From the psychological point of view, salary is a psychological contract between individuals and organizations, which affects employees' work behavior, attitude and performance through their perception of salary, that is, it has an incentive effect.
The salary expected by employees can meet the basic needs; Employees expect their salary income to be more stable or the stable salary income will increase; Employees expect their salaries to be equal to those of their colleagues and be treated fairly.
Under normal circumstances, after employees' low-level salary needs are met, there will usually be higher-level salary needs, and employees' salary needs often coexist at multiple levels. Therefore, enterprises must pay attention to meet the salary needs of employees at different levels at the same time.
The principle of salary:
Legitimacy: the salary system must conform to the policies and laws of the party and the state, such as the minimum wage, employee insurance and other laws and regulations.
Competitiveness: The salary standard set by enterprises should be attractive in the society and talent market.
Incentive: The salary standard should be attractive to employees, appropriately increase the salary level of all levels and positions within the enterprise, mobilize the enthusiasm of employees and improve labor productivity.
Economy: a higher salary level can improve its competitiveness and motivation, but it will inevitably lead to an increase in labor costs. An economic and reasonable salary system should not only maintain the maximum possible labor productivity, but also maintain the market competitiveness of enterprise products.