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The role and importance of salary management
The role and importance of salary management 1 Salary management is an important part of human resource management activities, and its role is not only reflected in human resource management, but also of great significance to the whole organization management, especially the salary level.

(A) the role of salary management in the overall organizational management

1, salary management is an important embodiment of managers' humanistic management thought.

Wage is the reward for laborers' labor and the compensation for laborers' various labor consumption. Therefore, the wage level is not only an affirmation of the labor value of workers, but also directly affects their living standards. The so-called humanistic management thought is to respect the needs of human capital owners and relieve their worries. It is hard to imagine that an organization advocates people-oriented, but its salary system can't guarantee the basic living standards of its employees. Today, with the improvement of the material living standard in China, managers should not only ensure the basic living of employees, but also adapt to the all-round development of society and individuals, provide more comprehensive living security and establish a salary system suitable for the national economic development level.

2. Salary strategy is one of the basic strategies of the organization.

An organization has many sub-strategies, such as market strategy, technology strategy and talent strategy, among which salary strategy is the most important part of talent strategy, so it is also one of the basic strategies of an organization. An excellent compensation strategy should play four roles for the organization:

(1) attract outstanding talents to join;

(2) Retaining key employees;

(3) Highlight the key business and post of the organization;

(4) Ensure the realization of the overall strategy of the organization.

3. Salary management affects the profitability of the organization.

Wages are rewards for workers and costs for organizations. Although modern human resource management concept can't simply look at salary from the perspective of cost, maintaining advanced labor productivity, effectively controlling labor costs and giving full play to the maximum role of established salary will undoubtedly play a direct role in increasing organizational profits, enhancing organizational profitability and thus improving competitiveness.

(B) the relationship between salary management and other human resources management links

Due to the holistic characteristics of modern human resource management, salary management is also closely related to other human resource management links. Dong Keyong and Ye Xiangfeng believe that the main relationship is as follows:

1, the relationship between salary management and job analysis.

Job analysis is the basis of salary design, especially for the post salary system, and it is also a necessary prerequisite for establishing an internal fair salary system. The job description formed by job analysis is the basis for job evaluation to determine the salary level, and most of the job evaluation information comes from the content of job description. Even under the new skill wage system, job analysis is still of great significance, because the evaluation of employees' skills is still based on their work.

2. The relationship between salary management and human resource planning.

The relationship between salary management and human resource planning is mainly reflected in the balance between supply and demand of human resources. The change of salary policy is an important means to change the internal supply of human resources. For example, increasing the amount of overtime pay can encourage employees to increase overtime hours, thus increasing the supply of human resources. Of course, this requires strict control of normal working hours.

3. The relationship between salary management and recruitment.

Salary management has an important influence on recruitment. Salary is one of the important factors that employees consider when choosing a job. A higher salary level is conducive to attracting a large number of candidates, thus improving the recruitment effect. In addition, recruitment will also have an impact on salary management, and the number and structure of employees are the main factors that determine the increase of the total salary of the organization.

4. The relationship between salary management and performance management.

There is an interactive relationship between salary management and performance management. On the one hand, performance management is one of the foundations of salary management, and the implementation of incentive salary needs to make an accurate evaluation of employees' performance; On the other hand, giving different incentive pay in time for employees' performance will also help to enhance the incentive effect and ensure the binding nature of performance management.

5. The relationship between salary management and employee relationship management.

In the labor relations of an organization, salary is one of the most important issues, and labor disputes are often caused by salary problems. Therefore, effective salary management can reduce labor disputes and establish harmonious labor relations. In addition, salary management also helps to shape a good organizational culture and maintain stable labor relations.

Misunderstanding of salary management

1 overestimates the role of compensation as an independent system.

