Study On Designing Compensation System In L Company

Compensation system is one of the most basic and most important management systems of enterprises, and also an important means to attract talents, keep talents and motivate employees. Under the circumstance of compensation system reform in SOE's(State-Owned Enterprises), with the entry into WTO and the adjustment of industry policies in China, for L company, a SOE in chemical industry, it is actually significant to design and set up a set of scientific compensation system according to factory's actual conditions. Starting with the basic compensation theory and main compensation system, this dissertation summarizes the successful experience and failure lessons during the reform on compensation system in SOE's. After the original compensation system in L company is studied and some investigation on employees' satisfaction is made, employees' attitude to original compensation system and expectation for compensation reform are understood, moreover, major problems in original compensation system are deeply analyzed. In this dissertation, according to L company's strategic objective, a scheme of job and performance-based compensation system as a main body is designed on the base of quantitative and qualitative analysis. Job evaluation and performance compensation designing are emphatically dissected, that is, job evaluation form is established after making quantitative analysis on factors of job evaluation based on Statistical Analyses. According to experts' appraisal about all jobs in L company, this dissertation puts forward some methods to design performance pay, and establishes standards to reappraise some factors, which provides a reliable technology warranty for the scientific and consistent appraisal. In order to ensure that the new compensation system proceeds smoothly, it is suggested that L company must establish scientific and reasonable methods according compensation system reform, and employees need to change their traditional values, they must improve their accomplishment and work hard.