The Improvement Plan Of CEC Company’s Salary Incentive System For The Knowledge-type Staff

CEC’s knowledge staffs with multiple skills have abundant professional knowledge, strong technical skills and high evaluation of themselves. These characteristics make CEC confront with serious challenge of knowledge staff’s low loyalty and high demission tendency. A management diagnosis on CEC’s salary management system was carried out based on the above characteristics and requirements. The result reveals the major problems as follows:lack of strategic thinking and the structure unreasonable, without strong relation with the market; short of flexibility of payment which delays the timely encouragement of staff; insufficient fundamental welfare; lack of internal equality and external competitiveness due to unsophisticated performance evaluation system; high staff turnover rate of knowledge staff resulting from insufficient incentive caused by the narrow promotion channel and so on. These could explain the increasing slacking off and job-hopping.A reasonable and scientific salary incentive system, which meets the requirements of CEC, should follow the eight major principles for salary design, namely, fairness, economy, encouraging, competitiveness, strategic orientation, emphasis on ability and performance, acceptance and legitimacy, Then the conception of broadband salary is introduced. Using post and skill as two major variables, the basic salary and post allowance are defined as the regular parts of PBP and SBP. Then, the performance of the personnel decides their performance bonus in PBP and SBP. Therefore, a new ABP salary system which could reflect a equal payment is set up. Moreover, the registration allowance and examination awards are added as the floating supplement of the salary system. Finally, the optimization plan which is consisted of PBP, SBP, ABP, registration allowance and examination is established.Based on scientific analysis and assessment, this plan could solve current problems through multiple measures, such as, combination of long-term incentive with short-term motivation; introduction of Broadband payment into the post salary optimization in a bid to increase the difference between various levels; improvement of the performance evaluation system by developing new work mechanism such as report of the work time; supplement benefits particularly for effectively motivating knowledge staff on the basis of general welfare. In terms of the optimization, the plan sets two parallel promotion channels which are technical development and administration post. It increases the promotion chances for the staff as well as upgrades the professional administration of the company.