J Telecom Engineering Company's Salary Scale Setting Optimization Research

Under the situation of increasingly fierce competition and pluralistic social values of employees, the enterprise compensation management is now facing more severe challenges. The enterprise need to attract, retain and motivate people by the effective compensation system. So that they can create value, promote the development, and implement the enterprise's strategic management goal.As a typical old state-owned enterprise, J Telecom Engineering Company ('Company J' for short), is the leading enterprise in domestic communication engineering services. The Company is committed to the national information construction for a long time, and its business scope covers all the areas of the communication and information engineering services. However, along with the continuous expansion of the business, some problems present gradually, which are decreased staff's motivation, the enterprise brain drain, and reducing cohesive force. We studied the existing problems in Company J and found that the basic reason is the irrational compensation position setting. The current compensation management of Company J is based on the posts of the employees. The salary level totally depends on the posts. Obviously it cannot meet the needs of the morden enterprise compensation management. The enterprise cannot stand out in the fierce market competition. Company J must optimize the salary compensation position setting in the compensation system.This article introduces the development course and human resource management status of Company J and analyzes the existing problem and reasons of the compensation position setting system according to the employee interviews and employee satisfaction survey. The existing problems of compensation position setting are summarised as below:1) too complicated position setting,2) lack of diversity in the same compensation position,3) lack of a clear promotion blueprint,4) simple assess in compensation position setting,5) lack of transparency in the promotion. The reasons for above-mentioned problems are the position compensation system originated under the planned economy, poor foundation work, faint compensation management consciousness, low level of HR capacity, and unclear job description, Thirdly, based on mentioned above, this article proposes that we might optimize the salary compensation position setting based on thoughts of Broadband salary system. The optimization procedure includes job analysis and classification, job evaluation by applying the method of Heidegger's assessment, layer division of the positions, and generation of broadband salary post hierarchy. In the process of implementation, the management must lead the staff to reach a consensus, perfect the groundwork of compensation management, establish performance appraisal system appropriate to the broadband salary post, and strengthen the dynamic control of the total amount of compensation.