Research On The Employee Incentive Mechanism Of Company F

With the depth of China’s reform and opening-up, and various industries’cooperation between mainland and Taiwan district, the operation focus of theTaiwan-funded enterprises are gradually transferred to the Chinese mainland.However, as the changes happened both in the international economic situation andthe Chinese mainland overall investment environment, Taiwan-funded enterprises arefacing a more fierce competitive environment compared to the past. The competitionbetween enterprises will focus on talent after all. Therefore, the questions likeincentive system effectively and how to improve business performance areincreasingly becoming the primary problem for the managing directors ofTaiwan-funded enterprises.Company F, which is a subsidiary of one of enterprises listed in the Fortune500,has corresponding incentive system. Like other Taiwan-funded enterprises, it is alsochallenged by employee motivation in the new environment of increasing competition.The aim of this article is studying and concluding its operation’s mode throughanalyzing employee motivation of Company F. At the same time, this article willpropose effective countermeasures to improve and optimizing current situation withcombining the investigation of staff turnover cause and analyzing the main problemsof staff motivation, as well as in accordance with the company’s actual situation andmain motivation theories, such as Maslow’s hierarchy of needs, Herzberg’s two-factortheory, and so on.Firstly, the article studies incentive operation mode of company from three levels:material incentives, mental stimulation and development incentives. With variousforms, the material incentives of Company F has its unique features, like it will signincentive contracts with special talents, allocate house to core backbone, and provideself-insurance fund; focused on staff caring, its mental stimulation pursuits continuousimprovement; the company also has training system in the development incentive, allthese motivation systems could be references for other enterprises. Secondly, thisthesis also made deep analysis on company motivation system, and found someproblems. For example, in material incentive level, there were irrational pay structure, big gap in the salary level for some positions between Company F and otherenterprises, weak connection in pay and performance, and rigid pay policy; theproblems on mental stimulation involved aspects including that performance appraisalwere little, the promotion of cultural activities was formalization to some extent, andthe implementing for staff caring was not full-covered; meanwhile, the problems thatthe process of cadres localization is slow and job rotation lacks of mechanisms andconstraints exist on development inventive. After understanding and analysis of theproblems deeply, this article presents some proposals on material incentives, mentalstimulation and development incentives respectively. The company, from materialincentive aspect, should build flexible compensation strategy to enhancecompetitiveness and incentive, set up performance-oriented pay system, optimize thesalary structure and increase salary levels appropriately. From mental stimulationpoint, it should put strengthening the staff caring and deepening the cultural activitiesas main line, and plus broadening performance appraisal and management of rewardsand punishments. At last, for the development incentive, the company should increasecadres’ localization, smooth technical positions and staff at the grass-roots leveldevelopment path, in addition establish the job rotation mechanism to strengthen theincentive achievement.