Compensation System Optimization Of Medium And Top Management In LKYL

At present, the human resources development and incentive is becoming more and more important; the corporation orientated compensation has shifted from the pure cost to obtain high economic benefits through the enterprise investment. Therefore, the enterprise must build a highly effective compensation system to win in the market competition. From the perspective of medium and senior management, they are the key figures of reformation, strategic making, goal setting and the implementation of the strategies. They are the key talents of enterprises. Therefore, it is very important to establish attractive, reserved and incentive compensation system in LKYL, and which is directly associated with enterprise development and gains. However, from the enterprise strategy perspective, we must let medium and senior management compensation strategy adjust to enterprises’ development strategy to protect LKYL‘s strategic transformation and upgrading in the medical industry and finally achieve win-win.This paper introduced the development situation and enterprise situation of LKYL which is a company in medical industries, and which is based on the theories of compensation and incentive, and combined with the role and basic characteristics of medium and senior management. It puts forward a deep reason for shortcomings of management personnel in the current compensation system by the way of comparative analysis, interviews, surveys and analysis of the management’s compensation system, including compensation structure, compositions, and levels. Finally, combined with the enterprise strategy, performance incentive orientation, short and long term welfare incentive, internal and external fairness, and personal value it put forward optimum design of LKYL’s medium and senior management and give advice to the later implementation measures of compensation system.This paper designed a new compensation system for LKYL’s medium and senior management through a series of data investigations and pre-analysis and based on the goal and feature of medium and senior management: established job salary based on broadband salary structure and design performance oriented annual salary system for medium management; established low based salary and high incentive risk annual salary for senior management; And designed stock and welfare incentive plan. Thus, the new compensation system could combine with strategic target, keeping the internal and external fairness and individual equity of compensation system, realizing the long and short-term incentive for medium and senior management, and make medium and senior managers and enterprise become a community of interests.In the end, I hope this paper could provide useful information for LKYL’s business development, and provide reference and reflection to medium and senior management compensation system in other companies.