The Relationship Between Total Rewards And Labor Absorption Of Non-state-owned Manufacturing Enterprises:From The Perspective Of Labor Productivity

Manufacturing plays a decisive role in social and economic development of one country and makes great contributions to employment,output and technological innovations of the whole society. With old demographic dividend disappearing, severe shortage of labor is formed, which results in unsustainable advantages of low labor costs of manufacturing industry. The labor cost is further pushed up by expanding demand for high-qualify labors because of industrial upgrading of manufacturing. However, profit model, "depressing wages--increasing profits--expanding the accumulation of capital--absorbing more labor", which is adopted during the development process of non-state-owned manufacturing fails to inspire labors by salaries and leads to the loss of staff’s enthusiasm in working and frequent conflicts between labor and capital, making it more and more difficult to attract, motivate and retain employees. This means that this kind of profit model is not able to meet the connotative development requirement which aims to improve productivity by means of enhancing labors’ quality. Therefore, how to stimulate and absorb labors on the basis of their own characteristics in the new normal has become a problem that must be solved for non-state-owned manufacturing enterprises.The second generation Total Rewards model, put forward by Worldat Work, has expanded the concept of compensation to what employees think of value, including economic and non-economic things. This article finds out China’s Total Rewards structure and specific composition by analyzing 494 questionnaires of 71non-state-owned manufacturing enterprises. On that basis, hypothesis that there are significant differences in Total Rewards factors preference for employees with different characteristics at individual level is posed. Furthermore, relational model of enterprise-level Total Rewards perception, labor productivity and labor absorption is built. Before and after controlling the income levels, respectively using mean comparing method and dummy variable hierarchical regression method, both the difference of preferences for the Total Rewards factors preference of employees with different characteristics and the intermediary relationship between five Total Rewards factors,labor productivity and labor absorption are proved. The ability of Total Rewards management to keep enterprise staff motivated and innovative,improve production efficiency and promote better labor absorption is also proved.Therefore, it is recommended that non-state-owned manufacturing enterprises shouldchange management ideas and implement humanistic management, to conduct distinguish management of Total Rewards under the premise of guarantee of employees’ monetary income.The innovation of this paper lies in exploring Total Rewards structure in the context of China and discussing action mechanism of five Total Rewards factors on labor absorption. The gap of deficiency of predecessors’ comprehensive study on compensation, profit and labor absorption is filled. It has provided a theoretical basis for implementation of Total Rewards in non-state-owned manufacturing enterprises and has realized mutual exploration from macro to micro aspects, making macro full employment be laid on the firm foundation of improvement of microcosmic economic benefit. In addition, this article takes a deeper look at the effects of demographic variables on the Total Rewards factors preference and their differences after controlling income levels. Compared with the study on independent influence of each characteristic variable, it is certainly of science and rationality.