Research On Compensation System Design Of Northern Communication Design Institute

The compensation means repay or guerdon that the employer or the enterprise provides for the employee for their labor. The institution of the compensation system of the enterprise should put together with the enterprise's development strategy, and should be one of the important levers for achieving the enterprise development strategy.The Northern Communication Design Institute is a design institute establishes in mid 80's in 20 centuries, it was a state-owned enterprise at first, recent years becoming a joint-stock enterprise through restructuring. The compensation system of the Institute experienced an opposite reasonable period, but along with the variety of the exterior environment, it has already exposed some weakness gradually recent years. Major reflected in that the absolute level of the base pay is lower, mechanism of bonus distribution is deficiencies and the compensation range is narrow etc., and these drawbacks result in disadvantageous situation such as employee's enthusiasm and stability is not enough. All these influence the development of the Institute. It is under this background this article to analyze the original existence problem of the compensation system in the Institute to redesign the system. Hope to design a kind of reasonable compensation system to keep the steady development of the enterprise.This article includes the contents such as the design process and the design principle of the compensation system, the job analysis and evaluation, the design of the compensation system, implement process and effect of the compensation system.The design of the new compensation system, not only follows some basic principles of the compensation system design, but also has measures that aim at the profession and the characteristics of the Institute.The purpose that the compensation system design of the Northern Communication Design Institute is establishment of a scientific and rational allocation mechanism and the quest for sustainable development of the Institute.The basis that compensation system design of the Institute is a comprehensive consideration of the positions, technical abilities, and accomplishments, contributes, ability represents in the process of implementing the job.The compensation structure of the Northern Communication Design Institute includes Basic Pay, Variable Pay, and Benefit. Among them, Basic Pay namely base wage, Variable Pay includes a performance allowances (management performance and production performance), performance bonus and management bonus, performance year salary etc., Benefit namely welfare.The base wage of the North Communication Design Institute mainly use the design method based on job. The base wage of the job is decided by the job evaluation result and represents "opposite value" of each job to strategic target in the Institute. The main factor of the job evaluation mainly includes: knowledge and ability to work, responsibility scope and authority size, the environment and the complexity of the work etc..The salary-point Table is an objective basis for determining pay. Taking into account the flat of the enterprise, Northern Communication Design Institute gives a large enough compensation space in the design of the Salary-point Table, and sets 20 Grades in every rank, in which the highest grade is 10 times as much as the lowest grade. Such a structure could make the staff have enough space to develop their compensation even when they stay in the same position, and help them to maintain enough confidence in their career.Variable Pay includes the performance allowance and the performance bonus.The Performance allowance is applied to the designers who are the main staff in the institute. The proportion of the performance allowance is on the basis of the size of the workload and responsibility. The performance allowance is calculated in two steps. The first step is to assign the production value of the project proportionally to the institute, and the second step is to assign the total allowances of the institute to the designers on the basis of the size of the workload and responsibility.According to the characteristics of the institute, and because of the different regions, different customers, and different professional, production value of the project is not consistent to the workload of the project. In order to balance the difference between the project, some measures are taken to adjust the project value equivalently. This is an important measure to reach internal equity, and is the basis of performance allowance.Performance bonus is determined proportionally on the basis of the average individual performance allowance, and it is a kind of supplementary allowance.Northern Communication Design Institute has established President Fund to adjust compensation irregularly. The fund is extracted from the total production value of the institute(1%-2%),and is varied according to the actual needs. By this kind of irregular adjustment, the enterprise's compensation policy is more flexible, which can adjust salary according to the market, and help implement the strategy of the enterprise.After the compensation system are designed, there is a transition period from the existing compensation system to the new compensation system. It is actually a compensation reform because of the fundamental changes. The existing compensation system has been running for many years and have a certain rationality ,therefore, the original compensation must be considered in compensation reform. Pay rank and pay grade of the staff are determined on the reference of the existing wage level, in order to satisfying internal equity and external equity requirements. In the implementation of the new compensation system, other aspects must be considered, such as the budget and cost of the compensation, and the publicity of the compensation system.The main focus of the compensation budget is to set the basic salary-point value at the beginning of the year. The Institute take a comprehensive method ,based on the condition of the operating and the salary level in the market, to establish the total payroll, determine point values, and determine each employee's wages in the beginning of each year.The compensation system of the Institute takes full account of the compensation cost controlling. The basic pay is determined mainly through forecasting the operating results at the beginning of the year. Changes in the larger scope of the variable pay is determined on the basis of the actual annual operating results, and the compensation cost can be controlled effectively by the specific adjustment at the end of a period.After a period of operation, Northern Communication Design Institute has fairly good results. The total production value of the Institute has increased by 30%, and the profits grew by 30%,and the average production value of the designers increased by 28%.The enterprise's production efficiency have been improved, reducing the loss of key employees.Generally speaking, the compensation system of the Northern Communication Design Institute has a significant effect, and reach the original plan..