Research On The Relationship Among Compensation Gap Of Intra-listed Companies,Employee Turnover Behavior And Operating Performance

The issue of compensation design of intra-companies has always been an important problem that companies and employees focus on,because the pay and pay gap will directly affect the internal employees’ motivation and emotion, which also impact on corporate performance. There are a lot of relevant empirical literature about the pay gap,But most of the existing researches only discuss the relationship of the manager pay and firm performance,the existing researches about the relationship between the compensation gap of intra-listed companies and company performance are little relatively.And the conclusions are not consistent. The existing research on the pay gap is mostly from the perspective of top management to study the performance of the enterprise, and the research on the enterprise performance is less from perspective of the employee behavior, especially the employee turnover behavior.In order to better motivate employees and develop, enterprises design in different salary in different ranks of the staff, salary gap gradually pulled. This leads to more and more attention to the problem of the pay system in the enterprise, which is not only the emphasis of the enterprise, but also the increase of the attention of the outside world. News of executive high salaries, employees turnover in order to get higher pay, these will cause the question of social on compensation design and bad influence for the future development of the enterprise.Among the factors that affect the performance of employees, compensation is the most concerned.When employees aware of that the company’s salary system design is unfair, they will choose to take a negative attitude to express their dissatisfaction, if not offset or even take action to leave.Employees’negative behavior and the possible problem of brain drain will directly influence the company’s current performance.Technical personnel and other key positions staff turnover behavior will take commercial secrets of enterprises and the core competitiveness, which hinder the further development of enterprises. There are no consistent conclusions about the effect of the academic circle on the compensation gap between enterprises, which is mainly formed by two kinds of theories:Tournament Theory and behavior theory. The two theories have been verified by different empirical research conclusions.This paper examines effects of our country enterprise internal compensation gap on the performance of enterprises, listed companies pay gap within on employee turnover behavior, and employee turnover behavior’s effect on firm performance and analysis, selects the data of A share market from listed companies which are listed in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2012 to 2014,Uses the method of combining the normative research and empirical research,expect to clarify the relationship between the internal salary gap, the employee turnover behavior and the enterprise performance of the three.This study mainly includes three purposes.Firstly, analyzing the influences that compensation gap of intra-companies on the enterprise performance.Secondly, analyzing the influences that the compensation gap of intra-companies on the employee turnover behavior.Thirdly,analyzing the influences that the employee turnover behavior on the enterprise performance.The main contents of this article are as follows:introduction.Introducing the background and significance of this study, explaining the research ideas of this paper, and defining the key concepts, and finally discussing the framework of the study.The first chapter is literature review.This part includes:the relevant literature that discuss the influence of the pay gap and the employee behavior on corporate performance,the influence of the pay gap on the employee behavior. And finally forming a knowledge of existing research.The second chapter is the theoretical analysis and research hypothesis.This chapter mainly discuss how the pay gap and employee behavior influence corporate performance,how the pay gap influence employee behavior.The third chapter is the research design. This part mainly expounds the basis and data sources of the sample selection, and explains the measurement methods of variables and the construction of the research model.The fourth chapter is the empirical analysis.This part mainly analyze the influence of the pay gap and the employee behavior on corporate performance,the influence of the pay gap on the employee behavior. The fifth chapter is the research conclusions and policy recommendations.This part outlines the results and conclusions of the empirical research.Contacting the harvest of relevant research, here gives some practical suggestions in reality, and introduces the need to improve local and future research directions.The research results show that the internal pay gap has a positive impact on the performance of the enterprise and a negative impact on employee turnover behavior. It shows that tournament theory plays a leading role in the influence of the pay gap on the enterprise, but companies should pay attention to the employees’ mood, avoiding the negative behavior and serious brain drain on the negative impact of corporate performance.The research of this paper provides the theoretical support to the salary structure of enterprises, which has practical significance.