The Labour Market Status Of Enterprises In Our Country The Influence Of The Compensation Plan

With the accelerated process of economic globalization and economic times tocome, it has been creating unprecedented opportunities and challenges for thedevelopment of the enterprise. Business success increasingly dependent on knowledgeand competency of the talents, and competition among enterprises is more of TalentWar today than the traditional competitions of products and technologies. Certainlythat Total Reward strategy is playing more important role on inspiring and retainingtalents, thus how to define an effective and practical total reward strategy andcompensation system with linking to the company business objectives, aligning withcompany culture and expectations will be very critical to Human Capital Strategydefining so as to impact the enterprise’s business target and result achievement. Aneffective compensation system should be acting on attracting talents, drivingindividual’s behaviors, motivating people to develop competency and knowledgewhich the company need for business development. Additionally, an effectivecompensation plan should be assisting the company working towards long termsuccess through attracting, motivating and retaining people effectively. It’s worthy tohave a deeply diving and research as an important agenda.This article starts with the current China labor market situation analysis, to betterunderstand the impact on enterprise’s compensation systems, and analyze the causesof of the market compensation conditions for an clear inspiration of enterprisecompensation system or plan. On the new concepts of total reward, enterpriseintegrate learning and capability development, career development, peoplerecognition and connections,etc to give concrete categories of the total rewardpackages for planning. To elaborate multiple approaches various by different type oftalents or positions, the model might be different aligning with business needs. In thearticle, a software company A is selected for an instance to study and practice on howto set up an effective total reward system to meet the business development strategy.