Compensation System Optimization Of SH Company

Compensation is one of the critical issues in management of human resources. This area is changing so rapidly, he contemporary business managers with unprecedented challenges. One reasonable and effective compensation system can not only effectively stimulate the enthusiasm and initiative of the staff, urging them to use their best effort to work for the target of the company thus the company’s efficiency could be improved, but also attract and keep in the company the excellent talents and outstanding administrative personnel required by the enterprise under such an environment where competition to have such talents is becoming increasingly fierce. As referred to the reforming of state-owned enterprises, it has become an urgent issue as how to attract, keep and inspire the talents. Therefore it is significant for the state-owned enterprises in the time of reform to design and establish a set of scientific compensation system suit to the actual condition of the enterprise.This article mainly researches on the compensation system of SH company, a state-owned enterprise.SH is one of the branches of Shenyang Water Group, mainly responsible for the maintenance of the water supply network, the management of the water users, the operation management of pressurized pumping station and water supply services and so on in Shenhe (formerly Dongling) region. In the era of constant change, social life level unceasing enhancement, the original happy feeling very strong water companies, in recent years the staff voices of discontent. However, incomplete position system, unreasonable salary structure, has been unable to meet the various needs of employees, salary system and the healthy development of enterprises has become the bottleneck of. As a water supply enterprise human resources management, which is more than ordinary employees have a more profound understanding of. Based on the theory of compensation management and design, this article makes an analysis in detail on present status of the compensation system of SH and proposes an optimization plan against the existing compensation system of the company.First of all, the article finds out the main compensation problems of SH by analyzing the existing compensation system of the company. Secondly, it quantitatively analyses all the stations of the company according to the human resource development strategy of SH and by using Hay Evaluation model, designs salary levels according to the assessment result, and then gradually design a set of broad banding salary scheme. Finally, it makes an analysis and summary on the desired result of implementing the plan and proposes measures taken to ensure the plan’s good running.