The new driving force of enterprise development

In today's labor market, employees will pay more attention to their labor rights and interests of the maintenance of their own career planning and design will slowly have more and more clear understanding of the wage is no longer the employees are willing to stay in the enterprise for a long period of time to concentrate on the work of the only factor. Below I have organized for you about the new power of enterprise development, I hope to provide you with help:

The new economic situation faced by enterprises

From the perspective of salary, Chinese enterprises are facing a serious test of development. Dr. Zhu Fei pointed out that, at present, many enterprises are facing the "internal and external" economic situation. The so-called "external problems", there are two main: First, China is a manufacturing country, product exports, the U.S. subprime crisis has seriously affected China's product exports; Second, in recent years, Chinese products in the international image of the challenges faced by the issue of the international question of China's food safety, the quality of China's toys, etc., the questioning of China's products, international demand has caused a greater impact. International demand for Chinese products has caused a greater impact. The so-called "internal worries", mainly refers to, inflation, CPI index soared, the cost of living of employees to increase the demand for salary increases increasingly strong, while the main production of raw materials, such as steel and other price increases, these factors cause part of the enterprise's production costs have increased significantly; at the same time, the adjustment of the national export tax rebate policy makes the Many enterprises' profit margins have fallen sharply. All these factors make enterprises in the payroll management must face more serious challenges. Enterprises have to pay more attention to salary, effective management of salary and the realization of the salary function has become one of the key factors for enterprises to establish a foothold in the market.

Three Core Components of a New Compensation Strategy

Dr. Fei Zhu pointed out that the traditional scope of compensation includes: salary (wages, bonuses) + benefits (social security, training, paid leave, etc.), while today's scope of compensation has evolved into the concept of total compensation (total remuneration). According to a 2006 study by the American Compensation Association, overall compensation should include five aspects: first, basic pay and variable pay; second, benefits; third, performance and recognition; fourth, work-life balance; and fifth, personal development and career opportunities, including learning opportunities, guidance from senior experts and mentors, and personal development opportunities in three factors.

After the introduction of the Labor Contract Law, how is corporate compensation designed? What is the basis? Dr. Zhu Fei believes that abiding by the provisions of the Labor Contract Law and ensuring that employees receive legitimate and normal income is the basic principle for enterprises to develop compensation strategies. Enterprises seeking development, the first thing is to be responsible for the staff, so that you can be responsible for the customers, responsible for the future of the enterprise. Now the staff's legal awareness is getting stronger and stronger, if the enterprise to take against the law way of management staff, the staff is bound to "centrifugal separation", which is also very unfavorable to the long-term development of the enterprise. Therefore, the development of enterprise pay strategy can refer to the following three points.

First, the introduction of the concept of "total compensation" in the enterprise compensation system. In the publicity of the enterprise pay mechanism, not only and employees will pay him (her) how much cash, but also talk about other aspects, such as employees' personal development and career opportunities, the establishment of the performance recognition program within the enterprise, the enterprise to balance the conflict between work and life of the employees of all kinds of measures, etc. These measures include flexible working hours, the enterprise to establish a flexible work schedule, the enterprise to balance the conflict between work and life. These measures include flexible working hours developed by the enterprise, the improvement of the working environment, the enterprise's attention to the health of the employees, the attention to the employee support object, etc. These initiatives have a strong incentive effect, which can make the employees have a sense of belonging to the enterprise and dependence on the sense of improving the loyalty and motivation to work.

Second, to establish the employer brand image of the enterprise. Employer branding can play two key roles. First, it improves the attractiveness of the enterprise in the talent market and increases the chances of attracting excellent and suitable talents. Second, it creates a high level of brand loyalty among employees within the organization, motivating and retaining them. Dr. Zhu Fei cited an example, for example, the famous international strategy consulting firm McKinsey & Company advocates the employment value of "elite employment", they claimed that the people working with the employees are the elite in the workplace, the employees are in contact with high-end customers, the employees receive training are the industry's most top-notch training courses, all of which have a very strong influence on the future enhancement of the employees. All of this is a powerful incentive for future advancement, so this employer culture is extremely attractive to job seekers and incumbents who aspire to this atmosphere.

Again, the introduction of informal organizations. There are pros and cons to the existence of informal organizations in business. The downside is that it's easy to spread gossip within a small group, and it even encourages the occurrence of collective job-hopping. However, if the enterprise can guide it well, the informal organization can increase the employees' dependence on the enterprise. Dr. Zhu Fei pointed out that from the current situation, employees' organizational loyalty is decreasing, but professional loyalty and team loyalty are increasing. When an employee jumps to a new job, he/she will consider whether there is still such a harmonious team in his/her new environment, and this is the psychological cost that the employee will consider when he/she jumps to a new job. For example, employees like to climb mountains, then the enterprise can pay some fees to establish a mountaineering team, often organize employees to participate. After a long time, the employees have feelings for the team, they will be grateful to the enterprise psychology and higher recognition.

