PC System Construction Of The Company The Ability To Pay

The competence-based salary system is based on the employee’s levels of knowledge, skill and professional quality which are served as the fundamental criterion for an employee’s salary. To put it simply, it means that no matter in which position an employee is working, or no matter what kind of work he has actually completed, the salary should be paid to him by the company only if he owns some certain knowledge, skill and experience. This salary system is now attracting more and more attentions in developed countries.PC Company is a large-scale and new chemical company, is to assume the construction, commissioning, production and operation of the supporting petrochemical project. In the company most employees who came from different sources are knowledge-oriented ones, it is very urgent to establish a set of salary system to unify the company’s salary management concept so as to speed up the project construction smoothly.According to the survey, the competence-based salary system has become a new favorite of salary management and international well-known enterprises have adopted or are adopting such system. It has not been very long since the competence-based salary system was promoted in China, and such system is mainly adopted by high-tech enterprises for the purpose of motivation of research and development personnel and technical management ones. As a representative of large-scale chemical enterprises, the personnel structure in PC Company is transferring into young and knowledgeable one. The competence-based salary system to be explored and established by PC Company is not only in favor of motivating its employees, but also in favor of providing greater reference value in researching similar enterprises.This is an application research paper. From the difficulties and issues in salary management PC Company is currently facing points of view, it has finalized the objectives and basic principles of salary management of the company on the basis of researching the competence-based salary theory and methods, and accordingly it has creatively proposed a position-based management mode of broadband competence-based salary. Through half a year’s operation practice, it was preliminarily verified that such system is feasible as a whole. During the design and research of this paper, it evaluates different positions within the company by means of incorporating the internationally popular Hay Job Evaluation Modeling with the position ranking method. On the basis of the position evaluation, the career development channel will be designed and established. It defines the competence ranking standard for each position from three dimensions:the depth and width of mastery of knowledge/skills in the field; responsibilities one can assume and the scope and difficulty of problem solving; work performance and experience. On the basis of salary survey, it creatively proposes to establish a broadband competence-based salary system which incorporates the employee’s position with his/her competence. The competence evaluation and pay determination of employees have been performed by using both the360Degree Evaluation and behavior recognition. At the end part of this paper, it analyzes the potential problems it may occur during the application of such salary system and proposes a solution aimed at each specific problem.Through this study, a broadband competence-based salary system has been preliminarily established in PC Company. From the operation condition situation of this system in the past half a year, the employee’s passion for learning has been continuously strengthened and employee’s competence been continuously increased. And all of this has promoted the project construction of PC Company to some extent.