Empirical Study On Relationship Between Pay For Performance And Employee Satisfaction

As the pillar of China manufacturing,automobile manufacturing industry is an important economic subject in China national economy.With strong industrial driving effect and high-tech dependence effect,automobile manufacturing industry radiates other manufacturing industries and accelerates the process of industrialization and the transformation of industrial structure.The competition of new communication technology,new energy and new materials bring automotive manufacturing more chances for technological innovation and development but at the same time brings more challenges.In order to attract and retain talents,pay for performance policy is widely used in most automobile manufacturing enterprises to motivate and develop employees.This paper aims to study the effectiveness of the pay for performance policy in improving employee satisfaction and to provide reasonable suggestions for talent incentive in automobile manufacturing industry.On the basis of combing the relevant literature,this study analyzes the current talent workplace portrait,talent flow trend and salary system status of automobile manufacturing enterprises through normative research and empirical research methods,and puts forward three hypotheses from sense of fairness,sense of achievement and promotion momentum perspectives for the empirical research.In this study,regression discontinuity model is settled.Firstly,taking the performance score that determines the ratio of salary and bonus in pay for performance policy as the driving variable,this paper studies whether the sense of fairness,sense of achievement and promotion momentum brought by pay for performance policy can improve employees’ satisfaction and the overall incentive effect of the policy;Secondly,the covariates that may cause the change of employee satisfaction in the model,such as age and gender,etc.are tested;Finally,in order to ensure the stability of the model,breakpoint placebo test,sample selection sensitivity test and broadband selection sensitivity test are carried out respectively to reduce the error and ensure the effectiveness and stability of the conclusion.Research findings:1.Pay for performance policy can significantly improve employee satisfaction.2.The sense of fairness generated by pay for performance policy can effectively encourage employees to generate high performance and realize the sustainable development of employees together with organizations.3.The sense of achievement produced by pay for performance policy is less significant than other effects in improving employee satisfaction.The main consideration is the timeliness of incentive.3.The promotion momentum generated by pay for performance policy is very significant in improving employee satisfaction.Based on these conclusions,this paper provides the following suggestions for the pay for performance policy of automobile manufacturing industry:1.Implement the fairness of pay for performance policy and eliminate the formalism of "big pot"through establishing and developing performance evaluation system,clarifying assessment contents,standards and processes.2.More and more "New Generation"joined labor force and the timeliness of pay for performance policy needs to be strengthened and at the same time,humanistic characteristics needs to be improved.3.Pay attention to the development of the industry,update the salary policy in time,especially to company’s key positions,to enhance the competitiveness of the company in labor market.4.Learn from the production and sales concepts of the new forces of car manufacturing.Let employees participate in employer branding promotion and enhance employees’ loyalty.5.Inherit and innovate master-apprentice culture of the automobile manufacturing industry,support employee with their career development path by improving the promotion mechanism.