Research On Salary Management Of Industrial Group

In today’s modern enterprises, human resource has become the core of the company’s comprehensive strength. Compensation is an important tool of human resource management. How to link compensation to company development strategy, attract and retain talents, guide employee behavior, promote labor relationships, so as to enhance company advantages and ensure sustainability has become a hot topic of human resource management.With the rapid development of social economics and globalization, there is a growing number of multinational companies expand their business in China. Meanwhile, domestic enterprises actively explore diversified business model. Business group become the dominant form of the organization. Due to the nature of business groups, usually can be trans-regional and cross industries, the organization tend to be complicated. Senior management of the enterprises are giving more attention on how to design a rewards system under a unified compensation strategy with consideration of industry, location, internal equity, external competitiveness and motivation to employees.X Group comprises a group of world-class companies focused on resource-based manufacturing industries. Assets held by X companies exceed US$15 billion with a combined workforce of 50,000 people worldwide. X companies are involved in various business segments including Paper&pulp, Agro industry, Dissolving wood pulp & viscose staple fiber, Oil&gas. The business units in China locate in more than 10 cities including 1st tier cities like Shanghai, Beijing,2nd tier cities like Nanjing, Fuzhou, and 3rd tier cities like Rizhao, Jiujiang.In this paper, X Group is taken as an example to investigate the problems of its present salary system. First, on the basis of in-depth interview and questionnaire, the staffs’reaction and their satisfaction towards the compensation system are the main factors to be considered. The related data is also collected to analyze and conclude, as well as some basic principles of compensation mechanics, such as fairness, competiveness, effectiveness and so on. Second, combined with actual situation, the compensation system and its supporting measures are designed scientifically by learning from the different theories home and abroad. The new system has solved many problems, such as internal equity cross business units and functions, external competitiveness especially in 2nd and 3rd tier cities, employee relocation and such, which has a strong practical significance for the management of human resource.