A Study On Total Compensation Incentive Of QC Company Based On Psychological Contract

With the rapid development of Chinese social economy, enterprises are facing increasingly fierce competition. Human Resource Outsourcing (HRO) is becoming an important way to reduce company cost and enhance competitiveness. However, the growth of HRO Service Company leads to various problems in its own human resource management, especially in the staff motivational system, which causes serious staff turnover and obstacles to the development of Human Resource Outsourcing Business.Following the above views, this thesis is to study on the problem of incentive system failure from the perspective of psychological contract. Based on psychological contract theory and through the analysis of knowledge staff's psychological contract creation and violation, it proposes that total compensation implementation is the effective means to solve the problem of knowledge staff motivation.This thesis takes QC Company, the most representative of HRO Service Companies, as the research object. First of all, it defines HRO professional employees as knowledge staff, and analyzes the characteristics of their psychological contract. Secondly, through face-to-face interview, it discovers the dominant factors for the employees' turnover, and finds out the root cause is that the company's compensation system has violated the knowledge staff's psychological contract. Therefore, the thesis put forward total compensation solution and implementation strategies based on the actual situation of QC Company in order to take full account of knowledge staff's transaction dimension psychological contract, development dimension psychological contract and relationship dimension psychological contract. The external and internal compensation incentives play different functions and constitute the total compensation system, which is to stimulate the maximum potential of knowledge staff and motivate employees effectively to reduce the staff turnover rate.To draw a conclusion, enterprises must fully consider the characteristics of their professional staff, and especially pay attention to their psychological contract in addition to the economic contract. Moreover, the total compensation strategy is an effective means of motivation for the HRO Service Companies' knowledge staff.This study has theoretical significance on combination of the knowledge staff's psychological contract and total compensation strategy. At the same time, the study has the practical guidance for HRO Service Companies to improve the incentive system and enhance their core competitiveness.