Analysis Of The Industry Characteristics And Employee Compensation Level And Growth Rate

According to the data provided by the national bureau of statistics, Ministry of Labor and Social Security shows that although the growth of compensation has become the normalization, the compensation gap widened gradually as the industry segmentation. For example, the highest compensation is2.63times over the lowest compensation in Year2000,however it widened to4.7times in Year2008which the international standard level is3times. In recent10years, the compensation of technology-intensive, capital-intensive industries and emerging industries increased quickly especially those of some state-owned monopoly industries grew to an amazing level. At the same time, the compensation of traditional industries increased slowly. It is important to analyze the influence of different industry characteristics to employee compensation because the compensation gap between different industries is more and more obvious. By this way, the compensation plan can be optimized and the enterprise will be developed.Based on reviewing the study about employee compensation and industry characteristics, firstly this paper define the relevant concept, sort out the basic theory of compensation, industry characteristics and their theoretical relationship and effect mechanism. Secondly, put forward the assumptions, build the model, define variables and select samples of listed companies from2002to2011cover22different industries. Thirdly, describe the change of employee compensation, the four industry characteristics. In addition, verify the influence of the industry characteristics to employee compensation by the regression analysis. Finally, put forward optimization suggestions on different industries according to the research conclusion.Based on empirical research this thesis draws the following conclusion:(1) Employee compensation level raised but growth rate was different, for most industry, the industry competition degree was roughly stable, industry life cycle can be clearly divided, industry state-owned monopoly degree decreased by volatility, and industry technical level rise by volatility;(2) As to the compensation level, industry competition degree and industry life cycle have a significant negative impact but industry state-owned monopoly degree and industry technology level have significant positive impact;(3) As to the compensation growth rates, industry competition degree has a significant negative impact but industry state-owned monopoly degree and Industry technology level have significant positive impact, which the industry life cycle has no impact;(4) The study also showed that the influence of industry state-owned monopoly degree and industry technology level is more powerful than other two industry characteristics. For example, the industry technology level is the most important to compensation level and the industry state-owned monopoly degree is the most important to compensation grow. In this paper, the innovation points are:(1) Analyze the influence factors of industry level rather than enterprise micro level or social macro level. It gives a new perspective to give explanation of the gap between different industries;(2) Expand the research scope to employee compensation system when the existing research mostly focus on executive compensation.