Research On Incentive Compensation System Design Of Smalland Medium-sized Private Enterprises Based On Grounded Theory

At present,China's position in the world economic system has been significantly improved,and private enterprises are facing a new competitive pattern.How to construct the incentive pay system to attract talents,retain staff,find its position in the fierce market competition,realize enterprise change and sustainable development,is of great importance for private enterprises,especially for small and medium-sized private enterprises.In this paper,we have found that the research on incentive compensation system of small and medium-sized private enterprises is not enough,and there still has room for expansion in their theories.In order to make a better research,this paper first conduct a systematic analysis on the pay system problems and reasons of small and medium-sized private enterprises,the results show that the integration of the main structure is the root cause of the instability and arbitrariness of the salary management system of small and medium-sized private enterprises.Then,based on the research method of grounded theory,this paper expands the connotation of incentive compensation system based on interviews with employees of several small private enterprises,construct the theoretical model of comprehensive incentive compensation system including mechanism,incentive principle,operation mechanism and regulation mechanism,the innovation of this model extends the incentive compensation system from a few incentive principles to a series of institutional arrangements from the design of the compensation system to the implementation and adjustment.Finally,this paper puts forward somesuggestions for the construction of incentive compensation system for small and medium-sized private enterprises from four aspects.