The Improvement Research Of Salary System For D Company

Facing more and more intensive market competition and challenges, it hasbecome a consensus of business managers to focus on human resourcemanagement to gain competitive advantages thus achieve business strategygoals. As the competition of human resources has an important impact onbusiness competitiveness, how to attract, retain and motivate talents hasbecome a primary goal of enterprises salary management. The design ofsalary system-whether it’s reasonable or not, whether is competitive or not-decides whether an enterprise is able to effectively attract, retain or motivatetalents in this competitive market, also plays an important role in maintainingthe core competitiveness of enterprises. Being a core of human resourcemanagement, salary system is so important that it needs to make its owncontribution to the establishment of advantageous competitiveness of theenterprises and the achievement of the business goals.This article starts from the related theories on salary management, throughthe intruding of the definition, principles, purposes and the design process ofsalary management, and then leads to D Company’s salary managementproblems. D Company grows out of a traditional state-owned enterprise,influenced by the old system. Although the current salary system takesposition and skill salary system as a starting point, without a proper position evaluation and distinction, it is more related to administrative level andworking experience than actually reflect the value of each position, whichleads to the lack of equity internally and the lack of competitivenessexternally comparing with the market. Based on scientific salary managementtheory and practical experiences, using scientific tools and methods to try tobuild a salary system which is more suitable to company strategy, enhancingthe incentive effect and equity, increasing employees’ satisfaction to bettermotivate the enthusiasm and creativity of the employees, will achieve awin-win situation between the enterprise and employees. The study islaunched in order to achieve the maximum performance by salary system ofD Company.This article is divided into six chapters. Chapter I is the introductionsection which explains the significance of the topic, research methods andstructural framework. Chapter II describes the related theories of salarymanagement. Chapter III shows the current situation of salary managementof company D and explains its problems. The fourth chapter illustrates indetail the re-design D Company’s salary system step by step and the methodsused. Chapter V is the evaluation compared the new salary managementsystem to the old one. Chapter VI summaries the full study.