Compensation System Optimization Design Of A Company

In the era of global economic integration,international competition is becoming increasingly fierce. More and more enterprises realize that the core of inter-company competition has been transformed from capital and technology into talent competition. It has been an important subject of business management which is to establish a management mechanism that can attract talents, retain staff and motivate them. As a core module of human resource management, compensation management is one of the most important work in the management level of organization.A Company is a state-owned large bearing enterprises, which was founded in the early days after the foundation of the PR China. After 60 years of construction, it has developed into an integrated bearing manufacturer with the largest production scale and the most complete product types in China's bearing industry. However, A Company practiced post wage as basic wage system, so that compensation distribution form was monotonous, and the difference in post wage is small. Especially, the post rating for production workers still followed the post evaluation results many years ago. Simple salary system was much less competitive in external market, and unfair within the enterprise. The lack of incentive caused loss of employees' value and disoriented performance improvement. Post salary regulation did not play a key role in human resources management and an important starting point for the strategic role of corporate strategy, which was not adapted to enterprise development.According to modern compensation management theory and pay system design methods, we start with A company's human resources situation and salary management, and survey comprehensively to A Company's original salary system, finds some problems existing in the system and analyze reason to them. On this basis,according to objectives, principles and pay system design steps, considering A company's actual situation and staff's recommendations in salary survey, we optimize design of the new pay system. we start with A company's human resources situation and salary management, and survey current salary status. Problems were found in existing salary system aspects by satisfaction surveys and pay interviews. We analyze causes. Main steps of our optimization program are as follows: all the positions are divided into three grades-operational sequence, management sequence, the annual salary sequence. Then we establish salary system based on efficiency pay regulation. To determine the relative rank of different positions through job analysis and job evaluation. According to compensation management theory and the core technology of broadband compensation design, pay levels are classified appropriately. Pay levels were determined by the remuneration strategy adopted by A Company and referred to external salary level, which finally formed a salary system based on post benefit wage system.This study take A Company as research subject, which is a state-owned enterprise in perfect competition. Broadband compensation theory was introduced in this study to design post-and-efficiency salary by differentiating job types. Problems were found in existing salary system on quantitative and qualitative aspects by pay surveys.Efficiency pay level is set as relative variable and in pace with enterprise efficiency. These above are the characteristics of this study. This research provides a direction for the next step of the competitive mechanism reform of state-owned enterprises, which can be used as a reference for the mechanical processing enterprises to solve similar problems.