Design Of Salary Incentive Scheme Of AB Commerce And Logistics Company's Direct-sale Stores

In order to promote the market-oriented reform of the company,BD Tobacco Company restructured its logistics center into AB Commerce and Logistics Company.After this transformation,AB Commerce and Logistics Company shifted from a cost-centric department to a profit-oriented company.BD Company transferred its tobacco direct-sale stores to AB Company during this transformation.The change of company policy has brought great influence on the operation of these stores.In the past,these direct-sale stores were in a separate store group with policy support in ordering,so that they could basically achieve no-loss operation.But now,they are converted into common retail stores with inventory and price implemented in accordance with the company's regulations.There is no competitive advantage over the other retail stores in the market.As a result,the sales revenue of these stores declined,the basic salary and performance salary of the employees reduced,which affects the employees' enthusiasm for their work.As the nature of these stores has been transformed,the current salary assessment and distribution system can no longer meet the needs of market-oriented development.The current salary system doesn't get employees' contribution and income match well.Employees' salaries are divided into four levels according to the monthly sales revenue of their stores-under RMB200,000,RMB200,000-300,000,RMB300,000-400,000 and over RMB400,000,and the salary difference of each level is RMB200 per month.Besides,there are upper limits for both basic salary and performance salary,and the incentive effect on employees is insufficient.Therefore,we need to formulate a scientific and reasonable salary incentive scheme to stimulate the enthusiasm of employees and create more revenue for AB Company.This dissertation first expounds the meaning of salary,incentive theory and literature review at home and abroad,providing theoretical support for the design of salary incentive scheme for AB Company's direct-sale stores.Then,after introducing the current human resource situation and salary distribution scheme of the direct-sale stores,this dissertation deeply analyses the problems existing in basic salary and performance salary from their meanings,the expectancy theory and the equity theory.In addition,by comparing with the shop-assistants' salaries in the market,the salary level of the employees in these direct-sale stores is on the low side.These analyses provide a clear direction for improvement in the design of new salary incentive scheme.At the beginning of the design of the new salary incentive scheme,the guiding ideology,specific requirements and the principle of the optimal design of the scheme are first clarified.The interview method is used when conducting job analysis of the employees,and the post specifications are compiled accordingly.Based on the post specifications,the “Hay Method of Job Evaluation” is adopted to make a reasonable evaluation for the post value of the direct-sale store's manager and shop-assistant,which provides a theoretical basis for the basic salary difference between these two positions in the design of the salary incentive scheme.As for the data support of the salary incentive scheme,the method of stratified sampling is adopted to obtain the salary data of shop-assistants in the market from recruitment websites to ensure its authenticity and validity.Through the above analysis and evaluation,the salary positioning method of the direct-sale stores is determined.Firstly,the commission salary system is adopted in the design.Secondly,in order to reflect the fundamental requirement of giving priority to efficiency with due consideration to fairness,this dissertation redesigns the salary system of the stores by the way of grading and regression through a large number of calculation of financial indicators and salary data.Specifically,the sales revenue is divided into five categories,and the commission proportion of each category is different.Finally,a complete set of salary incentive scheme is formed.After evaluation,it is affirmed that the new salary incentive scheme can effectively solve the problems existing in the original one.It conforms to the market orientation and the characteristics of commercial enterprises,and stimulates the enthusiasm of the employees of the direct-sale stores well.