Research On The Correlation Between Employee Salary Level, Salary Gap And Corporate Performance

In recent years,the impact of salary gap on corporate performance has become one of the hot topics in the study of enterprise management.The pay problem directly affects the initiative of the company's employees as a whole,which will have an impact on the performance of the enterprise.Although a large number of literatures have discussed the pay problem,most of the literature focuses on the impact of executive pay gap on firm performance.There are few literatures on the impact of salary gap on corporate performance among enterprises Sexual research,data empirical analysis of the general staff pay gap on the impact of corporate performance literature is very few.In view of the fact that the empirical analysis is not sufficient and the conclusion is inconsistent,with the increasing gap between the internal salary of Chinese enterprises,it is urgent to strengthen the further study on the impact of internal salary gap on enterprise performance.The manufacturing industry is an important part of China's real economy,the rise of the manufacturing industry is of great significance to the rich and powerful people,and the industry will depress the labor cost as the main means of competition,resulting in reduced labor efficiency,business performance is low,thus,This article selected China's manufacturing industry as a research object.In the study of more accurate sample at the same time,but also control the impact of good industry factors.Possibly Innovative:Most of the existing literatures are the relationship between executive pay gap and firm performance.This paper studies the relationship between salary gap and corporate performance,and discusses the relationship between employee pay gap and corporate performance The majority of the research is based on all the listed companies in Shenzhen and Shanghai as the object of study,there is no breakdown of the industry,after all,different industries have different corporate governance mechanisms,pay system and organizational characteristics,In this paper,the relationship between salary gap and firm performance is further explored from the perspective of manufacturing industry.This paper uses the method of normative research and empirical research to analyze the effect of salary gap of employees in manufacturing industry on enterprise performance.Empirical research is based on the analysis of the balance panel data of Shanghai and Shenzhen A shares in China's manufacturing listed companies from 2006 to 2015.Based on the analysis of the salary gap,which is represented by the manufacturing industry,the fixed effect model is selected by using the F test and the BP test to validate the model,and the individual difference can be taken into account effectively.The control variables take into account the impact of the pay gap on the performance of enterprises in the internal and external markets of China's listed companies,and explored the impact of different factors in the empirical analysis of this paper.The impact of employee pay gap on firm performance is discussed more deeply through comparative analysis.The conclusion is that under the condition that the control variables are unchanged,the salary gap of employees in manufacturing enterprises in ChinaThere is a positive correlation with the performance of enterprises,as well as outside the enterprise throughout the manufacturing industry employees pay gap and business performance was positively correlated.At the same time,through the empirical analysis,it is concluded that the remuneration of the listed companies in our country is consistent with the theory of the tournament,that is,the widening of the salary gap will help to motivate the employees to pursue higher remuneration.Research significance From the theoretical level,the foreign salary research despite the start early and in-depth comprehensive,but for the reference of our enterprises or have a certain degree of mismatch,and this paper based on China's manufacturing industry listed companies can analyze the conclusions of the establishment of a sound The salary system provides reference,as well as the reasonable salary incentive mechanism to provide the theoretical basis;from the reality level,on the one hand through the establishment of the compensation system to encourage employees to work actively,the use of human capital to the extreme,thereby enhancing business efficiency;On the other hand is conducive to improving the competitiveness of enterprises,thereby enhancing the profitability of enterprises,to obtain higher profits.