Study On Building And Applying The Appraising Model Of Employee's Compensation Incentive

With the talent war in the market becoming fiercer, the main factor causing employees to jump ship and bring their positivity and creativity is the compensation. Compensation management plays an important role not only in attracting outside talent, but also in monitoring the behavior of current employees, sending the right message as well as motivating and retaining current employees.Firstly, combining with the deficiency on compensation management of enterprise, the thesis expatiated the conception and interrelated theory of compensation . Secondly, through discussing system and character of compensation and analyzing the advantage of putting LISREL into compensation management for designing the appraising model of compensation incentive, the thesis studied its conception, establishing process and testing method of LISREL appraising model .Thirdly, using the method of LISREL, the thesis built the LISREL model to appraise the effect on compensation incentive of employee,and clarified the method of data collecting and the testing of questionnaire. At last, puting LISREL appraising model into practice to validate the practicability of the model in a manufactory of HanDan steel & iron CO.,Ltd ,the thesis draw a reasonable conclusion and proposed some measures to the enterprise on compensation management.