A Small And Medium-sized Private Enterprises Compensation System Optimization Design

In modern society,the core of competition is the talent,so how to attract them,motivate them,and retain them is becoming the most important part of the corporation management.But for most small and medium-sized enterprises in our country,the management still uses the traditional way,pay less attention to the wage,which leads to a lot of enterprises lack of talent and comprehensive competitiveness.Therefore,how to establish a set of reasonable and scientific compensation system,is turning into the priority of developing small and medium-sized private enterprises.Compensation system is a "double-edged sword" for the enterprise,used properly can attract,retain and motivate talented people,but improper use may be brought to enterprise crisis.Company A as the research object,this paper takes questionnaire,interview,and investigation thoroughly analyses the problems existing in the enterprise salary system and the reasons behind the problems,then demonstrates the necessity of the implementation of the compensation reform based on the basic theory of the compensation,and the compensation system design.This article through the research of "the optimization design of salary system in company A”,not only can improve the compensation model of A,guiding to the scientific and standardization of its salary system,but also provides effective method for other small and medium-sized private enterprises to establish a reasonable salary system.