| Software companies are in the rapid development period. In order to get success in the most competitive industry, the corporation depends on research and development employees. The scientific and effective compensation structure can stimulate research and development employees* creativity and enthusiasm. Therefore, it is urgent for software companies to design compensation structure, which suitable for their strategy.This article is established in the actual instance of company LC. The first part of this paper introduces the definition of compensation, and the structure of the compensation, reviews the relevant theories and the framework of competency-based compensation system. Second, it analyzes the problem of current compensation system, such as external competitiveness, internal equity and salary incentives, points out the limitations of it, which based on the investigation of the satisfaction of the current compensation system. Third, the paper analyses the significance of adoption the competency-based compensation. Because it can maintain the competitive advantage, promote development of the company, and attract research and development personnel. Third, combined with the characteristics of research and development personnel, this paper builds the capacity of the model to evaluate capacity, and establishes a pattern of the competency-based compensation system. This system combines broadband compensation with the competency-based compensation, and it suits for research and development personnel of LC. This system integrates the relative value, but also takes into account the different ability level between research and development personnel, which makes the compensation system more competitive, more stimulating. Finally, the paper introduces the safeguards system, innovations and limitations of the compensation system, and designs the future of the compensation system. |
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