Research On Optimization Of YFPO Company’s Compensation System

Affected by the epidemic,the living environment of enterprises is becoming more and more difficult.How to improve employees’ work efficiency,enthusiasm and innovation through good compensation management,or attract and retain talents and reduce enterprise costs through effective salary management means and strategies,and let enterprises rejuvenate has become more and more important.At the beginning of2022,a large number of core employees of YFPO were resigned and the problems like unreasonable compensation system and weak incentive for employees became increasingly prominent,which seriously affected the long-term development of YFPO.Therefore,it is urgent to establish an efficient salary system.Thesis takes YFPO’s compensation system as the research object,and analyzes it from the linkage degree of salary strategy,including salary incentive,the rationality of compensation system and comprehensive salary.After fully study the relevant theories of compensation management,we use literature analysis,questionnaire survey,interview and other research methods to diagnose.We have a whole picture of YFPO’s current human resources situation and characteristics by collecting information from various places through salary surveys,questionnaires,interviews and other forms,and provide information for the design of optimization scheme.We find that YFPO’s the current compensation system is lacking external competitiveness,internal fairness,reasonable post value evaluation,reasonable setting of the ratio of solid to floating and perfect promotion channels.Based on the problems found in this paper,the following optimization plans and improvement measures are formulated.First of all,the company chooses a mixed compensation strategy to attract and retain strategic talents.Then we effectively distinguish the post value through the Mercer IPE3.0,reflecting the internal fairness of the salary system.To adjust the salary structure reasonably,and enhance the incentive of salary by adjusting the fixed floating ratio of salary and capping the seniority allowance,so as to lay a foundation for the later implementation of job rotation in YFPO.To implement the annual salary system for middle management,and form effective incentives and constraints by setting delayed cash incentives and reasonable solid floating ratio.Also improving the promotion mechanism of middle management,so that the ranks can be promoted and demoted,and ensure the quality of the middle talent team.At the same time,we broaden the salary grade,break the career ceiling and improve the promotion channel.Implementing differentiated salary supporting measures to meet the career development demands of employees at different levels and stages,and enhance their sense of belonging.In addition,we also summarize the problems in the implementation process,as a new direction for the subsequent iteration of the compensation system,and comprehensively evaluate the implementation effect of the optimization plan in multiple aspects to ensure that the plan is effective.The new compensation system of YFPO can attract and retain talents more effectively,improve the strategic support of human resource management,and hope to provide ideas for the optimization and improvement of the salary system of SME.