I have always believed that management change in enterprises, no matter how diverse the methods or forms, ultimately only from two perspectives: one is based on the perspective of enterprise efficiency of the organizational changes; the other is based on the distribution of benefits perspective to carry out the management reform. Apart from these two, there is nothing else that can serve as a strong impetus for enterprise management change. I believe that this summary for a certain work experience in HR or management to appreciate.
The enterprise's compensation system is the most intuitive distribution of benefits embodied in the enterprise, so in the enterprise involved in the change of the compensation system, are highly sensitive and very important changes. So how do you design a compensation system? Next, I use a simple and easy to understand method combined with practical cases to illustrate.
(Note: Past articles, I have been using A company for example, but this time I changed to use a beauty chain business owner for example, according to the practice of protecting the company's privacy, I use B company pronounced. I have mentioned the time point in my example, are my time point in the job at that time.)
First, to determine the general objectives of the payroll design
For enterprises, the payroll system is absolutely not to change it for no reason, I have said before that any management measures are to serve the enterprise to achieve certain goals, payroll system is the same. Different enterprises, in different stages of development, as well as the situation it faces to different. Then its payroll design goals are different, so the payroll system is definitely not a solid and unchanging thing, but should be effectively adjusted according to the development of the enterprise, in order to achieve the ultimate goal of the enterprise.
Some companies want to carry out salary design because of the enterprise's past salary system design is not scientific, resulting in the existing personnel feel unfair, employees feel that they pay and get unequal, then the goal of the salary system design is to balance the distribution of employee benefits, to achieve the stability of the team's hearts. And some companies are because of poor business performance, the lack of motivation of employees, drought, flood insurance income, a pool of stagnant water, then the goal of the development of the pay system is: through the pay of this lever to pry the enthusiasm of the staff, resulting in the value of the drive to work more.
Case Note 1:
Company B is a high-quality hair salon chain, hair training and education, brand franchising business. There are more than a dozen directly-managed chain stores, a training company, dozens of franchised stores, hosting nearly a dozen stores. The company's human resources are divided into two main structures, directly managed stores are based on hairdressing technicians and sales staff, their salary structure is basically a base salary plus commission, simple and intuitive. The company's office staff is more miscellaneous, there are sales staff, customer service personnel, investment personnel, education and training lecturers, product personnel, logistics functions and other positions, salary structure has a fixed salary, basic salary plus performance, there is also a basic salary plus commission.
The problem the company has encountered in recent years is that it is very difficult to recruit technician assistants for directly-managed stores, and it is very difficult to recruit salespeople for offices. The company HR after investigation to understand that the main reason is that these years the labor force is more and more lack of, coupled with more and more after 90 are not willing to do the hard work, the store's technician assistant basic salary is too low. But in fact, in general, a good technician monthly salary of more than ten thousand quite a lot, 2500 yuan basic salary only accounted for a small part of the overall income. But this salary structure in a few years ago or line, today many people like 90 years is to look at the basic salary, not too look at the commission.
The company's headquarters office of the business sector sales staff rely on the commission before, but because of the development of new customers slowly shrinking, customer service staff through the after-sales service in turn led to a lot of customer referrals. The sales staff in front and then desperately open up even worse than the customer service staff of the customer introduction. So the sales staff can't sell the course, not much commission, and have asked to turn to customer service work.
After a comprehensive and in-depth analysis, locked the current main problem: pay system to redesign. The goal is to make a salary system with the times, to be able to solve the current problem of the distribution of employee benefits, to enhance employee motivation, incentives for employees to create value, reduce the difficulty of staff recruitment and other objectives.
Second, job analysis and salary research
Job analysis is not only used in recruitment, performance, but also can be used for salary system design. In the salary system design process, job analysis is for salary research services. It focuses on analyzing and evaluating the workload, work value, and market scarcity of the position. About job analysis I have written in the previously published article, here will not be a detailed development of how to do job analysis.
Salary research should be carried out from both internal and external aspects of the enterprise. Internal is the existing staff pay status research, understand the structure of the staff pay, whether the standard incentive, but also combined with the company's labor costs and profitability of a comprehensive assessment; external research is to understand the peer with the type of positions in the pay standard, pay structure. Specific methods: internal research can be used with employee questionnaires, combined with financial data; external investigation can be used to recruit website data, as well as peer inquiries and other ways.
