What principles should salary management follow? 1. Competition principle.
According to the investigation of the market salary level, the salary level of the post which is far from the market level should be adjusted to some extent, so that the company's salary level has certain market competitiveness.
Second, the incentive principle
Break the wage rigidity, enhance the wage flexibility, and closely combine the employee's income with the company's performance and personal performance through performance appraisal, thus stimulating the employee's enthusiasm.
Third, the principle of fairness.
The design of salary management focuses on establishing a reasonable value evaluation mechanism, and under the unified rules, the final income of employees is determined by the performance appraisal of employees.
Fourth, the principle of economy
The increase in labor costs corresponds to the increase in the total profit of enterprises. With an appropriate increase in wage costs, employees can create more economic value and achieve sustainable development.
Salary management classification (1) Monetary salary:
Including direct monetary compensation, indirect monetary compensation and other monetary compensation. Direct wages include wages, benefits, bonuses, prizes, allowances, etc. Indirect compensation includes pension insurance, medical insurance, unemployment insurance, industrial injury and survivor insurance, housing accumulation fund, catering and so on. Other monetary remuneration includes paid holidays, holidays and sick leave.
(2) Non-monetary wages:
Including work, society and other aspects. Among them, work includes the sense of superiority of work achievement, the challenge and responsibility of work; Social aspects include social status, personal growth, personal value realization and so on. Other aspects include friendship and care, comfortable working environment and flexible working hours.
Salary mode recommendation: 1, post salary mode.
The post salary mode is to determine the employee's salary level according to the relative value of the post by evaluating the factors such as post responsibilities, labor intensity and working conditions. Companies usually set up a special post evaluation team or hire a consulting company to evaluate all the internal posts, get the salary points of each post, and sort and classify the posts according to the size of the salary points to form a post salary scale system. Many enterprises adopt post salary system, which is actually a special form of post salary. Because in the factors of post evaluation, post responsibility is decisive, and post system reflects the size of post responsibility to a great extent. Through the division of job grades, positions are divided with thick lines. The post salary model generally reflects the difference of relative value created by employees at different post levels for the company, but there is no clear division of the contributions made by employees at different posts at the same post level.
2. Competency-based compensation model
Competency-based salary refers to the fact that an enterprise determines its basic salary level according to its employees' abilities or qualifications, not for people, and the ability based on posts accounts for the vast majority of the total salary; The ability of employees is linked to salary and promotion; The assumption of its design is that people with high ability will achieve high performance, so that employees can realize that high ability will achieve high performance; The salary increases with the improvement of ability, and the person with the highest ability has the highest salary; Managers pay attention to the value-added of employees' abilities. Competency-based salary model is not a general ability, but a combination of specific abilities that can predict excellent performance. It is a basic salary system based on knowledge, skills, self-cognition, personality characteristics, motivation and other comprehensive factors, which is broader than the skill salary system. This ability-based salary system is especially suitable for high-tech enterprises and knowledge-based enterprises, and meets the requirements of establishing a learning organization.
3. Performance-based compensation model
Based on the assumption of post salary model, the performance of static post responsibilities will inevitably bring good results. Today, with the huge environmental uncertainty and the routine reform, the conditions for establishing this hypothesis have changed greatly. Enterprises require employees to actively set goals according to environmental changes and challenge the past. Just doing the right thing can no longer meet the needs of competition. Enterprises emphasize to do the right thing, want the result, not the process. Therefore, the salary of employees is determined by evaluating a series of assessment indicators such as task completion, work behavior and work attitude. Bert Consulting believes that the basis can be the overall performance of the enterprise, the overall performance of the department, or the performance of the team or individual. Which one to choose as the basis of performance pay depends on the nature of the post. In general, multiple performance outcomes should be considered. Performance-oriented employee behavior is very direct, employees will work around performance goals, and will do their best to achieve the goals and strive to innovate. "Effective" is the employee's code of conduct, not the conservatism and standardization under the post salary system. In fact, performance pay reduces management costs and improves output. Performance-based wage system is widely used in enterprises, especially in industries with high degree of marketization and fierce competition, and this wage model is more suitable.