Research On The Optimal Design Of Compensation System In ZF Company

In the age of knowledge economy, the competition among enterprises becomes fiercer and fiercer. With the change of market environment and the development of the enterprise, it will be the competition among human resources. As the core of the human resource management, salary management plays irreplaceable roles in the realization of human resources and the development strategy of enterprise. Establishing a scientific, reasonable and feasible compensation system, enterprise can attract talents and keep talents effectively; meet the different needs of personnel, Keep the core competitiveness of the enterprise, and get a stable and sustainable development. How to establish an effective salary and compensation system according to the enterprise situation will become address urgently.In this paper, the research object is the compensation system of ZF Company. ZF Company is a titanium manufacturer. After the reverse period about the influence of the financial crisis, ZF Company speed up the adjustment and planned for five years strategic objectives combined with the characteristics titanium industry and the enterprise itself:strengthen the brand construction, the construction of ii project, listing overseas success, get the authentication of the international aerospace and so on. These strategic goals require a lot of talents. How to attract high-quality talents, keep the core talents, improve the existing staff degree of satisfaction, and motivate their positive initiative are the main content of the salary system optimization.Based on the related salary management theory, the compensation system of ZF Company was optimized, combing with titanium industry development situation, the company’s human resources management status and ZF Company problems of the compensation. The new salary system was evaluated and the safeguard measures were put forward. The compensation system optimization includes four aspects as following:First, it set the post salary level through the position analysis and post evaluation. The wage level rose overall. It improves employees’pay satisfaction; solve the problem about lacking of external competitiveness. At the same time, the proportion of the core talents was larger.Second, the performance-based pay is based on performance assessment results. The design of performance salary is closely linked with department (workshops) performance evaluation and individual performance evaluation. It established the coefficient on individual performance evaluation, widened the gap among salary distributions, and reduced the lack of incentive compensation.Third, training and annual vacations were supplements of welfare design. It enhanced employees’ belonging and the cohesive affinity of the enterprise.Lastly, to attract and retain more highly skilled and highly educated talents, it put forward many measures to meet different needs and expand the channel of the promotion in the optimized design.