Strategic Compensation Management Study

Entering WTO and the globalization of world economic give great competitive pressure to Chinese enterprises. To develop and exist in more and more hard condition, our enterprise must have their own competitive strength. The management giant Peter Drucker said that enterprise had only one kind of resource, that is human resource, management is to develop human resource so that we can work better. The strategic human resource management is proved a very important method of making sustainable competitive strength, and the strategic salary management is the most important part of the strategic human resource management, and it is also the most important carrier of enterprise competitive strength.In this article, the author discussed how can enterprise gain competitive strength through strategic salary management and realize the reduction of cost according to the theory of strategic management and competitive strength.The author thinks that the strategic salary management should consider four aspects, that is the change of inner&external condition, the culture and strategy, the salary institution and the design method of the salary. And in this article, the culture and strategy and the analysis of salary institution is mainly discussed.First, the author totally described the development of enterprise salary management and analysed the shortcoming of the traditional salary institution and the necessary of establish strategic salary, after that, the theory base of strategic salary is discussed, includes: the four theme of salary distribution of salary, the aim of salary distribution, the model of salary system based on the enterprise strategy. The main part of this article is to discuss. the main problems of establish strategic salary institution , includes: the establishment of salary strategy, the reason of strategic salary institution, the selection of salary method,salary level and construction, the selection of salary model according to deferent stuffs. At last, the author give his requirement to the shift of the role of enterprise human resource management.Synthesis is creation and synthesis need systematic think. The creation of this article is the deep and systematic analysis of the several main problems of strategic salary management.The author thinks, the top goal of strategic salary institution of to realize the strategic goal through strategic salary management, in order to reach this goal, it is topimportant to keep the core workers who can realize the strategic goal of enterprise and to raise their passion. The manager shall consider the external compete of salary , this concerns the level strategy. To raise the passion of core workers shall consider the inspiration of salary, this concerns the structure strategy of salary. So the strategic selection includes the level strategy and structure strategy. Sure, the selection of strategy shall be made according to the whole enterprise strategy. And this is the strength of strategic salary management, the author hope this article can give instruction to enterprise on the change from traditional salary management to strategic salary management.