R & D Personnel Variable Pay System Design

The innovation race of knowledge and technology is increasing overwhelmingly nowadays under the environment of economy globalization and knowledge economy spreading, and R&D achievements are being transferred into practical productivity with huge size and speed. Under this circumstance, our enterprises are facing both domestic and international fierce competition, and to improve core competition capability has become the key to the survival of them. The enterprises must carry out technology innovation to keep successful and energetic, in which R&D employees, as one of the main innovation factors, are the most active core resource. Therefore, how to inspire them and keep them vigorous is critical to the enterprises' development.The reformation of pay system, as the most important economic way to inspire R&D employees, has been the main problem before enterprises. The paper, by referring to domestic and overseas research, intends to develop a variable pay system model for R&D employees to improve inspiration level.The paper systematically discusses a variable pay system model for R&D employees on the base of variable pay theory. The very beginning of the paper researches R&D employees' characteristics and specialties at R&D work, and gives principles, steps and influential factors of variable pay system designation for R&D employees. Then it studies the first allocation, including team performance indicators and first allocating mechanism, which is established under the help of Economic Value Adjusted and Balanced Score Card theory. Followed is the discussion of second allocating mechanism and three employee performance indicators are put forward: capabilities, results and manners. The second allocation casts much emphasis on R&D employees' capabilities that are measured by their profession level scores, utilizes R&D program process to stand for work results, and awards manners weight of 25% of the total. On specific delivering way, the author studies relative literature and suggests that delivering ways should be established differently according to profession levels.The characteristics and innovations of the paper are that it adopts the variable pay into pay system for R&D employees and puts forward relative principles, steps and influential...