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Analysis on Salary Management in Enterprise Human Resource Management

Salary management is one of the core contents of human resource management and even the whole enterprise management. It not only involves the economic accounting and benefits of enterprises, but also is closely related to the vital interests of employees. The core problem of salary management is how to scientifically and reasonably determine the salary difference of employees according to their contributions to the organization and formulate a fair, open and just salary system. A reasonable and effective salary system can not only stimulate employees' enthusiasm and initiative, but also urge employees to strive to achieve enterprise goals and improve enterprise efficiency. It can also attract and retain a good-quality and competitive workforce in the increasingly competitive knowledge economy.

Keywords: salary management analysis

First, the main problems existing in enterprise salary management (1) internal salary imbalance, which is characterized by too large or too small salary gap. It is found that people are concerned about the degree of wage difference, even the absolute level of wages. Under the condition of market economy, "equalitarianism" and "pot rice" have no place. More people demand distribution according to work, more work and more pay, reflecting real fairness. At the same time, the differences in personal position, ability and work performance will inevitably lead to differences in income. Only fair and reasonable differences can make the salary play its role of encouraging the advanced and being accepted by most people. Too big or too small will cause employees' dissatisfaction. Excessive gap refers to the difference in salary between excellent employees and ordinary employees, the difference in Daewoo's work itself, or there may be great differences between employees who do the same job. The former is too different to help stabilize excellent employees, while the latter is too different to cause employee dissatisfaction. The difference is too small, which means that the salary difference between excellent employees and ordinary employees is smaller than the difference of the work itself. Will cause dissatisfaction among excellent employees. (B) The salary level is not balanced with the external market. External imbalance is high or low. The salary level involves an external fairness problem, that is, the process of employees comparing their income in the company with the average salary level of similar posts in society. The comparison results will affect his enthusiasm for work in the future, and even whether he will stay or not. With the improvement of China's market economic system, as one of the resource elements of the labor market, the allocation of talents must meet the requirements of the law of value, and the flow of talents to high-priced enterprises will become a common phenomenon. (3) The single distribution model leads to the lack of long-term incentives, mainly for the core talents of enterprises, including senior managers, engineers who master key technologies and R&D personnel. At present, most enterprises in China mainly rely on bonuses and performance pay, and rarely use capital, labor, management and technical factors to participate in distribution. In particular, insufficient attention is paid to the participation of labor, management and technical factors in distribution. Although many enterprises have designed some measures to make human capital participate in distribution, due to unreasonable design, the proportion is small or little or no incentive. Almost all enterprises have such problems. Short-term incentives make short-term behavior inevitable, and long-term interests are naturally damaged. (D) The decoupling between performance pay and performance is also a serious problem in enterprises at present. There are two main forms of expression:

1, the performance pay gap is very small, which cannot reflect the degree of individual efforts and contributions.

2. As a floating wage, bonus has become a relatively stable or constant amount, but it is more reflected in promotion and seniority, floating without moving, making bonus a formalism, forming a new round of egalitarianism and losing its meaning. Second, the reason analysis (a) from the whole human resource system 1, enterprises do not have a complete human resource management system. In some small-scale enterprises with irregular management, due to the subjective influence of corporate culture or senior executives, compensation management is not paid attention to, and employee compensation is only regarded as a financial expenditure. Simple adjustment and distribution are far from management. On the other hand, although we attach great importance to salary, other links are absent. To be scientific, reasonable and effective, employee compensation management must be based on the effective operation of multiple links in the enterprise human resource management system. Without altruism, there is no effective employee compensation management, or it is impossible. At this point, enterprises are prone to problems: ignoring job analysis and job evaluation, or the absence of performance appraisal, which makes the salary lose its fair and reasonable basis. 2. The human resource management system and salary related links are unreasonable, and there is a complete human resource management system, but some unreasonable salary related links are common in enterprises at present:

(1) The job evaluation system is not standardized. The performance is as follows: A Many enterprises often fall into the evaluation of the specific people engaged in the work, rather than the evaluation of the work. B. Evaluation criteria and indicators often fail to reflect job responsibilities. The salary of position C does not correctly reflect the value of the position. D the object of assessment becomes employees, not employees' work performance.

(2) The assessment criteria are not clear or standardized. For example, the assessment indicators can not be quantified, out of touch with the post or too complicated to measure.