The two main bases for an employee's salary increase

Should an employee's salary be adjusted in a timely manner when prices rise? If a company decides to adjust employee wages as a result, what implementation procedures should be in place? Which part of the employee's salary is adjusted?

Dr. Zhu Fei said that enterprises should establish a normal mechanism for employee salary adjustment. In the current economic situation, this mechanism seems more urgent. An employee, last year's monthly salary of 1000 yuan, this year's monthly salary of 1100 yuan, although the nominal wage rate is rising, but the actual wage rate is declining, this year's 1100 yuan is not as high as last year's purchasing power of 1000 yuan.

So, how should companies raise wages? What is the basis? Dr. Zhu Fei pointed out that enterprises should establish a mature pay rise mechanism. There are two main bases for adjustment: one is to look at the CPI index, and the other is to look at the economic performance of enterprises. Although China's current CPI index has a lot of flaws, society still lacks a better economic index that can reflect the cost of living of employees as a reference for salary adjustment, so let's take the CPI index as the main basis. From another perspective, it cannot be said that all enterprises must give their employees a pay rise when the CPI rises, but also according to the efficiency of the enterprise. Different enterprises have different methods of linking economic benefits, some of which are linked to the operating income of the enterprise, and some of which are linked to the operating profit of the enterprise. Obviously, in the current economic situation of rising production costs, the operating profit margin indicator should be the main basis for measuring the specific pay rise or not and the proportion of salary adjustment.

Personal Compensation and Benefits in China's Water Industry

Respondents filled in the information shows that a large proportion of water enterprise employees have social insurance, housing provident fund and other basic benefits, are more than 80% of the respondents enjoying the benefits of social insurance, a proportion of respondents up to 92%. more than 50% of the respondents to enjoy meal allowances and More than 50% of the respondents enjoy meal allowance and festival expenses, and nearly half of the respondents enjoy paid annual leave and communication subsidies. More than 30% of the respondents enjoy transportation subsidies and gifts in kind; more than 20% of the respondents enjoy housing subsidies and attendance incentives; nearly 20% of the respondents have supplementary commercial insurance and other subsidies; and 8.6% of the respondents enjoy travel subsidies.

Chinese Water Industry Compensation and Benefits Status, Issues

China's water industry is a very critical jump from Level 2 to Level 3. Promoting from Level 2 to Level 3 will result in a very significant increase in compensation and benefits, which means that water companies will be willing to pay a higher, competitive level of wages to recruit This also means that water utilities are willing to pay higher competitive wages to recruit and retain staff above Level 3, and the cost of labor for the utility increases as a result.

China's water industry is in a period of rapid development and consolidation, and structural supply and demand conflicts are inevitable. On the one hand, the enterprise needs to have a high technical ability or a skill of professional talents, as well as a high level of management personnel; on the other hand, the supply of high-level talent in the industry as a whole will not be a large-scale growth rate in the short term. The contradiction between the fast-growing demand for labor and the lagging supply of talent in the short term is more prominent.

As the supply of talent is not in place, the enterprise may be in order to fast-growing business and high-paying poachers, this phenomenon in the water industry is not a lack of cases. In addition, enterprises provide `high salary is often far higher than the actual ability to pay, this situation to a certain extent, exacerbate the cost pressure of enterprises. The contradiction between the supply and demand of talents, the rationality of salaries, and the cost of enterprises is more prominent in the talent management of China's water industry.

The development trend of compensation and benefits in China's water industry

With the competition, the increase of high-level talents, and the clarification of the industry's salary information, the structure of supply and demand of talents in the water industry will tend to rationalize, and the ability of the talents, the salary, and the cost of the enterprise will tend to rationalize.

Hot jobs will follow the development of the water market. Recycled water field, Beijing, Shanghai and other sizeable cities are expected to enhance the demand for talent; sludge field, Guangdong, Jiangsu, Liaoning and other provinces are expected to become a concentration of talent in recent years, and industrial wastewater treatment leading Henan, Hubei, Shandong, Hebei and other provinces will also be the concentration of talent demand. To sewage plant director positions, for example, such as the need to complete the sewage treatment plan, the next few years, China needs to build nearly 40,000 sewage treatment plants, which means that there is a demand for about 40,000 sewage plant director positions.

Third-party forces are expected to promote the establishment of a reasonable salary system. China's water network and E20 environmental industry club members **** with the launch of the establishment of "China's environmental industry human resources alliance"; 20xx China's water network relying on the advantages of the platform, plans to launch and build China's water industry salary database.

