1 Problems in Salary Management of SMEs in China

1. 1 I don't know much about salary management.

Small and medium-sized enterprises are generally private enterprises, and most of their operators only pay attention to the production input of enterprises, but do not realize the importance of human resource management in enterprises, let alone the correlation between salary management and enterprise development goals. They think that the salary expenditure is unilateral. This concept leads to the lag of enterprise salary management, and it has also become one of the main reasons that hinder the development of small and medium-sized enterprises.

1.2 The salary system does not match the development of the enterprise.

When enterprises are in different development periods, the salary system should be adjusted in time to meet the needs of enterprise development. The life cycle of an enterprise is generally divided into: initial stage, high-speed development stage, mature stage, stable stage, decline stage and revival stage. For example, the enterprise is in the initial stage, and its income and market share are relatively low. We basically follow the principle of low basic salary, low welfare and high bonus when formulating salary standards, so as to minimize labor costs, mobilize the enthusiasm of employees and lay the foundation for the future development of the enterprise. In the period of rapid development of enterprises, our basic salary must be competitive, the bonus should be greatly improved, and the corresponding benefits can be lower, so as to retain outstanding talents and improve the competitive strength of enterprises.

1.3 The salary system design is unscientific.

The salary design of small and medium-sized enterprises does not follow the standard design process, lacks practical research, and the designed salary system has no scientific basis and is arbitrary. Such a salary system lacks internal fairness, which reduces employees' satisfaction with salary, dampens employees' enthusiasm for work and greatly reduces the efficiency of enterprises. At the same time, due to the lack of external competitiveness, the salary of small and medium-sized enterprises is often lower than the market average, which will cause potential talents to quit to other companies with relatively high salary after accumulating certain experience. On the other hand, it is difficult to attract high-quality talents.

1.4 The salary system is opaque.

At present, the salary system of many small and medium-sized enterprises is directly formulated by senior managers, without scientific job analysis, job evaluation, salary survey and other processes. Employees did not participate in the formulation of the salary system, but passively accepted the salary, not knowing the composition of the salary structure of the enterprise and the reasons for the difference between their own salary and that of other employees. Salary increase and bonus payment are generally not open, which leads to employees' distrust of the company and wonder whether their contribution to the company has been fairly rewarded.

1.5 the performance system is not perfect

Small and medium-sized enterprises often do not have a perfect performance appraisal system, and the salary level is mainly based on academic qualifications, professional titles and post grades, ignoring the factor of post value, which will greatly dampen the enthusiasm of employees, and it is difficult to recruit people for some positions with high technical ability and poor working environment. Even if some enterprises have established a performance appraisal system, there are many subjective factors in the implementation process, and the assessment is also the decision of the leaders, which is ineffective.

1.6 welfare system is not perfect

The imperfect welfare system is another important factor that makes it difficult for small and medium-sized enterprises to recruit and retain people. The definition of salary includes economic salary and non-economic salary. Small and medium-sized enterprises often only pay attention to economic salary when formulating salary system, but ignore the incentive effect of non-economic salary on employees. Some enterprises achieve the goal of retaining people by raising the salary level, but this often means that they cannot retain outstanding talents for a long time, but it will increase the labor cost of enterprises and reduce their competitiveness in the market. Enterprises should pay attention to the improvement of non-economic salary to stimulate the enthusiasm of employees, especially outstanding talents, and pay more attention to non-economic salary levels such as personal development opportunities and work achievements.

2 China's small and medium-sized enterprises compensation management countermeasures

2. 1 Improve the awareness of small and medium-sized enterprise operators on strategic compensation.

Enterprise managers should strengthen the connection between organizational strategic objectives and salary strategy to make the operation of enterprises more effective. Once the enterprise's strategy is determined, the enterprise should consider how to design the human resources policy, especially the salary strategy, to help the enterprise bear the pressure from society, competitors and laws, so as to win and maintain its competitive advantage and support its business strategy.

2.2 SMEs should standardize the design process of salary system.

First of all, we should introduce job analysis. Job analysis is a process of systematic analysis and research on the purpose of job setting, job responsibilities, job content, working relationship and job qualifications. Manage every position in the enterprise, and formulate job descriptions and job descriptions. Scientific job analysis is the basis and premise of doing a good job in salary design. Secondly, scientific job evaluation is the key step to ensure the internal fairness of employees' salary level. Small and medium-sized enterprises can choose appropriate job evaluation methods according to their own actual conditions, objectively evaluate the relative value of jobs, and determine the salary level of employees on this basis. The salary level determined by job evaluation is more scientific and reasonable, and employees are more convinced, thus improving employees' satisfaction with the internal fairness of salary. Finally, salary survey is an important part of salary design. Setting the salary level too high will increase the labor cost of enterprises, and setting it too low will lack competitiveness, so how to determine the appropriate salary standard depends on the results of salary survey. Salary survey includes internal salary survey and external salary survey. Understand employees' expectations of salary through internal investigation, and understand the demand of labor market and salary standards of various talents through external investigation, so as to determine the salary level of employees in this enterprise.

2.3 improve the transparency of enterprise compensation system

Enterprises can let employees moderately participate in the design process of salary system, understand the company's salary structure and payment standards, and make the salary system more acceptable to employees, thus reducing employees' suspicion and misunderstanding and improving employees' satisfaction with salary. A transparent salary system can also let employees know what enterprises encourage employees to do and what qualities employees need to have in order to improve their salary level, thus guiding employees to make personal development plans according to their personal abilities.

2.4 Improve the enterprise performance system

Performance management is at the core of human resource management in enterprises, and the results of performance appraisal are often used by enterprises as the basis for rewards and punishments, training, promotion and dismissal. Therefore, enterprises must formulate a fair and reasonable performance appraisal system to effectively stimulate the enthusiasm of employees, enhance their own abilities, and thus promote the development of enterprises.

2.5 Give full play to the incentive effect of non-economic compensation on employees.

Maslow's hierarchy of needs theory mentions that material value demand belongs to low-level demand, and when it reaches a certain level, the marginal utility will decrease. Therefore, small and medium-sized enterprises must effectively combine economic compensation with non-economic compensation to meet the higher-level needs of employees. The non-economic salary here includes providing employees with training opportunities, promotion opportunities, giving employees a sense of honor and providing a good working environment.

3 Conclusion

Small and medium-sized enterprises must realize that the competition between enterprises is, in the final analysis, the competition for talents. In order to attract, retain and motivate outstanding talents, they must formulate a scientific and reasonable salary system that conforms to the development of their own enterprises. However, at present, the salary management of most small and medium-sized enterprises in China needs to be further standardized. I hope this paper can provide some reference for the salary system reform of small and medium-sized enterprises.

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