Psychological Theory In Salaries And Benefits Design Applications

Psychology plays a very important role in Salary & Benefit designation, as well as in the human resource attraction and reservation. There are various structures for the Salary & Benefit for a company in real practice, including: Material Incentive and Immaterial Incentive; Short-term incentive plus Long-term incentive; Fixed salary and floating salary, and Cooperate Culture incentive etc. All the designation should base on the difference of the psychical expectation of different people in order to reach the psychical satisfaction of them.This article aims at designing the best salary & benefits structure on the basis of psychology theories, by analysis the favourates of people in different ages, positions or genders to the different style of incentive of material and immaterial. In addition, this article also provides solutions and suggestions for the salary & benefit structure failed to meet the expectations of people, in order to help the management in practice, avoid conflict between management and staff as well as to keep the employees'stability.