(3) The evaluation process is not standardized and is influenced by the subjective factors of the appraisers. Common ones are: generalizing by partiality; Self-similarity effect: give a favorable evaluation to people who are similar to themselves; Recency effect: The events that happened not long ago have a deep influence and are considered as typical representative events or behaviors. As a general feature of the assessed, longer events are forgotten or ignored. The defects of personnel management system mostly come from the subjectivity and one-sidedness of assessment, and the result will inevitably affect the credibility and effectiveness of performance appraisal. Can not reflect justice, openness and fairness.

(4) There was no timely communication and feedback after the evaluation. Failure to affirm and correct employees' achievements and mistakes in work in time leads to employees' dissatisfaction. (B) From the salary system itself, 1, the salary system is unreasonable. Salary system refers to a system in which companies classify all kinds of salaries according to the complexity of labor, the degree of responsibility and working conditions, and determine salary standards according to grades. Here mainly refers to the basis for setting salary and the salary setting method for all kinds of personnel. In reality, the irrationality of the salary system is mainly manifested in:

(1) The salary system is not systematic. The current salary system of enterprises will often be formed through large or small new capital reform.

(2) The salary system is in the wrong direction. The salary system involves a directional problem, that is, what kind of behavior enterprises encourage and what kind of performance they pay attention to. Will play a guiding role in employee behavior. Influenced by traditional ideas, many domestic enterprises pay more attention to human relations and tend to rank according to seniority in bonus distribution. The consequence of this is that new employees, especially new senior talents, lose their enthusiasm for work and even leave their jobs because they are not taken seriously. 2. The salary system structure design is unreasonable. Salary system mainly refers to the composition of salary. The vast majority of enterprises in their structural design is not reasonable enough, as follows:

(1) The proportion of fixed wages is too high, which leads to an undisclosed income gap and fails to reflect fairness and efficiency.

(2) Floating salary becomes a mere formality and becomes a fixed value, which makes the incentive invalid.

(3) The salary structure model of all employees is the same, and the pertinence is not strong.

(4) The criteria for obtaining performance pay involve too many grades and qualifications. Make new employees lose confidence and enthusiasm for their work.

