The Research And Design Of Position Performance Compensation System In XX Company

In such a competition era, enterprises compensation system and management are constantly faced with tough challenges.XX Company as the research context, based on the SWOT, the analysis on the existing compensation system, and the literature review, the author proposes a set of solutions, which is the Position Performance Compensation System.The system, firstly standardized the position system in the enterprise, where position clusters and the position coefficients are redefined; Secondly based on balanced scorecard (BSC) and key performance indicators (KPI), improved the performance evaluation system is improved, where the performance indicators is divided into department-level and personal-level, then a coefficient of performance evaluation is formed; Finally, a formula "Position performance compensation= base pay×coefficient of position performance×coefficient of performance evaluation" is used to assess the status and performance of staff salaries.Meanwhile, compensation raise and fall are linked to performance appraisal completely. Positions coefficients is adjusted based on the performance appraisal system, thereby broadening channels for the promotion of staff is available. Performance appraisal could also be used to further standardize and guide the work of the staff acts.Moreover, the position performance compensation has broken the previous allocation of the "big pot", which integrated positions, personal performance and department performance closely. The distinguishing of the different positions, different departments, and different performance is to achieve the equity of compensation system. The system is effective against the enterprise, due to its strongly theoretical reality, the author believes the system is still applicable to the enterprises which have the same problems needed to be solved.