Case Note 2:
Company B to do salary research, I listened to some of the better minded employees feedback on the one hand, did some employee questionnaires to understand; on the other hand, from the financial data to understand. First of all, compare the differences in wages of employees in similar positions, and found that in addition to sales positions, other clerical positions in similar positions are very close to the wage, the difference is very small. The advantage is relatively fair, but the disadvantage is a pool of dead water, not much vigor. Commissioner of the Department of Operations and the Commissioner of the Department of Personnel work wages are about the same, the assistant of the Department of Products and Personnel Commissioner is also about the same, although the respective work in different areas, there is no comparability, but they are low-tech, high substitutability.
The salary of sales positions like investment promotion personnel, Ministry of Education course sales, and direct store hairdressers, technicians and other positions, the salary is very different, from the salary structure, base salary standards vary, commission standards are also due to different stores are different. The good thing is flexible, but the bad thing is unfair, and seriously unscientific. Many people ask to be transferred to a store with a high commission. So the store's talent turbulence, the worse the store the worse. The same is true of the headquarters office, investment development is not going well, many investment commissioners asked to transfer to sell courses and other phenomena. The previously mentioned customer service staff sitting in the office than outside the run of the sales staff to earn a high income, the actual performance is also better.
After peer to peer understanding of other enterprises of the same type of salary structure and standards, all kinds of. I think one of the X company's pay system is very reasonable, and the company's development stage than we are now the development stage of the B company to some of the former, basically realize the direct store equity fully decentralized, the total amount of employee shareholding higher than the company, but the company's control is still very strong. Headquarters has also implemented a similar amoeba model, the business center tends to independent accounting, self-financing. However, I assess the current stage, B company has not reached the conditions for the implementation of such a level, so step by step, first of all, from the company's objectives and the annual salary of employees linked to the beginning.
Third, according to the company's objectives to set the post of the total annual income base
The benefits of the enterprise with the staff income link, is not an empty word. I have been really practicing this basic belief. Human resources planning should take into full account the annual objectives of the enterprise and human resources cost factors. When formulating the annual personnel demand plan, it must be combined with the annual goals and labor costs of input and output value assessment to carry out scientific design. In general, the company's annual target program, then the main positions should also be based on annual income to plan the compensation system.
Case Note 3:
Company B XX total annual sales target of 1.XX billion, of which 9XXX million directly-managed stores, franchising 5XXX million, hosting XXX million, education and training XXX million, hair care products business (direct sales, not counting sales through other means) XXX million, the annual profit target of XXX million, the total cost of manpower to control the XXX million. Control in XXX million.
Directly managed stores annual salary planning:? Directly managed stores according to the performance of each store, the commission of the total amount of X% of the store manager and the main management personnel of the annual income, of which the store manager's annual income of XX million, the main management personnel of the annual income of XX million, of course, the total income will be directly linked with the performance of the store. Calculated, if the directly-managed stores to complete the total annual target, then the store manager income of about 25 to 500,000 between, the key management personnel annual income of 150,000 to 300,000 between.
The company's business units in charge of the annual salary planning:? The income of the main person in charge of each business unit is linked to the annual objectives of the business unit, different departments have different objectives, but the total annual income of the direct business operations director to oversee the outside, others are 350,000 yuan, exceeding the target after the award. Some people may find it strange, here why set into a fixed amount, and not calculated according to the sales of the divisions? Because the company in addition to the direct store business and franchise business is a little more mature, the other business are in the early stages of development, still in the loss-making state, can not be calculated according to performance, the company must use the mature business to feed the new business areas, but the total base of 350,000 is linked to the target, if the target is not accomplished, it will not be able to get 350,000, can only be calculated based on the actual rate of completion.
Through a series of assessments and calculations, the head of each division, as well as key management personnel, as well as the head of each directly-managed stores, the total annual income of the main management personnel to determine, and made into a military order, signed in black and white, on the one hand, is to enhance the confidence of the staff, guarding the commitment. On the other hand, it is also the Ministry of Human Resources as a basis for future mediation of salary disputes.
Fourth, set up a reasonable salary structure
The design of the salary structure is not simply to split the salary, but to be reasonably oriented to the company's goals or values, the salary structure can be broadly divided into three broad categories:
1. Basic salary category
Such as basic salary, job salary. The so-called guaranteed salary for sales staff belongs to this category. Characterized by this type of wage is to protect the most basic needs of employees, but this demand is not based on the employee's own personal situation, but to consider the social costs and the actual situation of the company set, it can not be lower than the local minimum wage guarantee. From the company's point of view, the basic wage is relatively easy to budget and is also relatively controllable. Its shortcoming is that it is relatively rigid and cannot reflect the principle of value distribution. Setting too high a proportion of base salary will cause the team to be unmotivated and have no fighting spirit. However, the proportion of base salary set too low will cause recruitment difficulties, retention difficulties.