(5) The proportion of long-term salary is very small, which leads to insufficient long-term incentives. (C) From the perspective of system operation, 1, the salary strategy is inconsistent with the enterprise's own characteristics. Although many enterprises have designed a reasonable salary system and salary system, they cannot implement it, because the salary strategy conflicts with the enterprise strategy and corporate culture or is not suitable for the requirements of the enterprise development stage. The salary design of many enterprises lacks unified guiding ideology and design basis. Many enterprises do not consider the purpose and guiding policies of the salary scheme when formulating the salary scheme. Usually, from the very beginning, we get bogged down in the specific design, repeatedly discuss the unit composition and level differences of salary, hold different opinions without unified guiding ideology and principles, or copy the theoretical salary system, blindly imitate the salary model of other enterprises, ignore their own characteristics, development goals, economic strength and market position, and think fragmented, which leads to the inconsistency between salary strategy and enterprise strategy. Poor communication within the enterprise leads to employees not supporting the salary system. Although many enterprises have designed a reasonable salary system and salary system, due to the lack of communication between managers and employees, they can't operate and can't get the expected results. The performance is: (1), employees don't understand or misunderstand the relevant policies because of the untimely or incorrect information transmission, and the dissatisfaction caused by this can't be explained or explained by the relevant superiors, and the resistance is getting stronger and stronger, which leads to the obstruction of the system operation. (2) The superiors don't understand the employees' ideas, and they can't get timely feedback on their subordinates' needs, relevant policy suggestions and opinions, and the effect of system operation, which leads managers to make management mistakes without knowing it, and mistakenly think that the system is reasonable and foolproof. Third, reform ideas and countermeasures (1) Vigorously build enterprise salary culture and publicize reasonable salary values. Enterprise culture is the soil of enterprise distribution thought, values, goal pursuit, value orientation and system. Explain the people and things that enterprises value. Different corporate cultures will inevitably have different salary models. A fair and reasonable corporate culture atmosphere will provide favorable environmental support for the operation of a fair and reasonable salary system. On the one hand, judging from the characteristics of fairness itself, fairness has a great subjective color. Employees often overestimate their contribution to the company, fail to see their own shortcomings, underestimate the contribution of others to the company, and find fault with others. Establishing a fair view consistent with corporate culture and salary system, formulating clear salary standards through rules and regulations and salary manuals, and ensuring their openness and transparency will effectively avoid internal unfairness caused by subjective factors. On the other hand, many enterprises in China have long been influenced by the planned economy. In the enterprise, a culture of "valuing seniority over ability" has been formed. If an enterprise wants to implement the salary management system smoothly and effectively, it must establish a performance-oriented cultural atmosphere, and must take the decision on "people"-post arrangement, salary, promotion, demotion and dismissal-as a real "control means" of an organization. Because the decision of the relevant personnel will show every member of the organization what the management really needs, values and rewards. In addition, enterprises should create a cultural atmosphere of seamless communication between superiors and subordinates, so as to ensure the interpersonal harmony of enterprises, reduce misunderstandings caused by insufficient communication and facilitate the implementation of various systems. (2) Establish a scientific and standardized post evaluation system and ensure its effective operation. Job evaluation and job analysis is a process of quantitatively evaluating the value of work according to the complexity, responsibility, workload, difficulty, control scope, required knowledge and ability, work attitude and other factors, so as to determine its relative value, so as to establish a reasonable, stable and systematic work structure, formulate the rank sequence of work value, and determine the salary level and work treatment accordingly. Post evaluation and analysis is the basis of modern enterprise salary design, and it is also the key to fundamentally solve the internal fairness of salary. First of all, job evaluation should be based on jobs, and job evaluation is about jobs rather than employees. It is more scientific and standardized to design salary from the perspective of labor diversification, and it is very convincing to convince employees that the value of each position reflects the contribution of the position to the company. Secondly, it is necessary to clarify the basis and indicators of job evaluation, so as to avoid suspicion of distrust and biased discrimination of employees, so as to improve employees' acceptability of job gap and enhance their psychological endurance to accept salary gap. Thirdly, to make the evaluation process as transparent as possible, we can introduce the evaluation committee, appropriately let employees participate in the discussion of relevant policies, and let employees actively participate in job evaluation, so as to better reflect employees' interests and protect employees' rights. Finally, the results of job evaluation should be made public so that employees can agree with the results of job evaluation. (3) Establish a systematic and fair performance appraisal system to ensure that performance pay is linked to performance appraisal. Making a perfect performance appraisal system is an important link to realize the linkage between salary and performance and internal fairness. To establish a systematic and fair performance appraisal system, we must ensure its fairness and effectiveness. Fairness is one of the important parts of the salary system to achieve satisfaction and motivation. For employees who get paid through hard work, they must be convinced that the corresponding remuneration will follow. If the enterprise fails to establish credibility, then employees' trust in the salary system will also be damaged, and their work enthusiasm and initiative will be greatly reduced. And effectiveness is the fundamental purpose of establishing a performance appraisal system, which requires enterprises to do the following:

1, which can accurately measure performance;

2. The salary range should be large enough to widen the distance between employees' salaries and keep employees motivated;

3. Clearly define the relationship between salary and performance, and link the performance appraisal results with the salary structure level;

4. Have the opportunity to improve performance;

5. Its managers should formulate performance standards and operate the evaluation process with skilled skills, and there is mutual trust between managers and subordinates.

In addition, in the specific operation process of establishing performance appraisal system, employees should be involved in the formulation of standards, and employees should be involved in the formulation of goals through discussion and communication, so that the performance goals formulated by the organization are more impressive, fairer and more acceptable. In the formulation of standards, indicators should be clear and quantifiable, but not too complicated. It is necessary to reflect the characteristics of posts and formulate different standards for different posts. The selection of indicators is a key, small and accurate indicator set based on the functions of enterprises and the strategic support of departments to enterprises, which can establish a key performance indicator system and combine performance management with employee performance. Firstly, according to the strategic objectives of the enterprise, the key drivers are determined, and then the sub-factor analysis is carried out to determine the key performance indicators of each closing and each position. The determination of indicators should be quantified as much as possible, and those that cannot be quantified should be refined or standardized. We can use numerical values to represent quantifiable indicators and degrees to represent non-quantifiable indicators, thus avoiding problems such as supervisor bias. Secondly, in the assessment process, we should pay attention to avoid subjective factors such as first impression, recent effect and halo effect. Finally, we should pay attention to communication and feedback, and we must apply the results of performance appraisal to the formulation of diversified reward results, so as to determine the reward by contribution and avoid the assessment becoming a mere formality. And timely find the mistakes in the assessment process and correct them in time. (four) through salary survey, combined with the characteristics of enterprises, to determine a reasonable salary level. In order to ensure competitive salary, enterprises must consider the salary level of enterprises with similar scale in the same industry and the average salary level in the same industry market in the region. To determine a reasonable salary level, enterprises must conduct salary surveys and collect the latest data. An enterprise can entrust a professional consulting organization to conduct an investigation, and on the basis of the analysis results, combined with the characteristics of the enterprise itself, determine the overall salary level of the enterprise. Common compensation strategies are as follows:

1, the market leading strategy, that is, higher than the market average, generally speaking, high-tech enterprises in the high-speed growth period should adopt this strategy.

