An Applied Research On Combination Of Broad Banding And Grade Compensation

It is one of the most difficult and important question about how to effectively attract, retain and motivate employees for the human resource management practice. As the modern market environment becomes increasing complex, the competition about talents becomes more serious. How to attract, retain and motivate employees has become the core content of the enterprises. Among all the management instruments, there is no doubt that the compensation is one of the most attractive instruments. The key for the enterprises to realize a long-term development is to make a scientific and well-designed compensation system to meet the demands of the employees and to achieve the biggest efficiency.Nowadays the organization structure of enterprises is various and the employee structure is diversified. So if the enterprises adopt only one kind of compensation, it may not suit the development of the enterprises. Therefore, in order to realize the combination of compensation and organization structure of enterprises, and the combination of enterprise culture and employees, a new type of compensation system should be designed and the traditional single compensation system should be transformed. In grade compensation, the compensation of employees is closely related to the administrative position and administrative grade in their organization. That is to say, an employee with a higher position can gain more money. While the broad banding makes a new combination about compensation grade and compensation mobility scale. Thus it results in to a relatively less compensation grades and a wider compensation mobility scale.Combining the characteristics of broad banding and grade compensation, this thesis analyses their scopes of application, advantages and disadvantages. Meanwhile, this thesis puts out under which condition does the broad banding and grade compensation can be used together. Analyzing the applied cases in Foci Pharmacy, this thesis states the questions and the measures to which the attention should be paied in the combination of the broad banding and grade compensation. The purpose of this thesis is to provide a reference for other enterprises which intends to carry out this compensation model.By doing such a research, the thesis intends to establish a specific, effective compensation system with a modern, scientific method. Wit such a compensation system, the thesis also wants to more effectively motivate the employees, combine the benefits of employees and enterprises and enhance the competition ability and sustainable development ability. Meanwhile, the thesis also indicates the advantages and disadvantages of this compensation system and puts forward the conditions where these two kinds of compensation system can be carried out together and can flexibly apply to the actual environment of the enterprises.