2. performance-based wages
such as performance bonuses, sales commission, year-end awards, company bonuses and others. It is characterized by the employee for the enterprise to contribute to the relative value, according to the commitment to give the return. It is amorphous, and the only criterion is the fulfillment of a predetermined goal. Performance-based pay is characterized by a very unstable, for the enterprise its expenditure can not be viewed as a cost, because it pays and the enterprise's profit is proportional to the employees, reflecting the principle of distribution of the value of the more you work, the more you get. Scientific and reasonable performance system can promote the pursuit of enterprise value. Its shortcomings is the management system, performance management system set up if not scientific, counterproductive will be greater, not only can not improve performance, in turn, will be more harmful to the development of enterprises.
3. Welfare wages
Here, the welfare class is divided into statutory mandatory benefits, such as social security insurance, high-temperature subsidies, as well as other necessary subsidies, but also includes non-statutory benefits voluntarily given to the employees, such as commercial insurance, communication subsidies, transportation subsidies, holiday allowances, and other and so on. Welfare wages are one of the company's labor costs, but can not be directly included in the basic salary of employees, or split from the basic salary. That is not reasonable! Welfare wages on behalf of the company's investment in employees and pay, in general, the more welfare wages of the enterprise, the higher the attraction of talent. You see the civil service is an obvious example. Welfare wages are characterized by more stable and controllable, based on the only initiative in the hands of the enterprise, in addition to the statutory mandatory benefits, other can give or not give, give more or less in the hands of the enterprise. Welfare wages are more of a manifestation of corporate culture, so from a financial point of view is a pure cost investment. Its shortcoming is the cost control, and it is difficult to quantitatively observe what kind of return can be obtained after paying the cost.
The strategy of pay structure is very important, how to use the above three pay structure, summarized in the following six ways:
①? Low base salary? The first is the high performance of the company's products and services. Benefits are sales result-oriented enterprise ? The first is a short sales cycle. The first is to make sure that you have a good understanding of how to use the system and how to use it.
②? High base salary ? low performance ? Emphasis on talent retention? Emphasize team building and other stable enterprises
③? Higher base salary High performance The company's business is a highly profitable one. Highly profitable companies
④? Higher base salary Low performance ? High benefits ? State-owned enterprises ? Institutions
⑤? Low base salary ? Low performance ? High benefits ? Civil servants ?
Case Note 4:
In Company B, I formulated a pay system system, a comprehensive unified standardization of the pay structure, the definition of each component of the pay structure as well as to determine its applicable positions, from executives to the lowest level of the staff have a relative specification, but also set out in detail how the pay structure of the various different positions is composed. At the same time, it eliminates all of the various pay structures that have been created by the leadership, and it eliminates all of the special grants.
Previously, Company B had some inexplicable subsidies, such as an employee needs to come half an hour early every morning to open the door, to give her 300 yuan per month to open the door subsidies. The company's education and training center core room because it involves confidentiality, cleaners are not allowed to clean, cleaned by individual employees after work, so also to clean the staff monthly subsidies of 360 yuan. There are also procurement staff to bring their own car to work, to be given 1500 yuan per month gas subsidies. More bizarrely, can not find the appropriate name of the subsidy, it is uniformly called special subsidies.
I figure out these situations above, taking into account the actual situation of employees, it is impossible to cancel. If the company hired another person, it would be a waste of cost, so we compromised and standardized it as "extra work allowance". The definition of this subsidy is that the company provides appropriate subsidies to employees for work that goes beyond their duties and requires extra time or money from the employee. The "extra work allowance" needs to be applied for, and its standard and amount will be proposed by the employing department, approved by the Human Resources Department and submitted to the Finance Department for record. And clear "extra work subsidies" must be employees in the implementation of these extra work during the period to enjoy, stop the extra work at the same time to stop enjoying the subsidies.
V. Determine a variety of salary standards
After standardizing the salary structure, the rest of the matter is to determine a variety of structural salary standards. For example, how to set the basic salary? Performance pay standards how to set? How to set the standard of welfare class salary?
1. The determination of the base class salary standard. First of all, it is necessary to base on the total annual salary base, and then a certain amount of percentage of the annual salary base is evenly distributed to 12 months. This yields a figure to be used as the median value, which is combined with the class pay, and then a series of upper and lower standards are designed.
