The Optimization Of LS Company’s Compensation System

With the increasing development of China’s market economy,Chinese enterprises are gradually in line with the world,and market competition is intensifying.The competitiveness between enterprises is essentially the competition of talents,and it will certainly gain an advantage in the development of the market economy.The core of human resource management is the compensation system,and the core elements of the compensation system are determined by the salary structure.Therefore,only if the salary system is reasonable,can talents create benefits for enterprises.At present,the competition in the coal industry is very fierce.Under such huge competitive pressure,a large number of human resources shortages have occurred within coal enterprises,which has seriously affected the safe and effective production and operation of the company.The profitability and economic benefits of the enterprise are the practical concerns of employees,because this is closely related to the salary level of individual employees.Therefore,a scientific and reasonable salary system can fully mobilize the work initiative of employees,improve personnel performance,and reduce labor costs.Based on the relevant theories of the compensation system,namely fairness theory and incentive theory,this paper collects relevant information through questionnaire surveys and interview methods,and fully understands the organizational framework and personnel structure of LS Company.Then,the current salary system of LS Company was deeply analyzed and studied,and it was found that its compensation system had problems such as lack of competition in salary levels,unreasonable design of salary ranges and change ratios,excessive overlap of adjacent salary levels,single welfare model,and inability to reflect employee performance.In view of this series of problems,corresponding optimization measures are proposed,such as the establishment of competitive salary levels,the improvement of the design of salary ranges and interval change ratios,the rational design of cross-overlapping parts of adjacent salary ranges,the redesign of welfare benefits and evaluation systems,and finally to ensure the smooth implementation of these optimization measures,corresponding follow-up safeguard measures are also proposed.The ultimate purpose is to help companies solve a series of compensation-related problems faced by their business processes,and to motivate employees to work actively,and also hope to be able to enlighten and learn from the optimization of other companies’ compensation systems.Through the research of this paper,the shortcomings and deficiencies of LS Company’s compensation system are solved,and a solid compensation management foundation is laid for it,so that it cannot only achieve reform from business management,but also achieve deep-seated changes from the labor distribution mechanism,and adapt to the laws of market economy in an all-round way.The innovation of this paper is that LS Company,for example,is a typical representative of private coal companies.According to the current situation of the company’s salary system,the current salary system is optimized and designed from multiple different angles,and a scientific and effective and diversified salary system is proposed under the condition of compliance and legality,which fully reflects the company’s emphasis on the cultivation and assessment of talents,and plays a role in motivating the subjective initiative of employees,improving the enthusiasm of employees,and enhancing the company’s market competitiveness.