Full Incentive Corporate Pay System Research And Design

Nowadays, the compensation systems of Chinese enterprises face enormous challenges. On one hand, the establishment of modern corporate system and the development of modern compensation theory put forward higher demand to compensation management; On the other hand, there are many problems in compensation systems of Chinese enterprises. The compensation systems of Chinese enterprises are outmoded. They are not in accordance with the market economic system and have little incentive effect. Therefore, the reform on the compensation systems of Chinese enterprises is imperative.On the base of deep research on modern compensation theory and through analyzing of problems in Chinese enterprises' compensation systems, it is argued that the incentive compensation system should be designed to encourage all the staff in enterprises.The main idea of the incentive compensation system is that: Annual salary system applies to senior managers is to define their compensations as one year for a period and pay according to their merits. To ordinary employees, such as middle administrative staff, sales force, researchers, producers, position-based salary system is adoptable, which means that how much one earns would depend on which position he engaged in. Additionally, more flexible measures should be effective. Stock-based incentives, including stock options, should be introduced to key employees if state policies permitted. Systems of job evaluations, merits assessment, and so on, which are indispensable aspects of systematic human resource management, should keep in paces with the reform of compensation systems.