Research Of Salary Incentive In State-owned Enterprises

For a long time, state-owned enterprises, which shoulder the responsibility of maintaining theoriginal value of the state-owned assets and its increment, develop flourishingly as they can retainand attract talents. However, under the influence of planned economy, the incentive effect ofsalary mechanism in SOE is weaker than that in private enterprises and foreign corporations,which has a series of adverse effects on the formation and growth of talents. This thesis takes JHCompany, a typical state-owned enterprise as an example, analyzes related factors that affectincentives in salary mechanism by designing a set of salary satisfaction questionnaires and testingemployees’ satisfaction of the existing salary mechanism through questionnaire method andinterview method. According to the research result, the enterprise salary mechanism hasdeficiencies in internal equity, fairness, personal promotion expectation and performance. Inillusion to these problems, the author redesigns the salary system of the enterprise through jobevaluation, point-factor method and improves its performance appraisal system through balancedscorecard and key performance indicators (KPI).In this paper, through the investigation, the case analysis and redesign, some fresh data areexpected to be useful to reference to the study on state-owned enterprises incentive mechanism.