Research On The Compensation System Design In Private Enterprises

Domestic private enterprises have been developing greatly since reform and opening up, which contribute a lot to social employment, economic increasement and economic system reform. With the coming step of the knowledge economy time, higher adaptability and creativity are required in accord with the variational economic environment. Human is the main body of knowledge production, expansion and application, so human resource has become the key to durable competition advantage for each enterprise. Among various factors, compensation system of private enterprises is a key factor that decides if they can acquire, motivate and keep talents. As a result, establishing a complete, competitive and motivating compensation system is an important issue for private enterprises to face in order to maintain continuous development.Although the means of distribution in traditional planned economy had been broken up and the new means of distribution according to work has been set up, There are a lot of problems in compensation system still puzzling domestic private enterprise. A lot of private enterprises do not have complete and scientific compensation system and the regarding motivating system.This paper focuses on compensation system design in private enterprises. According to this point, six chapters are included as follows:The first chapter is introduction that mainly discusses the research backgrounds and framworks of this this paper.The second is the literature review which states the basic theory of compensation system design, including the definition of compensation, the design of compensation level and structure and some relative motivation theories.The third chapter analyses the key points during the process of compensation design. Fistly, factors which can influence compensation are analysed; secondly, the principles are discussed; at last, the author summarizes the steps on how to design compensation system.The fourth chapter states the status quo of the compensation system in private enterprises, analyses the reasons and puts forward specific strategies to perfect the compensation system.The fifth chapter is a case that introduces the application of the compensation system design in private enterprises.The sixth chapter is conclusion and drawbacks of this paper.