Several problems in the diagnosis of enterprise salary management

In consulting practice, we often come into contact with some enterprises, whose basic human resource management is very weak, and they are privately called "ignorant enterprises". Their consulting needs mainly focus on defining job responsibilities, designing salary management system and performance management system, commonly known as "3P". Among them, the design scheme of salary management system is the most easy to land after consultation and has practical effect on enterprises, and it is a module worthy of our attention. Usually in the diagnosis stage, we will find that there are some common problems in the salary management of these enterprises, which need to be solved urgently. After summing up, there are mainly the following points:

1, lack of compensation strategy

Enterprise strategy is actually an enterprise strategy, a plan for the integrity, long-term and basic problems of the enterprise, and a choice and action based on the future to adapt to environmental changes, win competitive advantages and achieve business performance. What it wants to solve is to answer the question "What do we do and how to win in business". Human resource strategy is an effective support for enterprise strategy, which answers the question "What role does human resource play in our success". The salary strategy of an enterprise is the decomposition and refinement of the company's human resource strategy. The center of salary strategy is to help enterprises win and maintain competitive advantage with a series of salary choices, and its answer is the question of "how does the overall salary system help us win". In this kind of enterprises with weak management foundation, few companies have feasible enterprise strategies, and even fewer companies have human resources strategies and salary strategies that are in line with enterprise strategies and enterprise status quo. Leading, following and lagging compensation strategies are suitable for different stages and types of enterprises respectively. In these enterprises, they don't know how to use different salary strategies in different development of enterprises.

2. Lack of salary concept

The salary concept clarifies the value orientation advocated by enterprises in salary management and is the soul of the salary system. It points out why companies pay for their behavior and performance. In most enterprises with weak management foundation, they don't know what kind of value they should pay and lack the concept of salary. Their usual practice is to allocate value according to administrative level, educational background and working years in the enterprise, but they don't pay due attention to the responsibilities and risks of the position, the skill level of employees, the ability of employees and other real key factors that produce performance.

3. The position value is not quantified, and the internal fairness of salary is insufficient.

In many enterprises with weak management foundation, the internal unfairness of salary is more serious than the external competitiveness of salary. Generally speaking, business owners will pay attention to all levels of fairness in salary management-the fairness of the income of owners of various production factors, the horizontal fairness of employees' salary at the same level, and the vertical fairness of employees at different levels. However, they often only pay attention to the fairness of salary design results, but ignore the concern about the procedural fairness of salary definition. In the eyes of the bosses of such enterprises, as long as the salary of employees is equivalent to their relative work value or contribution to the enterprise, it is not important that the design and operation of the salary framework is an open and hidden operation. Therefore, a considerable number of enterprises choose the salary framework of black-box operation, which will not cause any big problems when the scale of the enterprise is small, but will cause problems once the scale of the enterprise is large. In our consulting practice, we often encounter some such questions: "How to balance the treatment of personnel in functional departments and business departments?" "How should the treatment of sales staff and technicians be balanced?" "Should the same administrative levels, such as directors and managers, be treated equally?" . These problems are essentially: the relative value of positions in enterprises! From the perspective of enterprise value chain, if the problem of value evaluation is not effectively solved, it will greatly affect value creation, and then affect distributable value, and the transmission function of value chain will be greatly weakened! If the position value is not clearly defined, it will cause a series of major problems such as unfair evaluation and unfair distribution, which will affect employee morale and organizational cohesion, thus causing the loss of key talents in the company. With the improvement of information technology and management tools, enterprises with weak management foundation need to enter the lean management stage, which requires enterprises to analyze the decision-making content according to quantitative and scientific thinking habits.

4. The salary structure is unbalanced.

The salary structure consists of various salary units, which can generally be divided into fixed salary (basic salary, etc.). ), floating salary (performance salary, bonus, etc. ) and benefits and allowances. There are two main manifestations of salary structure imbalance: the first is salary structure imbalance. For example, in many enterprises with weak management foundation, welfare as a salary element is often not paid enough attention. The imbalance of salary structure will lead to the lack of flexibility in the operation of enterprise salary system, which can not meet the different needs of most employees in salary, especially affecting the combination effect of short-,medium-and long-term incentives for employees. Many enterprises have completely turned welfare into a health care factor, and the incentive effect is very poor, and the design of self-help welfare has not attracted attention. The second is that the proportion of salary unit combination of all kinds of personnel is unbalanced, such as the proportion of fixed salary is too high and the proportion of performance salary is too low, which will easily lead to the failure of the incentive effect of salary.