2. The market following strategy based on the same average market level is suitable for enterprises with weak salary tolerance, obscure production and operation characteristics and unable to pass on excessive salary costs.

3. Low salary strategy, that is, lower than the market average, is more suitable for enterprises with relatively stable operation and harmonious interpersonal relationships, and is conducive to the low-cost expansion of enterprises.

4, the level, that is, the executive pay is higher than the average level, while the grass-roots staff pay is lower than the average level, which is not only conducive to attracting senior management talents, but also moderately controlling the salary cost, which is suitable for management-oriented enterprises.

5. The salary of grass-roots employees is higher than the average, and the management staff is lower than the average, which is suitable for enterprises with clear market positioning and mature products. (5) Introduce supervision mechanism and communication mechanism to ensure the effective implementation of the salary management system. The introduction of supervision mechanism can effectively avoid the irrationality in the operation of the salary system and reduce man-made misoperation, and employee supervision is the best supervision, because employees will be very responsible because of the correlation of interests, and salary communication can better play the supervisory role of employees and ensure the fair implementation of the fair salary system. Pay attention to communicate salary with employees, so that employees can understand the price paid by the company for them. In fact, the salary system of enterprises should be transparent. Enterprises that implement the confidential salary system often have such a phenomenon: strong curiosity makes employees inquire about their colleagues' salaries through various channels, which makes the confidential salary open soon. Even if a strict confidential system is formulated, it is difficult to prevent this phenomenon. Since confidential wages can't play a role of confidentiality, it is better to use transparent wages directly. The implementation of salary transparency actually sends a message to employees: people with high salaries have their own high reasons, and people with low salaries also have their own shortcomings; Pay transparency is actually based on fairness, justice and openness, including the following practices:

1. Let employees participate in salary formulation and assessment. When formulating the salary system, in addition to the leaders of various departments, there should also be a certain number of employee representatives. The verification method of employees' performance pay can be suggested by superiors and verified at different levels, which can not only avoid the high or low judgment caused by the contradiction between superiors and subordinates or too close, but also enable managers to examine the internal fairness of employees' performance pay from a higher level and reduce the current neglect of the internal balance of the overall salary of the organization.

2. Issue documents to explain the salary making process to employees in detail, and describe the salary system made after evaluation in detail, so as not to make employees misunderstand.

3. Establish employee email, answer employee salary questions at any time, and handle employee complaints. (6) Pay attention to the skills of salary payment. In terms of salary payment, we should pay attention to meeting the needs of different levels. Although we say that work is not only for wages, wages, as a guarantee to meet low-level needs, are still the last word for most people. According to the famous Maslow's hierarchy of needs theory, people's needs are hierarchical, and only when the low-level needs are met can the higher-level needs be considered. Salary can meet people's needs at different levels. Not only provide employees with food, clothing, housing and transportation, but also develop personal hobbies for employees. In addition, salary is a symbol of achievement, and employees often regard salary as the recognition and appreciation of their work by enterprises. Therefore, in terms of re-payment, economic compensation should be applied to ordinary employees with lower income; For high-level talents, economic compensation and non-economic compensation should be combined. If the salary is high but there is no training and development opportunity, it still lacks attraction and motivation. From the time of salary payment, wages and bonuses should be paid in time. Appropriately shortening the time to establish wages will help to achieve the best incentive effect. Usually, frequent small-scale rewards are more effective than large-scale rewards. Reduce regular rewards and increase irregular rewards, so that employees have more unexpected surprises and enhance the incentive effect.

Reference: [1] Liu Junsheng. Salary management practice manual [M]. Beijing: Machinery Industry Press, 2005[2] Ding Xiangyang. Salary Problems and Salary Design in Japanese Enterprises —— Professor Zeng Xiangquan's Report at the 4th International Symposium on Human Resources Development between China and Japan [J]. Japanese Talents, 2003, (2)

[3] Liu Xin. Salary management (second edition) [M]. Beijing: Renmin University of China Press, 2007.