Research On Employee Incentive System Of Z Company

Modern enterprise incentive system is the core of human resource management.Its main purpose is to improve the efficiency of the staff of employees and mobilize their initiative and enthusiasm.Z Company is a leading company in its industry.However,faced with an environment involving increasingly fierce competition currently,Z Company has to adjust its incentive system.The purpose of this study is to find out problems in its current incentive system through survey and put forward suggestions to improve by applying related motivation theories.First of all,it investigates the operation of Z Company's current incentive system from three aspects: material,spiritual and development motivation.There are various forms of material incentives with unique and innovative features,for instance,core contract reward system for special employees,key personnel housing system,insurance funds system and spiritual incentive system centering on employee care.Secondly,it analyzes problems in Z Company's staff motivation and finds out what as follows: the existing salary structure is unreasonable because there is a big gap between the salary level and material incentive;the policies of basic pay and merit pay are not well targeted and lack flexibility;the rank of performance is too narrow;as for spiritual motivation,there are so many cultural activities that employees are reluctant to join or poorly organize them;with regard to motivating development,the localization of managers is very slow and there is no constraint on job rotation.Finally,based on investigating reasons for the problems,it proposes the following suggestions on optimizing Z Company's incentive system: to adopt a flexible compensation strategy to improve both material and spiritual incentives and set up a performance-based compensation system to optimize compensation structure and appropriately raise pay levels;to show more concerns about employees and promote cultural activities mainly focusing on expanding performance appraisal and reward and punishment;to increase recruitment of local employees,flat the career path for technical and basic-level employees and establish a job rotation system to strengthen the effectiveness of motivation.