Strategic compensation is actually a way of looking at the concept of compensation management, the core of which is a series of strategic decisions made in order to maintain the competitive advantage of the enterprise, requiring the enterprise to make decisions to take full account of the internal and external environment of the enterprise, analyze the opportunities and threats in the environment, and adjust their compensation strategy according to the strategic objectives of the enterprise, so that the enterprise compensation system becomes an important lever for the realization of the enterprise strategy. Its main design process is:

Strategic analysis. The strategic analysis analyzes whether the current strategy of the enterprise is growth, stability or contraction strategy, and whether the corresponding human resource strategy is market following, cost leadership or innovation strategy, to determine the pay level and pay structure of the enterprise.

Compensation survey. Enterprises can obtain the industry and regional salary levels of specific positions through research, and based on this, according to the enterprise's strategy and human resources strategy, to determine the salary level of the low band, middle band or high band.

Job analysis. Mainly through the systematic collection and determination of information related to the organization's target positions, research and analysis of the target positions, and ultimately determine the name of the target positions, supervisory relationships, job duties and requirements, etc.. Within the same enterprise, the salary positioning of different positions will be different. The salary positioning of different enterprises determines different key positions, and enterprises should tilt the salary to these key positions according to the actual situation, so as to realize the structural tilt of the salary strategy.

Job evaluation. Utilizing methods such as the sorting method, the element comparison method or the element counting method, the value sequence of each position is ranked, and the different positions in the enterprise are divided into grades from the vertical level.

Competency evaluation. At the parallel level, the pay level of the same position is graded, relying on the competency evaluation to determine the pay level of the incumbent.

Performance Evaluation. Performance evaluation indicators have a strong guiding role, so it is necessary to comprehensively consider the key indicators in terms of work input, work process and work results, but also to classify the evaluation, the nature of the work, the work content is basically the same group of organizations and employees of the assessment indicators to be categorized.