Compensation Analysis And Design For A Software Company

As today's world enters an economic era of information revolution and globalizing markets and with fierce competition in many dimensions of the global market, any enterprise in the game needs to be able to establish and execute a solid and effective strategic plan in order to survive, stay ahead and to ensure continual growth. One of the most important strategic aspects of an enterprise is its human resources, which is why a highly strategic remuneration management is essential for an enterprise to gain a competitive advantage.In the face of this constantly competitive environment, especially in the realm of human resources, the methods of recruiting and retaining talent has become the focus of many an enterprise. One of these methods is creating a just and fair remuneration plan. A good remuneration plan can not only cut labor costs, but can also have a large positive effect on employee motivation, productivity and creativity. By including remuneration as an important element in an enterprise's framework, its resources can be optimally allocated, etc. An effective remuneration scheme can also bring superior competitiveness through an enterprise's human resource, balance benefits between enterprise and employees, allow the development of an enterprise's overall strategy, and under the guidance of valuable ideas, can meld company and people into one entity.This thesis will first introduce several concepts of remuneration, including the definition of remuneration, its objectives, various remuneration systems and their important functions. The discussions will focus on the intrinsic and extrinsic elements of remuneration. The thesis will bring an overall remuneration scheme to light through exploring the history of remuneration systems and how it has evolved and developed. After that, it will combine Y theories and related theories to summarize the concept of an overall remuneration scheme and elaborate on the different parts of the scheme and its important components, including basic wages, variable remuneration, indirect remuneration, and external and internal non-monetary remuneration.The remuneration system of a foreign software company will be used as a research model. Through examining the foundation of the company's current remuneration system, thorough research and analysis of its remuneration is made while targeting the main problems of remuneration systems in trend. From there, suggestions can be made to rectify the system as well as a program for improving the system. The program will explain in detail the job analysis and occupation differentiation involved in this rectification, the evaluation of different job positions, the different levels of remuneration in the scheme, the evaluation employees' abilities and their positioning, the mechanics of the remuneration system and flexible benefits. This creates for the enterprise a scientifically based remuneration structure with effective changes, creating a complete remuneration system that supports and complements its development.