A Generation Strategic Pay System Reform

With the rapid development of China energy industry and further deepening of reform of electric power system, a new competitive market mechanism has formed. After the separation of factory and network and reconstruction of power supply market,the electric power companies will face fierce competition never happened of before, brought of both opportunities and challenges, which will determine the destiny of them.Compensation becomes, at market economic times, one of most important factors of HR values. A scientifically designed compensation management system is key to solve HR problems, which becomes powerful tool to retain talents in electric power companies of our country. Proper compensation strategy can effectively inspire the enthusiasm of employees , and in turn will attract and keep one competitive and high quality team in companies, which are good for their survival and development in the knowledge economic society when all companies are competing human resources fiercely. The original strategy in companies absorb management methods in planned economic days, most of which cannot be adapted to the current marketing economic circumstance. Thus it is of necessity to research new compensation strategy to be applied to them.This paper, on the basis of strategic compensation theory, did a few analysis and discussions on a couple of problems of compensation strategy in electric power companies according to the current market circumstance, combined with characteristics of a nation-owned power plant A. This paper mainly includes five parts. The first part describes research background, research problem, research methodology and the basic framework of this paper; the second part does retrospection on theory and knowledge of compensation management; the third part introduces current situations of power plant A and analyzes main problems of compensation management before reformation; the fourth part discusses reform direction of compensation management for power plant A; the last part of this paper did further research on how to set up compensation management system to support the strategic goal of power plant A based on the specific case of its compensation management.