Chinese Family Businesses In Transition, Pay Incentives

In China, when a family or a few close alliance relationship with the family-owned businesses of all or part of ownership and control, directly or indirectly, the right of the operation of enterprises, the enterprises is the family business. According to statistics, after 20 years of development, in China's non-public sector economy, family businesses make up at least more than 90 per cent for China's socio-economic development has made tremendous contribution.There are a lot of the family business and can not hide its internal unreasonable, in the family business grow to a certain extent, it will face, such as: a shortage of human resources, principal-agent problem, the reconstruction and business enterprise system strategic plan and other issues, which require mature family enterprises in the capital accumulated to a certain degree, the "second pioneering work", that is, institutional restructuring, the transition to a modern enterprise to enhance the competitiveness of enterprises. This is eager to build family business incentive pay mechanism of one of the important reasons. Second, the majority of family enterprises, and talent is the driving force for the development of family source, the core competitiveness of enterprises is an important organizational part of the family business the driving force for a smooth transition support. Resolve the internal driving force for development, and is related to the smooth transition Family Business, "second venture" the key. Construction of the pay incentive mechanism perfect family enterprises smooth transition and to enhance the core competitiveness of enterprises is important between the inherent logic of relations. What is a reasonable use of incentive pay mechanism retain qualified personnel and make good use of talent, good talent to play the greatest potential for the rating system is very tight family enterprises, the very great significance.Based on the above remuneration incentives for the analysis of the importance of this paper use has been absorbed in the large sample survey results and on the basis of the family business through the SC company, representativeness of the study, in view of China's current pay mechanisms common problems, such as: the low level of overall pay, the pay structure is irrational, and focus on short-term returns, the lack of internal stability, and so on, with different stages of development in family enterprises, enterprise groups, improve the design of the pay package. From the family business enterprises within and outside the two-pronged operation mechanism, and creatively put forward a number of practical problems to resolve enterprise ideas and methods to the development of the family business can be used as reference values.