A Study On The Relationship Between The Internal Salary Gap And The Growth Of Small And Medium - Sized Enterprises

In the national economy, SMEs play an important role and they are critical energy for national economy development. Therefore, how to enhance the growth of SMEs has become the top task for the current economy. During the time of knowledge economy, it is how to give human resources a better play that could make a big progress for companies, especially for SMEs. It is well-believed that Scientific and reasonable compensation system is one of the most effective ways for human resources.however, there is more focus on the number but the gap of positions in the payment system design, which causes wider and wider internal payment gap. So, what influences enterprises will have about the gap of payment? Is it larger or smaller payment gap that will promote enterprises’ growth? Based on these questions, the paper choose listed companies on small plates, which could ensure the date’s reliability and accessibility, to represent SMEs. And it selects listed companies’ data information during the year of 2010-2014 in Shenzhen Stock Exchange small plates as samples, the relative payment gap between the executive team and ordinary employees as companies’ inside relative gap and the factor analysis as measure to calculate the growth of companies so that we could study what effect the internal income gap will bring to the enterprises’ growth in. The goal of the research is to put out some effective advice on the further improvement of SMEs’ payment system, which will drive enterprises pay more attention to the payment gap of different levels and set reasonable payment system to enhance the growth of themselves.Specifically, the study uses theoretical analysis and empirical methods to research the internal payment gap’s effects on the growth of enterprises. Firstly, the background,research questions, research purposes and research thoughts are introduced and some foreigner related papers are collected to build the framework and research methods of the study. Secondly, the concepts, such as SMEs, executives, staff salaries, the payment gap and the growth of companies, are defined and enterprise growth theory,tournament theory and behavior theory are talked in the text to make the article more clear toward readers. Based on them, the paper puts forward relevant assumptions combining with Chinese current situation. Finally, listed companies’ data information during 2010-2014 in small plates are regard as samples to determine variables and models. It will complete the descriptive statistical analysis of the variables and the explanatory variables, the control variables and the dependent variables’ correlationanalysis and model’s regression test and analysis.Through empirical research, there are some conclusions as follows: At the beginning, the gap of executive payment plays a significant positive impact on business growth but no range effect, which suggests the wider expansion of executive payment gap will improve the growth of enterprises. However, the gap between executive and the staff not only has a significant positive impact but also have a rang effects, which suggests that it will motivate the staff’s working enthusiasm if the payment gap expands between the executive and the staff in a certain range, and then improve the development of the enterprises. Also, it will reduce the enthusiasm if it exceeds the threshold, which is not conductive to the enterprises’ development. What is more, the payment gap of state-owned enterprises, non state-owned enterprise and the ordinary present interval effect, and the payment gap between state-owned enterprise executives and ordinary employees play a lower impact than the non-state enterprise.Last but not least, the paper combines the study’s conclusions and the current payment system to put forward some proposals and advice around our national salary system’s making and disclosure, also it put out some shortcomings of itself and the future prospects.