5. Lack of career development channels leads to a single salary increase channel.

In most enterprises with weak management foundation, the career development channels of employees are not considered. Lack of career development channels for employees and poor salary promotion channels are not conducive to effective incentives for employees. Another consequence is that China has a strong sense of "official standard", and people generally judge their contribution to enterprises by the size of management "career anchor" or "official rank". Therefore, management positions in enterprises have become the career development goals of employees at all levels. A single "official standard" or management "career anchor" development channel will induce most employees with good development potential to first consider putting all their energy into the promotion of their posts, thus narrowing the survival and development space of high-quality employees in enterprises, which is extremely unfavorable to the long-term development of enterprises.

6. Salary is not "dynamic", and the correlation between salary and performance is not strong.

In most enterprises with weak management foundation, there is no strong correlation between employee compensation and performance. Excited.

7. Not paying enough attention to other incentives besides money, ignoring the salary of "elite employees" in the salary system, which has become extremely rigid and cannot well reflect the incentive effect of salary. In salary management, the purpose of implementing dynamic salary is to link the salary of employees with the business performance, team performance or personal performance of enterprises, so as to realize an institutional arrangement of risk sharing and profit sharing between enterprises and employees. In scientific salary management, salary will generally be "moved" by adjusting salary difference, post grade difference, planned proportion of total salary, adjustment of salary point value and adjustment of assessment coefficient. An important reason for the static salary is the low level of enterprise performance management, and there is no scientific basis to make the salary "move". The most common form of static and dynamic salary is that the payment of performance salary and bonus is not linked to the performance appraisal results, which leads to the phenomenon of "more work and less pay" and "no contribution to the work", which seriously affects the enthusiasm of employees. Another common phenomenon is that although the payment of dynamic compensation is linked to the performance appraisal results, the performance appraisal results are not a true reflection of actual performance, which makes the payment of dynamic compensation a mere formality and cannot effectively play its incentive value. "

In most enterprises with weak management foundation, the boss thinks that salary is money. This is an extremely wrong idea. Generalized salary can be divided into two parts: internal salary and external salary. External salary refers to the substantial things such as wages, bonuses, allowances and benefits paid by enterprises to employees, which requires enterprises to pay the price in terms of economic resources. Intrinsic reward refers to people's satisfaction from the work itself, and generally does not require enterprises to spend any economic resources. It is the "money-only theory" of enterprises that greatly ignores the latter. This is a typical and primitive salary management concept, so the personality of employees is not respected, and outstanding talents are not valued and developed. According to Maslow's demand principle, money can only meet the needs of physiology, safety and some social types, and the needs of respect and self-realization can often not be met through money. In many enterprises, many high-tech talents leave not because of too little money, but because "spiritual value" has not been properly motivated.

8. The salary incentive is not timely.

Because the overall management level of enterprises is low, the line managers of many enterprises have not mastered the skills to effectively motivate their subordinates, which greatly reduces the timeliness of salary incentives. When employees have made outstanding achievements through their own efforts, at this time, if the line manager does not use incentives including salary incentives, it will greatly dampen the enthusiasm of employees. This is also a reward. If it takes a few months, its role will be greatly reduced, and its exemplary role for other employees will also be greatly reduced. When an employee makes an act that the company advocates and encourages, he will always pay attention to the behavior of the company's management. If his behavior is not motivated in time, it will greatly affect his work initiative and enthusiasm. Managers of enterprises, please boldly and timely affirm those outstanding employees!

The importance of salary for employees and enterprises determines the importance of salary management.

The so-called salary management refers to the process of determining the total salary, salary structure and salary form for all employees' services. In this process, enterprises make decisions on salary level, salary system, salary structure, salary composition and salary of special employee groups. At the same time, as a continuous organizational process, enterprises should constantly make salary plans, draw up salary budgets, communicate with employees on salary management issues, evaluate the effectiveness of the salary system, and then constantly improve.

