A Study On The Salary System Of The State-owned Enterprise

Under the economic conditions of socialist market, the major problems that the state-owned enterprises are confronted with in the survivorship and development are how to set up the modern enterprise salary system, give full scope to the initiative of the staff and reinforce the entrepreneurial competitiveness. As state-owned, enterprise salary system has been influenced by such factors as management system, staff's ideas and backward management level, the income distribution system of most of the state-owned enterprises is still in a relative backward state. Equalitarianism is still in existence. There is a weak incentive salary distribution, which leads to the decrease of the entrepreneurial competitiveness. Talented people can not be attracted and kept. Therefore, it is inevitable to set up a modern enterprise salary system. This paper discusses the theoretical basis of setting up state-owned enterprise salary system, sets forth the necessity of reform of prevailing salary system of the state-owned enterprise, the major content of which is to build up the modern enterprise system and meets the requirement of socialist market economy and knowledge economy. The prevailing salary system of the state-owned enterprise is explored and analyzed in the paper. The main abuses which include lack of effective incentive and constraint mechanism; rigid salary distribution system inside the enterprises; similar income structures and singular forms; the incentive given to the owners being quite insufficient and short of long-term incentive are going against the constant development of the enterprises. Faced with these abuses of prevailing salary system of the state-owned enterprise, a new model of modern enterprise salary system with incentive and constraint mechanism is set forth in this paper. That is first to build up a basic salarysystem--functional point value salary system, and then set up a salary system on the basis of fundamentalsalary according to the characteristics of various kinds of the staff. The features of functional point value salary system are paying attention to and respecting the personal development of the staff; encouraging the staff to realize the increase of their salary levels through constantly improving their own abilities and work achievements, which will play a vital important role in instilling staffs enthusiasm and reinforcing the competitiveness of state-owned enterprises.