Redesign On Salary System Of HW Company In Hangzhou

Nowadays, with the development of economic globalization and the deepening of knowledge economy, enterprise management is focused on human resources management. It has been improved from daily management to the component of the enterprises' strategic management, with salary management being the core. It is a crucial task in the enterprises' long-term development to design a scientific and reasonable salary management system, and thus to attract and retain qualified talents for the development.However, many small and medium-sized private enterprises still follow in the footsteps of the outdated salary management system, which leads to not only the increasing cost of human resources management but also the overall decline of the enterprise management efficiency. In many small and medium-sized private enterprises, the payment system programmed is unreasonable and imperfect, which reduces the enthusiasm and initiative of the staff. The leaving of excellent employees only means the loss of substantive significance in the point of salary management, and then a vicious cycle of inefficient payment management is formed in the enterprises.This article makes the study on HW Company in Hangzhou. In view of the existing problems of their salaries, it illuminates the basic theory of payment and payment system systematically, and it expounds fairness theory, competition theory, stimulus theory of the design of the salary system, besides, it states the principle, structure, mode, standard and influential factors of the design of payment, which lays a theoretical basis for the latter half. Through a thorough research of the old system of HW Company in Hangzhou, it analyzes the problems existing in the previous salary system, which include the lack of internal consistency, poor transparency, an irrational structure, poor communication mechanism, as well as not-really- performance-related issues, and suggests a new design, in which it explains fully the important roles the salary system plays in enterprise management.