Study On Salary Incentive Problems And Countermeasure Of HY Company

Since the implementation of economic reform and open door policy in China, there has been an overwhelming development of small-and-medium-sized private enterprises (SMEs), which significantly contribute to the improvement of Chinese economy and people’s living standards. In the same time, it’s an essential ingredient to develop China’s market economy. At present, with the increasingly fierce market competition, the small-and-medium-sized private enterprises face various problems in the development process, especially the problems in human resources management which includes the decision-making personalization, incompleteness of salary and encouragement mechanism, ignorance of enterprise culture and the neglect of HR training, having its own one-sidedness on selecting, cognizing and constituting talents. These can be adverse factors which impede the further development of SMEs. Salary system, as a fundamental part of the encouragement mechanism, can be directly related to employees’benefits and enterprises’sustainability and plays a crucial role in maintaining SMEs’competiveness in human capital.As an SME, HY Company is lack of human resource management system, salary structure is irrational and untargeted which cannot reflect staff’s demands and short of effective incentive. In this paper, HY is studied as a research object. The research is built up on theoretical analysis, literature analysis and interview survey. On the basis a large amount of literature review on encouragement theories, salary system and related topics, this research provides analysis to the main obstacles in HY’s salary system and encouragement policy. The potential problems in its encouragement mechanism and salary system hence is analyzed and studied in this thesis which can be used as a reference to encourage SMEs to improve their encouragement mechanism and salary system.Based on the review of related theories and literatures, the main obstacles in HY’s salary system and encouragement policy are discussed. According to the enterprise characteristics and development progress, a scheme of salary system and encouragement mechanism that suits the enterprise’s current development situation is put forward. It is suggested that the company should construct a thorough and scientific salary incentive system and keep a good balance between the material and spiritual incentives to promote its sustainable development. Meanwhile, the salary incentive measures should be designed and adjusted according to the position characteristics and change of employee requirements and expectations in order to achieve the optimal management.