General principles of salary calculation

First, the relationship between compensation and remuneration:

① Compared with the intrinsic compensation, employees and enterprises tend to focus on extrinsic compensation, especially salary

② employees complain about the salary is not necessarily due to salary

③ the intrinsic compensation, employees and enterprises tend to focus on extrinsic compensation, especially salary

② employees complain about salary

③ there is no necessary link between intrinsic compensation and the reduction of the cost of compensation in the enterprise

Second, the composition of the total compensation (basic compensation Variable compensation Indirect compensation or benefits and services)

Basic compensation:

① refers to the amount of money an organization spends on the basis of the work itself that the employee is required to undertake or complete or the skills or ability to complete the work that the employee possesses.

① is an organization based on the work itself or the employee's skills or ability to complete the work and pay the employee a relatively stable economic compensation, provides employees with basic livelihood security and a stable source of income, is a major basis for determining the variable compensation

② change based on:

A. Changes in the overall cost of living or the degree of inflation;

B. The basic pay of the market for the same labor;

C. The basic pay of the market;

B. The basic pay of the same labor;

C. The basic pay of the market;

C. Changes in the knowledge, experience, and skills possessed by the employee himself or herself and the resulting changes in performance

③ Performance increases are a form of basic pay increase used to recognize an employee's past satisfactory work behavior as well as his or her performance

2. Variable pay:

① It is the economic type of compensation in the pay system that is directly related to performance, and it is also sometimes referred to as Variable pay or bonus

② Purpose: to establish a direct link between performance and pay

③ Short-term and long-term variable pay: short-term is generally based on very specific performance objectives, the long-term purpose is to encourage employees to work hard to achieve the performance objectives of the inter-annual or multi-year

3. Indirect pay or benefits and services:

① Generally includes non-working time payments, and the benefits and services of the employee. ① Generally include non-working time payment, services provided to individual employees and their families, health and medical care, life insurance, and statutory and corporate supplemental pensions, etc.

② Special value:

A. Reduced remuneration paid in cash, the company can reasonably avoid taxes;

B. Benefits for the future of the employee's retirement life and some accidental

C. Benefits are also a means of adjusting the purchasing power of employees, which enables them to buy the products they need at a lower cost.

4. Difference between performance pay increase and variable pay:

① Performance pay increase is a kind of reward for the past performance and excellent performance of the employee, based on the employee's basic salary, the percentage of which depends on the company's business performance of the year as well as the employee's personal performance evaluation grade, so it is not necessary or possible to negotiate or communicate with the employee in advance; Variable pay or bonuses are used to influence the employee's future behavior. future behavior. For the purpose of behavior or performance, so how much bonus, the rate of gain sharing and the date of the equity grant are agreed upon in advance

② performance raises, once determined, will be permanently added to the basic pay above the second year in the first year on the basis of continued raises, resulting in a cumulative effect; variable pay applies only to the employee and the enterprise agreed to a certain performance cycle

< strong> Third, the main elements of compensation management

1. Definition: is an organization for all employees to determine the services provided by the total amount of pay they should get, the pay structure and pay form of the process

2. Three major goals:

① fairness (employees for the management system and the process of fairness, fairness, perception or perception)

2. The three main objectives:

① Fairness (employees' opinion or perception of the fairness and impartiality of the management system and process)

② Effectiveness (the extent to which the remuneration management system can help the organization to achieve the predetermined business objectives)

③ Legitimacy (whether or not the enterprise's remuneration management system and process comply with the relevant national laws and regulations)

3. Fairness or internal consistency of remuneration

③ Fairness of pay for performance

④ Fairness of the remuneration management process

Fourth, a number of important decisions on remuneration management

Decision-making on the remuneration system:

① The main task: to clarify the basis on which the company determines the basic remuneration of employees

② Three types of generic remuneration

The main task: to define the basis on which the company determines the basic remuneration of employees

The main task: to define the basic remuneration of employees

② three general pay system:

A. Position pay system (based on the work and position, based on the employee's own value of the work, the most widely used)

B. Skill pay system, ability pay system (based on human qualities, respectively, based on the level of the employee's own skills and the employee has the ability to competency or comprehensive qualifications)

2. p> 2. pay level decision:

① pay level refers to the average pay level of each position in the enterprise, each department and the enterprise as a whole, which determines the external competitiveness of the enterprise's pay

② influencing factors: the level of pay of competitors in the same industry or region, the enterprise's ability to pay and pay strategy, the social cost of living index, in the case of collective bargaining, trade union pay policy Pay structure decision:

①Pay structure refers to how many basic pay grades there are in the same organization and the difference in pay levels between two adjacent pay grades

②Pay structure has a significant impact on employee turnover and motivation

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