Small And Medium-sized Private Enterprise Incentive Compensation Design

As the competition goes more and more fierce, the talent is becoming the key factor for an enterprise to achieve success. Each enterprise does its best to attract the elite. The measures like increasing the welfare, attaching great importance to the training, providing the chance and the stock option system are implemented in the companies. In the contest for the talent, the salary system is a compulsory part which indicates the value of the personnel in the straightest way. Therefore how to make the salary system that agrees with the development strategy of a company is an important task in front of the Human resource department of every company.This article is mainly based on salary management theory and incentive theory and gives an expatiation on salary management and incentive theory; the article analyzes the mentioned problems and suggestions through the analysis of collected second-hand information, combining the analysis method of demonstration and criterion, quantification and qualitative analysis. The article mainly includes:Firstly, this article defines the connotation, construction of salary and the connotation of the incentive salary with consideration of the meaning of salary both at home and abroad, then this article gives an expatiation on salary management and incentive theory.Secondly, the article defines the small-medium sized individually-run enterprises based on the survey of their general situation, and analyzes their existing problems and corresponding reasons in the salary system part.Thirdly, this article takes the incentive salary system of small-medium sized individually-run enterprises as an example to demonstrate the thinking and the way of designing an incentive salary system which also is an original part of this article.At the last part of this article, this article makes a summary for the main viewpoints and thinking.