Research On Optimization Of Salary System In XL Machinery Manufacturing Co,Ltd.

At a time when the level of technology is constantly improving,the competition among manufacturing SMEs is also intensifying,and the number of talents for each company has become the focus of competition.A robust and efficient compensation system is a key factor to attract and retain talents.The subject of this paper,XL Machinery Manufacturing Co,Ltd.is a representative local manufacturing enterprise,which has been developing continuously since its establishment.In the changing environment and the broadening of the company’s business,the original salary system does not match the development form of the company and cannot fully play its role,so the salary system of XL company is optimized and designed.In this paper,the compensation system of XL Company is taken as the main subject of research.Firstly,the meaning of compensation and the meaning of compensation system are discussed,combined with the research results from domestic and foreign compensation-related fields in the literature,and the Hay’s evaluation method,the theory of compensation weights and changes and the theory of efficiency wages are used as the basic theories for the optimal design of compensation system in this paper.Secondly,the problems of XL’s compensation system are collected through questionnaires and interviews,and the causes of the problems are summarized and inferred.Finally,the principles and guiding ideology of the salary system optimization were clarified,combined with the job descriptions,and eight sub-factors under the three factors of skill level,problem solving ability and responsibility were used to evaluate the value of the jobs in XL Company using the Hay’s evaluation method,optimize the job ranking and salary grade,determine the salary range and the salary grade of each grade by combining the market salary data and corporate salary strategy,and complete the optimization design of 8 grades,The optimized design of 5 salary bands was completed.This paper hopes that the optimized design of XL’s salary system can promote the development of the company and provide reference from the study of salary system of similar companies.