Study On Designing Competency, Performance And Market-Based Pay System For Beifang Holdings Limited

In the era of Knowledge Economy, the competition for the talents is very fierce. Base pay is one of the most important measures to attract, retain and motivate the employees. Thus it is kind of investment in the Human Capital. The base pay is expected to demonstrate employees' value. For many companies, several factors should be considered when they design base pay system. In practice, these companies had met many problems. The thesis clarified that the employees' contribution to the company are attributable to three aspects: employee's competency, their consistent performance and the human resource market value. Company usually shows high regard for the employees' current value. Coupled with the practice of a holding company, the thesis designed a base pay system which based on competency, performance and market. The whole system can be classified into the following procedures: the classification of human capital; the job evaluation; the evaluation of employee competency and performance; and base pay measurement. The thesis illustrated how the structure, level, distribution and management of the base pay will embody the employees' current value.