The Study On The Compensation Regulation Policy For The State-Owned Enterprises

The government and the public has payed close attention on the income of the state-owned enterprises, especially the income of the senior executives of it. Although the current compensation regulation policies including "Interim Measures for the administration of the total wages of central enterprises "have great effect on narrowing down the gap of income between state-owned enterprises and non state-owned enterprises, it still causes discussions in the academic and society. Among the discussions, there is whether the formulation of compensation regulation policies accord with law, whether SASAC or Ministry of Finance and other departments has the authority to regulate the enterprise compensation. First of all, it is whether the SASAC has the ability to act as a representative of the company’s capital contributors. Currently, commercial competition is fierce and high-speed running, the SASAC, which is still an administrative agency, does not have the professional skills and capability to deal with the problems occurred in the state-owned enterprise transaction management and capital management. Furthermore, the rules may be constraints to the development of enterprises. Second of all, State-Owned Assets Law does not give the SASAC the power of the regulations of the state owned assets, therefore legality of the current compensation control policy is questionable. And the characteristic of state-owned enterprises, such as wide range, the difference and the timeliness, results in that the guiding policy of the state owned assets made by the SASAC has some deviation from the actual, limited scope of application, poor timeliness and so on.Although the main object of compensation regulation policies are executives in state-owned enterprises, there are direct or indirect influence on employees. Because of the salary restraint, lack of Compensation incentive, the competition based on compulsory binding on the total payroll from the Interim Measures, the unfair position, and the power to develop their own compensation mechanism, the management has an overwhelming advantage in the competition with employee. Taking JS Mobile for example, it has been in absolute advantage in the competition by changing the incentives, intensified competition between grassroots departments and personnel, but also creates a competitive environment for the staff, makes normalization to keep high work efficiency, guarantee enterprise benefit, and does not increase the extra incentive cost. Secondly, as the budget is simple, precise, overtime, etc. uncontrollable wage costs directly cut, instructions to deal with imprecise pay cuts, adopt the mode of equal wages instead of the proportion of wages, reduce management layers is cut the cheese; contraction at the grassroots level staff career rising channel, position on behalf of the employees labor remuneration of the post and on behalf of the employees actual work content inconsistent, the primary occupation development blocked. In addition, the management set up obstacles in the last mile of the dispatch staff becoming full members, including cuts, reduce the bracket. Although the dispatch staff obtained the identity, it still has a long way to achieve equal pay for equal work. The base employee income level is inconsistent with the industry revenue growth, social average income growth level. They increasingly decline on job satisfaction, resulting in state-owned enterprise employees flow to private sector. At the same time, college graduates employment preference also change, the talent attraction and long-term shelter ability of state-owned enterprises decline, the state-owned enterprises in new business development strategy which need to participate in the full market competition overcautious, lack of ability, competitive weakness. The State-owned enterprises in the less developed areas attracted many highly educated people. They play a great role in the less developed areas in the development. Decline in state-owned enterprises to attract talent also makes the less developed areas jointly affected. The talent who have already chosen the less developed area to escape survival pressures such as high housing prices in the first tier cities have to rethink their career prospects in the less developed area.This paper analyzes the positive and negative effect of the compensation regulation policies, put forward some suggestions on improving policies and policy implementation path. The first, based on the "guiding opinions on state-owned enterprises function definition and classification", the classification of state-owned enterprises needs to start. For commercial state-owned enterprises, it should be as soon as possible to increase the intensity of the relaxation of pay control, so that enterprises can fully invested in the market environment, in accordance with the laws of the market operation. For public welfare state-owned enterprises, the government regulation and control of product price is still essential, but the production process should also actively introduce market mechanisms to improve the efficiency and capacity of public services. The second, the operation of the policy need the enterprise’s own mechanism to cooperate, but the enterprises are not ready for this. So it still need the policy makers or other regulatory bodies to strengthen the guidance an specifications. The main body of policy formulation should include all aspects of interest groups, in order to ensure the direct or indirect effect of the policy to be fair and just. Communicate the policy path should be varied as much as possible to prevent the government to pay for the policy implementation change. Finally, the government should broaden the channels of policy evaluation, maintain a sustained policy evaluation, make sure that the voices of all the interest groups can be heard. When policy is no longer in accordance with the environment, it should be modified or abolished for the first time, to ensure the timeliness of the policy.