Study On LST Company Compensation Management And Reform Measures

LST is a medium-sized private company specializing in the globally trading and d LST is one of the small-to-medium private companies,specializing in petrochemical products import and export for both domestic and overseas market.LST's grow is rapidly.The company strategy in recent 5 years is to develop more market home and abroad,minimize the costs and maximize the profits.This article starts from the company's operation,organizational structure and employees's status,then it makes a detailed review and analysis of the company's compensation policy and employees' salary.LST's positions can be divided into management and non-management according to administration privileges.Upon job's characteristics,non-management positions can be divided into marketing positions and non-marketing positions.Because LST has implemented a long-term performance compensation system for management positions,this article focuses on the research and optimization of compensation management for non-management positionsAfter investigation,the total salary for all positions from LST are above the average level of private companies in Guangzhou,but stuffs are not satisfied especially from non-marketing positions.This mainly results in LST's neglect in relationship between corporate strategy and compensation management,the lack of fairness in compensation,the irregularity of compensation design,the randomness of compensation,the incomplete compensation structure,and compensation lack of stimulation.The low satisfaction with salary directly affect employees' enthusiasm and restrict the further development of the company,where require higher work efficiency.Therefore,to take an action and optimize LST company's compensation is necessary and urgently requestedThe compensation management problem of small companies has been studied tirelessly because of its similarities and differences.These companies have the common characteristics such as small scale,weak capital chain,incomplete management system,and inadequate management,which limit the formulation and implementation of their compensation systems.The poor compensation system fails to attract outstanding talents or retain them.Also it has poor performance in stimulating those who are on active duty,without enthusiastic on work,in turn restricts the development of the company.The differences means there is no compensation system can be completely copied and applied to every company,it should be adjusted and designed according to its own development stage and characteristics.During study on LST company,this article found out that the biggest challenge that small companies are encountering in compensation management is how to improve the employees' satisfaction to compensation under the cost control from company.It's showed employees' satisfaction with salaries is not only related to the income level and diversity,but also in the feeling of fairness.Based on this,through the deep analysis of LST case,this paper take an analysis and evaluation on the studied jobs,formulate a salary strategy in conjunction with corporate strategy,draw a salary curve with reference to external market salary survey data,and confirm the scope of the standard.Optimization of personal development and promotion systems enhance the competitiveness of the entire compensation system.This research results have significant practical value to the compensation management of other companies in China of similar scales.