The Total Compensation System Design Of Software And Information Service Industry In Shanxi Province

In recent years, with rapidly developing, software and information service industry has become the leading, strategic and pillar industries of China’s national economic and social development. According to 13 th Five-Year Plan, which was established in the Fifth Plenum of the 18 th Central Committee of the Communist Party of China, China’s software and information services industry have to achieve further leaps and bounds. As the country’s energy and heavy chemical industry base, Shanxi province relies on high consumption and heavy pollution industries such as coal and coke to promote its economic development in long-terms. Due to its excessive single industrial structure, Shanxi province’s economic situation is facing a severe situation and is urgent to restructure the industrial structure. In the background of 13 th Five-Year Plan and industrial restructuring, Shanxi province need to focus on the development of software and information services industry in order to make the economic centre gradually shifted to emerging industries and achieve a comprehensive restructuring of the socio-economic development. For software and information services industry, employees are the crucial and decisive resource for its development. Therefore, how to effectively motivate employees and on the base of sufficient analyzing their actual demand to develop a scientific and reasonable compensation system has become a primary concern of the enterprise managers. However, not only the current compensation system of Shanxi software and information services industry is lagging behind, but also there exists enormous differences between Shanxi province and other provinces in their employees’ needs and the type of remuneration elements. Therefore, it has outstanding practical significance to research the Shanxi province software and information service industry’s employees expect elements and establish a compensation system based on the needs of them.After elaborate the theories about employee motivation and compensation, this paper first analyze the main problems of software and information service industry’s existing compensation system in Shanxi province. Second, research the degree of excitation and the empirical of compensation elements of Shanxi software and information services industry employee based on survey data and by use of the descriptive analysis and correlation analysis. Third, introduce the concept of total compensation system and build Shanxi province software and information services industry employee comprehensive total compensation system from the employee’s basic salary, variable remuneration, employee benefits and flexible remuneration. Finally, make suggestion on the implementation and adjustment of Shanxi software and information services industry employee total compensation system in order to provide a reference for the employee compensation system reform.Based on analysis of the existing remuneration system in Shanxi province software and information services industry and questionnaires about the degree of compensation incentive in Shanxi software and information services industry employees, this paper draw the following conclusions: First, it is necessary to reform the current employee compensation system of Shanxi software and information service industry; Second, the highest demands elements of Shanxi software and information services industry employee are basic wages, benefits and promotion opportunities for development; Third, basic wage, psychological income, profit sharing plans and earnings or equity incentive plans are the four most relevant elements to the overall degree of compensation incentive; Fourth, Shanxi software and information services industry should build employee total compensation system.The innovation of this article may lies: First, it is the first to introduce the total compensation system into employee compensation management of Shanxi software and information services industry; Second, build a total compensation system based on the demand of Shanxi software and information services industry employees; Finally, make suggestion on preceding implementation, adjustments and after implementation of the total compensation system. However, due to the lack of current theory and practice cases in total compensation system, this paper lacks the research about applicable conditions and legal issues of the total compensation system.