Research On Competency-based Pay System Design Of The Enterprise Knowledge Employees

In the knowledge-based economy period, the economy and technologies develop rapidly and the social environment changes quickly. The competition of enterprises is no longer the competition of product and market, but the competition of competence and talent. As a motivator, the pay plays an important role in attracting and retaining talent, stimulating the enthusiasm and creativity of the talent. It can be said that the pay system play the vital role in the enterprises development. But the traditional pay system has a lot of obvious limitations in motivating the knowledge employees. So, a new pay system which is based on competence has appeared. The competency -based pay system adapts the command of the knowledge economy, promotes the development of employees' competence, so it is good both for the enterprises and employees. And then, the competency -based pay system meets the needs of the knowledge employees, greatly enhances the satisfaction of the pay and improves the efficiency of incentive.This paper introduces the competency -based pay system and proposes a set of design methods and processes by theoretical research, regulate research, case studies and comparative studies. The first part of this paper introduces the research methods, research purpose, results of previous research and then makes a comment. The second part of this paper reviews the relevant theories, mainly involving competence theory, pay theory and knowledge employees theory and so on. And also makes the concept definition of knowledge employees, competence and the competency -based pay system. The third part of this paper start the basic research on the competency -based pay system of knowledge employees, mainly on the aspect of the satisfaction of the current pay systems; the limitations of traditional pay systems on the knowledge employees incentive; the necessity, effect and application areas of the competency -based pay system. This part details the principle,necessity,effect and application areas of this system. The fourth part of this paper introduces the design methods and processes of this system, focus on the competency model building, competency assessment, competence link to pay and the attentions of implementation. The fifth part of this paper starts the empirical research on the competency -based pay system. We design this pay system for a knowledge-based enterprise, then test the effect of the new system and reach a conclusion in practice. The sixth part is a summary of this paper.