Compensation System Reconstruction Of M Company

M company,who had won competitive advantage of success by emphasizing product quality and marketing strategy,had to face great challenges as the industry entered a mature stage.Plenty of small and medium-sized enterprises poured into the market,homogenization competition was increasingly fierce.In order to regain the leading position,management layer endeavored to raise the management level,save production cost,optimize human efficiency,promote steady innovation and boost the brand building.All these measures derived from compensation management improvement,which was not only the breakthrough point but slso the starting point for recovery.They tried to reconstruct a new salary system to meet M company’s internal and external environment,and change the overdue compensation system to the new scientific one,which rightly adapted to the new opportunities and strategic goals.Expect scientific management to rejuvenate the company and regain its competitive advantage.M senior management invited a professional consulting team to analyze the situation,examine the status quo,diagnose the possible problems existing in the original salary system for the sake of improving management and remolding the compensation system.So that they may better promote the business strategy under the new situation and meet the needs of competitive development.As a member of this consulting team,I participated in the project and summarized the research results as this paper.The paper explains the process of diagnosis and analysis from the angle of scientific and logic.It also offers some suggestions on implementation and safeguard measures.We helped M company to carry out the diagnosis of corporate compensation management.We held the questionnaires and in-depth interviews to understand M company’s business situation,industry status and talent matching level.We found the past salary system existed several weak points,such as sending wage at will,job responsibility ambiguity,payment decoupled from performance,neglect of post value,unreasonable single compensation structure,promotion channel unknown,injustice enforcing,and many other issues.Therefore,we did a series of analysis and improvement work to debug.We took a full consideration of M company’s compensation strategy,carried out scientific position analysis and position evaluation based on the post value.By exterior salary surveys,we linked the internal value of position with the external salary compensation through the key jobs.With this we drew the line of pay market,then brought out the pay policy line according to the compensation strategy.Catering to the needs of M company’s actuality and current targets,we divided the proper classification of pay grade,determined the reasonable broadband salary,confirmed the efficient pay structure combination,and even built up the specific promotion channels.Implementation and guarantee measures were provided in addition on executing,supervision,regulatory,adjustment,etc.Attaching grate importance to performance appraisal was also be cautioned seriously.In this way,we have reconstructed the scientific and feasible compensation system for M company.We try our best to make our survey and analysis standardized as well as meticulous,endeavor to meet the specific needs of M enterprise,and perfect the new pay system to be a comprehensive,standardized and operational one.This salary restructuring practice is also an important experience in adjusting and adapting to industry’s drastic change.Wish it will provide some useful references in compensation management improvement and compensation system establishment for similar enterprises or related industry companies.