Salary management is a thorny issue for almost any organization, mainly because the salary management system of enterprises should generally achieve three goals of fairness, effectiveness and legality at the same time, and the requirements of enterprise management are getting higher and higher. However, as far as salary management is concerned, there are more and more restrictive factors, which involve not only the basic economic affordability of enterprises and government laws and regulations, but also the strategies of enterprises in different periods, the positioning of internal talents, the external talent market and competitors in the industry.

Therefore, for enterprises, salary should play a full role, and salary management must provide strong support for establishing enterprise values and organizational concepts, and complement each other with enterprise management strategies. For employees, the basic premise of its effectiveness is external competitiveness, fair internal value distribution and equal value acquisition. Based on the consideration of both enterprises and employees, the goal of salary management should be to attract talents, make them continue to serve, and motivate them to produce good results under relevant constraints.

In order to achieve the goal of salary management, enterprises must make some important decisions in the process of salary management. It includes three core decisions: salary system, salary level and salary structure, and three supporting decisions: salary composition, special group salary and salary management policy.

1, salary system. Salary system is a method used by organizations to determine personal salary increase, which can be calculated by the time spent by organization members at work (time-based system) or measured by performance and efficiency (performance-based system). The main task of salary system decision-making is to determine what the basic salary of enterprises is based on. At present, the common systems in the world include post salary system, skill salary system and ability salary system. As the name implies, it means that enterprises determine the basic salary level of employees according to their own value, skill level, ability or qualifications for the work they are engaged in. Among them, the post salary system is based on work, while the skill and ability salary system is based on people's salary system.

2. Salary level. Salary level is the average of several salaries or annual salary in an organization, which can be based on the individual salary level of a single position or the average salary level of several positions, which determines the external competitiveness of enterprise salary. In the traditional concept of salary level, we pay more attention to the overall salary level of enterprises. However, in the increasingly fierce market competition, enterprises pay more and more attention to the comparison of salary levels between positions or similar jobs in different enterprises. At present, the external market salary survey done by consulting companies can effectively solve this problem.

The main factors affecting the decision-making of enterprise salary level include: the salary level of competitors in the same industry or region; Enterprise's ability to pay and salary strategy; Social cost of living index; And trade union policy in the case of collective bargaining.

3. Salary structure. Refers to the relationship between salaries of different positions in the same organization, which is a salary matrix composed of vertical salary scales and horizontal salary scales of the organization. It involves the internal consistency of salary. The internal structure of the enterprise actually reflects the enterprise's view on the importance and value of the position. If the salary level will have a great impact on the attraction and retention of employees, then the rationality of the salary structure will often have a great impact on the turnover rate and work enthusiasm of employees. Generally speaking, enterprises often ensure the fairness and rationality of salary structure through formal or informal job evaluation.

The so-called egalitarianism and "big pot" problems of China enterprises, especially state-owned enterprises, are quite obvious in the salary structure. The unreasonable salary structure is an important reason why many enterprises have the situation of "those who want to stay can't stay, and those who don't want to stay can't leave".

4. Salary composition. Refers to the components of the total wages received by employees, including indirect remuneration paid in the form of benefits or services. Usually divided into direct wages and indirect wages. The former is the salary paid directly to employees in the form of money and related to the working hours, performance and quality provided by employees. The latter includes welfare, services, etc. , which has economic value but is provided to employees in non-monetary form, is often not directly related to employees' working hours and performance quality.

5. Pay of special groups. A complex organization usually has several different employee groups, which are divided by management level or function type. In some cases, it is beneficial for both enterprises and employees to treat different types of employees differently in terms of salary. Usually, salespeople, professional technicians, managers, especially senior managers, can be regarded as special employee groups.

6. Salary management policy. It mainly involves the salary cost and budget control mode of enterprises, and whether the salary system, salary regulations and salary level of employees are confidential. The salary management policy must ensure employees' views on the fairness of the salary system, and that the salary system is conducive to the realization of the organization and employees' personal goals.

As a professional manager of an enterprise or a staff member of an external consulting organization, only by truly understanding the actual situation of the enterprise and the needs of employees can we effectively make the above-mentioned decisions, really play the role of salary, and achieve the purpose of attracting talents, making them continue to serve and encouraging them to produce good results. This requires everyone to continue to pay attention to salary management, and to understand and master relevant knowledge and skills, and constantly improve and enhance the salary management level of themselves and enterprises.