2.? Determination of performance-based pay rates. There are two ways, sales directly according to the performance of the commission can be, and management positions are based on the relative proportion of the total annual salary as a standardized number, and then according to the results of the assessment of the personnel to complete the objectives and calculate the actual performance-based salary.
3. Welfare class wage standard determination. There is no fixed standard, mainly based on the affordability of the enterprise, based on the financial budget can be set.
Case Note 5:
Company B, the main management positions are based on the total annual salary base to determine the basic class wages, performance-based wage standards. For example, the salary structure mentioned above, a division head of the annual base salary of 350,000 yuan (in fact, this 350,000 refers to the total amount of his completion of the division's annual goals, referred to as "annual base salary"). Then his base class salary wage standard, performance class salary standard should be how to design it?
1. The employee's base salary, performance-based salary based on the proportion of the annual salary base to determine.
We assessed and communicated with him to negotiate a good, his total annual salary base of which 50% as a basic salary, which is part of the actual, the remaining 50% as a performance-based salary (which accounted for 20% of each quarter of the year, the end of the year accounted for 30%), but to be linked to the target.
2. How much is the employee's basic salary? And how are the basic pay grades designed?
Annual base salary of $350,000 times 50% yields $175,000, divided by 12 months, about $14,500/month.
There may be students who want to ask, the above base salary of 14,500 yuan / month will be fixed from now on? Then the new director is also this salary? No! The basic salary should also be set up into the grade, there are grade and grade two things. Director position in company B is a B position, but B position should also be divided into 5 levels, here assuming that 14,500 yuan for the median value, up and down a few values, B level 1 12,000 yuan, B level 2 13,000 yuan, B level 3 14,500 yuan level (that is, the median value), B level 4 16,000 yuan, B level 5 for 18,000 yuan. The grade differentials are not very fixed, but have step increases. Grade pay does not affect the total salary, but will be adjusted according to the end of the year performance performance to grade basic salary, and also with the next year's target setting has more to do with, the higher the grade the greater the target will also be.
3. How will the employee's base salary be assessed in the future?
The evaluation of the basic salary is based on the results of the job competency assessment when the employee first joins the company. The tool is the "Job Competency Assessment Form", which is based on the standards of the job competency model and assesses the employee's position to arrive at a grade. The assessment is carried out by the employee's superior and the Human Resources Department, and the general manager is required to participate in the assessment of executive positions. The assessment of the employee's basic salary level after the employee's regularization will be based on the results of the performance appraisal. In company B for two consecutive quarters for the unqualified to be reduced by one level, three consecutive quarters or a year with three quarters of performance are excellent, can be promoted to the next level. The annual completion of the target directly up a level; annual completion of less than 80% of the target, down a level; annual completion of less than 60% of the target, may consider the termination of the labor contract or transfer to deal with, and so on.
4. How is the employee's performance pay standard designed?
Quarterly performance bonus base: annual salary base of 350,000 multiplied by 20% divided by 3 quarters (the last quarter with the end of the year), each quarterly performance bonus of about 23,000 yuan as the quarterly performance bonus base. Year-end performance bonus base: $350,000 multiplied by 30% yields $105,000 as the year-end performance bonus base. The bonus base is not equal to the actual bonus received, but is used as the base for bonus calculation. The actual bonus = bonus base multiplied by the actual completion rate, exceeding the target is also the same as the base calculation of the bonus; less than 60% is no bonus.
Sixth, the preparation of salary system related documents
Above the salary system design of the major matters are completed, we must draft the preparation of a complete salary system system and operating procedures. The payroll design series of standard processes to standardize down, a lot of content.
At least to include the following:
1. Salary system goals and principles.
2. The scope of application of the salary system.
3. Components and definitions of the pay structure.
4. Salary structure and composition of each position.
5. Rating method and process of basic salary.
6. Calculation method of basic salary.
7. Recognition of overtime work and calculation of overtime pay.
8. Calculation of performance pay (here we only talk about the calculation of performance pay, not how to set up or assess the performance, which is detailed in the performance system system documents).
9. The standard of welfare and subsidies for each position and related regulations.
10. All types of paid leave standards and leave regulations (here leave regulations do not include leave approval process, that is the attendance system and process regulations).
11. payroll time and procedures.
12. The complaint and handling process of wage accounting errors.
Annex Forms:
1. The company's positions in the grade level table.
2. The detailed table of basic salary standard of the company's grades and ranks.
3. Job competency assessment form.
Related systems and forms:
1. The company's performance management system.
2. Company performance appraisal related forms.
1.