basis of competency, to establish performance assessment method combining with individual and group motivation, to distinguish the assessment between the high-level management personnel, the professional, the technical personnel, general administrative staffs and sales personnel, to combine employee’s career development plan with the enterprise development strategies, as well as to establish "Two steps" career development mode. Lastly, the author also makes suggestions to the problems existing before the implementation of enterprise strategic system, key factors during the implementation and assessment method after the implementation, briefly analyzes how to strengthen the supervision and guarantee smoothly carrying out the new payment system during the implementation, and summarizes some inspirations during the design of the AB Company strategic compensation system.