Study On The Improvement Of Compensation Management In CCT Company

In recent years, the development of the private economy is really significant. Under thepremise of dominated by the non-public economy, the current trend was supported andencouraged so that ownership economy will legally and reasonably use the productionfactors as well as fairly compete in the market. After nearly40years of development, Privateeconomy has gradually become the most dynamic part of China National Economy, andmade remarkable achievements. At present, the output of non-state-owned economy inChina has accounted for more than50%of GDP and70%of the GNP. Virtually, the privateeconomy has achieved outstanding achievements in the development of market-orientedChinese economy, and also provides clear direction for the employment of the whole society,as well as makes huge contributions to the economic system reform. Virtually, the small andmedium-sized private enterprises (SMEs) have become the important supporting pillar of theeconomy in our country, and also the key players with contribution to the social laboremployment and financial income increasing. Therefore, the importance of SMEs showsbetween the lines.Meanwhile, the rapid development of SMEs has also caused a lot of problems, whichare fraught with difficulty to resolve. The reasons for most private enterprises usuallyinclude small scale of economy, weak competitiveness, and unreasonable management,which result in low level of management, especially in compensation management. Most ofSMEs don’t fully understand the compensation management and even have no suitablecompensation system for their own companies. Regarding to enterprise development andemployees interest, compensation system as an important part of the incentive system, playsan irreplaceable role for SMEs in the market competition.In many SMEs, the mobility of employees is increasing, the brain drain problem isworsening, and the recruiting of good staff is also difficult. Among that, imperfectcompensation management has become one of the most critical factors. A reasonablecompensation system is really helpful for the development of the company’s humanresources system, can greatly save the company’s cost on recruiting, training and staffmobility and meanwhile dramatically stimulate the enthusiasm of the staff. The reasonablecompensation system is the key for the further development of SMEs. In order to promotethe development of SMEs in China and improve the market competitiveness of enterprises, the design of the compensation system for SMEs has to be optimized. Therefore, theresearch on compensation system of SMEs has the practice significance.By analyzing the domestic environment SMEs are facing to, we find that compensationmanagement plays a vital role in the realistic significance. From the brief introduction ofbasic concepts of compensation management and the analysis about compensationmanagement status of SMEs, some problems are confirmed, studied and further summarized.Moreover, the context also declared that compensation management in private enterprisesfails to play a very good incentive effect. Through the analysis of the CCT company, we findthe problems from the traditional compensation system. Based on relative analysis, weprovide perspectives and suggestions, and even propose a new design specifically for SMEs.In this paper, both theory and practice methods are used to carry on the research oncompensation management in CCT company. Via reading the international compensationmanagement theory and lots of studies reports, we analyzed the status and problems ofcompensation management in SMEs in detail, and proposed the countermeasure and designclearly.In sum, the key for the development of SMEs is to establish a suitable, reasonable andscientific compensation system. Now the development of SMEs is the most prioritized in ourcountry, so that the compensation management of SMEs is really important. Based on thisbackground, this paper used CCT company as an example to analyze and study thecompensation management. By the investigation on CCT company, we can provide anenforceable and suitable scheme for it. Hopefully, we can improve the compensationmanagement of SMEs, and provide a reference scheme as the reform direction.