Knowledge-intensive SMEs Compensation System Design

Since China’s reform and opening up to outside world and to development the socialist marketeconomy, China’s SMEs have achieved rapid development, added new vitality for economic development.The arrival of the era of knowledge economy, the knowledge-intensive small and medium enterprises tobecome the most active factor in the market economy, they not only promote economic development, andpromote the advancement of technology updates. For knowledge-intensive small and medium-sizedenterprises, the most important resource is knowledge-based employees, as the creators and users ofscience and technology, and their enthusiasm and creativity is a knowledge-intensive SME survival,development, and gain a competitive key.So, in today’s competitive business survival environment, knowledge-intensive SMEs in thedevelopment and utilization of human resources, is the key to the steady and healthy development of theenterprises in the fierce market competition. Human resources management functions, the design of thecompensation system is a top priority, the strategic objectives of the enterprise refined strategic floorconversion of specific embodiments of work for employees, and guide and motivate employees to completetheir own work to form an important part of the "community of interests" of the enterprise and itsemployees. Reasonable and can play a good effect Compensation system not only can enhance internalorganizational cohesion and momentum, can also enhance the competitiveness of enterprises outside.Knowledge-intensive SMEs must introduce state-of-the-art human resources management thinking, toestablish a new salary management concept, the use of reasonable methods, design science, targeted andeffective compensation system to meet the needs of employees and retain existing talent attract external talent, give full play to the ingenuity of a knowledge-based employees and work actively to maintain thecompetitiveness of enterprises, promote the healthy development of enterprises.Throughout China’s knowledge-intensive small and medium enterprises, the level of salarymanagement is different from each other, the compensation system design is unreasonable and notlong-term effectiveness. Knowledge-intensive small and medium enterprises because of its own high-risk,high-tech, strong competition, the design of the compensation system is put forward higher requirements,not only to both flexibility and incentives, but also consider the effectiveness of long-term. In this wancan make the internal fairness of the compensation distribution to external competitiveness andattractiveness. How knowledge-intensive small and medium-sized enterprises to establish a scientific andreasonable and has the effects of long-term incentive compensation system, it is the focus of this article.This article based on the theory and practice about salary, in the YS enterprise as the researchobject, with the scientific process, and ways to redesign its development strategy Compensation system.Article Firstly, from a theoretical way, by the method of literature research in compensation managementreviewed the compensation system design is based on the theoretical, to review compensation managementat home and abroad Research. Then, the compensation system design models and processes, summed upthe impact of factors affect the compensation system design, define and elaborate the concept ofknowledge-intensive small and medium enterprises, analyzed by the method of the comparative studydescribes the knowledge-intensive small and medium-sized enterprise’s own characteristics,knowledge-intensive small and medium enterprises pay system design status and existing problems. Next,use of the case studies, to have been involved in the the YS corporate human resources managementconsulting projects, for example, insist on the principle of combining theory and practice, based on acomprehensive remuneration system design, based on the YS their own characteristics, through scientific the reasonable process redesign for YS enterprise more streamlined compensation system. Finally,re-design and implementation of YS enterprises compensation system evaluation, comparing thedifferences in the original remuneration of the system and the existing salary system, reasonable at thiscompensation system design and inadequacies. The article summarized the main conclusions, pointed outthe limitations of the study, recommendations for future development. I hope to provide a point of referenceand learn from other knowledge-intensive SMEs compensation system design.