Research On The Strategy Of Corporate Compensation System During The Period Of Explosive Growth Of The Industry

With the outbreak of the Covid-19 pandemic in recent years,China has attached more and more importance to the development of the biopharmaceutical industry and given greater support in terms of policies and funds.The pandemic has prompted the rapid development of the biopharmaceutical industry,which has had a significant impact on the way biopharmaceutical companies operate and led to the need for companies to adjust their compensation systems to keep up with the changing environment.The original compensation system has faced great challenges,which is an important factor in determining the success of the company,so it’s vital to study the compensation strategy of the company during the explosive growth of the industry.S Biotech is committed to R&D,production and sales of biotechnology,and provides customers with comprehensive technical support and enjoys a high reputation in the industry,and has been selected as a model enterprise by the Ministry of Science and Technology,which is very representative in the industry.This paper took S biotechnology company as the research object,through literature and related theories studying on compensation strategy,coding and summarizing the contents of in-depth interviews,compensation data analyzing,combining sufficient primary data and company’s compensation practice,this paper summarized the characteristics of the compensation system during the explosive growth period of the industry and provide suggestions in accordance with the compensation model from the internal alignment of structure,external competitiveness of compensation level,compensation composition based on employee contribution and compensation management.This paper could provide some reference for the optimization of compensation system in domestic biotechnology industry as well as the optimization of compensation system of enterprises in the period of explosive growth of the industry.The study found that,in terms of internal alignment,the explosive growth period of the industry triggered the phenomenon of pay inversion between experienced and new employees.What’s more,Internal inequity triggered by changes in internal compensation elements.In terms of external competitiveness,the explosive growth period of the industry is a period of high risk of losing excellent employees,and the"rising salary level" makes the internal job value assessment no longer work.In terms of salary composition,the uncertainty of future industry development leads to the risk that enterprises may bear higher costs for base salary increase,and the high fixed salary combination is not conducive to employee motivation.In terms of compensation management,problems are further magnified during the period of explosive industry growth,and performance evaluation needs to be updated.Enterprises should select out backbone employees to give base salary increase,adjust internal compensation structure according to the change of employees’ contribution to enterprise’s strategic development,adopt different salary level policies for different types of employees,establish a flexible salary portfolio linked with enterprise’s business growth,establish a reasonable and standardized compensation management system and adjust salary evaluation standards according to enterprise’s business strategy in time.