Research And Design Of The Compensation System In XC Company

The enterprise compensation management is an activity which is based on the enterprise development strategy. According to the internal and external situation of the enterprise, the entrepreneur makes the correct choice of compensation strategy, designs the compensation system and implements dynamic management to promote the strategic goals.XC company is a state-owned company established with the approval of the government in September,2004, whose main business is urban and rural infrastructure construction, land arrangement, investment, asset management and real estate development. The goal of the company is to improve the environment and build a better city. After ten years’development and growth, XC company has become prosperous and undertaken the important function of investment, while is also facing strategic opportunities. At present, there are a series of problems in the compensation system of XC company such as lack of flexibility and motivation, causing some employees slack off. XC company’s diminished appeal to the key workers is very adverse. The reformation of the compensation management system is already imminent.Based on the above issues, XC company needs to have a long-term strategic vision and pay more attention to employees’career development and performance improvement. This will have positive effect on company’s sustained prosperity. Therefore, designing incentive compensation system is of vital importance to talent retaining. This article has designed questionnaires correspondingly to the realities of the XC company’s compensation system attempting to know exactly the employees’ satisfaction of the current system. With a combination of modern salary theories, the proper compensation system scheme for the XC company has been put forward through strategic analysis, position analysis and evaluation, market salary investigating and positioning, and the process of excogitation, implementation and assessment. This scheme is based on the compensation management which differentiates implementation for different types of position such as annual salary performance system for core talents while the standard for that of general employees is associated with their completed projects to better play its role in the incentive compensation system.The author hopes that the new compensation system will help employees to achieve their personal goals as well as achieving company goals. It will lay a good foundation to enhance the level of human resource management, improve employee morale and promote the company to enhance the competitiveness. At the same time, employees will work hard because they know their efforts will be rewarded and acknowledged. This thesis also gives some reference and enlightenment for the same type of companies.