Design On Compensation Scheme Of GK Company

Compensation is the reasonable rewards and incentives given by enterprise to employees for their hardworking and achievement, its level directly reflects employees’ importance and contribution in enterprise. Therefore compensation policy has been continuously attracting the attention of staffs and also is the important safeguard for any enterprise to bring about better, faster and sustainable development.Focusing on GK company, the paper launches empirical study on company’s current compensation system and concludes that there are internal and external pay equity issues, such as some posts’ compensation level deviates from their market value, compensation policy fails to support corporate strategy, compensation design process lack of scientificity, salary structure should be optimized. The paper specially investigates employees’ compensation satisfaction and analyzes the gained data from survey. Then the paper finds out employees’ compensation satisfaction degree is low, which embodies on the following aspects those employees think compensation levels do not reflect post value and personal contribution, there are still absolute equalitarianism phenomena in compensation distribution mechanism, compensation process is not sufficiently transparent and open, company has unequal pay for same post and work, compensation hygiene function exceeds its incentive function. Based on comprehensive empirical research and questionnaire survey, the paper dissects the causes of problems appeared in compensation system. First and main cause is the system problem that the state-owned enterprise’s own historical tradition and habits make compensation too harmonious and ignore incentives. Second cause is the mechanism problem that GK company as the subsidiary is wholly owned by superior group and company basically apply group compensation policies when set out compensation system. Last cause is that the staffs themselves also have some problems, such as overestimating their abilities and contributions, unrealistic competition etc.Based on compensation management theory, some outstanding enterprises’ right pay management practices and company’s business strategy, and according to the problems summarized from analyzing company’s compensation system and investigation, using IPE3.0 the paper ultimately schemes out the post value-based compensation system through serious job analysis and fixation of post&staff. New compensation system reflects better internal pay equity, external pay equity and post value. Finally, the paper proposes the counter security measures of implementing new compensation system in terms of organizational structure, management system and mechanism, publicity and training mechanism those three aspects.