The Research On Incentive Compensation System Of Company L

Compensation management is one of the most important part of Human Resource Management,especially for choosing,training,and keeping the talent.Reasonable compensation system is easy for the company to attract and keep the talents.But there are lots of the company don't realize this,or they don't take compensation as the most important part of company's development,even more,they think compensation is equal with the salary,and they only use their own judgement to set up the employees' compensation.Salary is only a small part of compensation,and it cannot fully embody the encouragement of compensation.The industry which Company L locates is software,in this industry,the talents are even more important.The reasonable compensation system is more important because the software talents' feature is hard to train and easy to lose.But Company L didn't realize this since it established,they didn't have any plan for the compensation,they didn't have a formal compensation system,and they pay for the compensation only under their own taste.All these reasons make they cannot attract and keep talents,and cannot develop very well.First of all,this article makes a research of current situation of compensation both in domestic and in the world.Then uses Company L as an example,study of their company's situation of human resources and compensation.At the same time,they use compensation satisfaction survey questionnaire to know the real thoughts of their employees.After this,it uses fishbone diagram to analysis what the problems that Company L has are.At the same time,make the salary survey for the same industry and its competitors.From this,they'll find where they need to change and how to make the suitable compensation system.This will help them to have an encouraging environment,and attract and keep the talents,make them development well.After local company tries this system,they can send this system to the other subsidiaries,to bring them a good competitive power,and make them keep the leading position of the industry.