Remuneration System Design For EDX Pharmacy

Currently in China's medicine retail industry there are a large number of small pharmacies, who usually take primitive management methods. In order to survive in the fierce market competitions and maintain robust development, small pharmacies must build a feasible, scientific and reasonable management system which suits its own actual situation, thereof the salary system has the first priority. This thesis takes EDX pharmacies as example, try to find out how small pharmacies should design a remuneration scheme to fit their own reality and development, which has certain application and reference value for other small pharmacies in pharmaceutical retail industry.This thesis takes the research method of combination with theoretical analysis and practical application, select a suitable theoretical basis based on the specific circumstances of EDX pharmacies and redesign the salary system by using of the scientific remuneration design tools and methods.First of all, make analysis of current pay system of EDX drugstore to clear its major problems: (1) there is no sales target of the whole year, can not guarantee the long-term continuable development of the drugstore. (2) There is only fixed salary, but no performance-linked floating salary, lack of effective motivation. (3) Annual salary growth is too mechanical, the annual salary increase standard is too vague and subjective. (4) Staff career path is not considered , which is not good for keeping good talent.Then, in view of the above mentioned problems, combined with the market situation and the development of EDX pharmacy itself, we confirm the necessity of pay system redesign.Then comes the introduction of a series of preparatory work for pay system design. First of all, define the principles for this pay system design based on the actual situation of EDX pharmacies: balance between internal equity and external competition; add floating salary, strengthen the incentive effects; employee income combined with corporate performance, etc. Secondly, determine the pharmacies business strategy based on SWOT analysis, namely stable development strategy with differentiation. Thirdly, according to the business strategy of EDX pharmacies, the result of staff salary satisfaction survey and market salary survey, determine to take the hybrid compensation strategy and define the overall structure of the remuneration system, namely fixed salary + floating + overtime pay + supplemental wage. Next, carry out job analysis for the primary posts of pharmacies, build a competency model. Then, all the posts on pharmacies are assessed according to job analysis results, a clear internal grading system is established. In addition, there are two career paths for staff: management series and professional series.According to the above principles, combined with pay-related theory, selecting post, person and performance as the main factors for payment, Chapter IV in this thesis redesigns the remuneration system for EDX pharmacy.First of all, about determination of employee post level and promotion, it's determined to define the employee's post level according to education background, work ability, job title, qualifications etc, and make detailed recommendations about promotion standards for various posts. And then, calculate the salary of each post-level according to current post average wage of EDX pharmacy. Next, on the basis of sales impact model and job analysis and assessment result, determine the fixed-floating ratio of all positions. And then calculate fixed salary and floating salary of all positions.Considering that EDX drugstore has no performance assessment now and can not calculate the floating salary, we build in section IV of chapter IV specifically a suitable performance assessment program with high feasibility, to make the new salary scheme perfect and more feasible. Take the key performance indicator assessment method, combined qualitative assessment with quantitative assessment, design a detailed performance evaluation sheet respectively for two major appraisal objects salesmen and branch leader..The last chapter evaluates the effect of the new salary scheme and makes suggestions for the implementation of the new program.