From the overall management process, salary management belongs to an end link of enterprise human resource management, behind which is a series of human resource management functions, especially after job analysis and evaluation and performance management are completed. However, the role of salary management is not just to "share the cake" or reward according to work. Salary distribution itself is both a result and a process. Furthermore, the distribution methods, standards, rules and final distribution results stipulated in the salary system itself will in turn have an impact on the source of people entering the value creation process and the value creation process itself. In other words, the information conveyed by the salary distribution process and its results may lead to higher work enthusiasm, stronger desire to learn and innovate, and may also lead to laziness and lack of motivation to learn and make progress.

At present, a considerable number of enterprises in China regard salary as the only or the most important means to motivate employees. I believe that under the reward, there will be brave people, as long as the salary is high, everything will be easy; As long as enough salary is paid, enterprises can reduce many troubles in human resource management, such as it is easier to recruit first-class employees, it is more difficult to let employees leave their jobs, and it is easier to put pressure on employees to work hard. In these enterprises, salary often becomes an incentive for employees, and salary increase becomes the most handy means to solve people's problems.

According to Herzberg's two-factor theory, salary is mainly a health care factor rather than an incentive factor. In other words, a high salary level may ensure that employees will not feel dissatisfied, but it does not naturally lead to employee satisfaction. In fact, this situation is fully reflected in the employees of many enterprises in China, especially those with higher education. In the labor market, many people quit high-paying jobs in order to give full play to their personal abilities and seek to adapt to their own corporate culture and leadership style, preferring to accept jobs with slightly lower salary levels. In fact, many times, employees complain about the salary level of enterprises, and the real reason is not necessarily the salary itself. It is likely that employees have opinions on other aspects of the enterprise's human resource management system, just using wages to say things. At this time, the salary increase is only compensation for the psychological loss caused by employees' dissatisfaction in other aspects, and it will not produce the incentive effect expected by enterprises at all.

2. The salary structure is fragmented, and the basis for determining the basic salary is chaotic.

From the payroll of many domestic enterprises, we can see as many as five or six items, seven or eight items or even a dozen items, which look very complicated. The reason is that the salary system design of many enterprises is a mechanical design idea, and some factors should be reflected in the salary, such as the importance of the post, the level of skill requirements, the minimum living expenses and so on. , which must be set separately in salary structure. In fact, in many cases, the more fragmented the salary structure of an enterprise is, the more difficult it is to reasonably reflect the difference in the salary level of employees, because since you have set up a salary project separately, everyone has to take a little more or less. Not only that, too many salary components will also cause another bad consequence, that is, the salary level of employees depends on what becomes blurred. Employees don't know what is the main reason for determining the difference between their own salary and others, how to increase their salary income through personal efforts, and what the salary system of the enterprise encourages and what the relationship is with the strategy of the enterprise.

According to the actual situation of enterprises in China, the method of determining basic salary based on posts is more applicable for employees in management, business and production, at least at the present stage. However, it should be pointed out that there are still many misunderstandings in the definition and evaluation of posts, even in some domestic enterprises that have clearly implemented post compensation. In many enterprises in our country, the basic salary is not so much determined by the position, but rather by the administrative level or personnel category, rather than the position determined after analysis and evaluation in the real sense. For example, department managers in many enterprises get basically the same salary on the grounds that they belong to the same kind of position, but in fact, the pressure borne by different department managers and their contribution to the strategic objectives of enterprises are quite different. You can say that they are at the same administrative level, but you can't say that they belong to the same level of posts. The actual quantitative job evaluation results in some large telecom enterprises and insurance enterprises show that different department manager positions can usually be divided into three or four different job levels.

For enterprises, it may be more reasonable and advantageous to implement the skill-based basic salary determination method for technicians. Only in the case of implementing the skill wage system, enterprises must formulate a clear skill grade evaluation and re-evaluation plan, which cannot be made into a disguised seniority. At present, Chinese enterprises only rely on the national professional title evaluation system to define the skill level of technicians, which is far from meeting the needs of human resource management. Enterprises must study and formulate grade standards suitable for their own skills and qualifications, and conduct regular assessment and re-evaluation to ensure that the skill wage system is truly implemented.

3. The salary system has a single incentive method and poor incentive effect.

In the case of a certain basic salary gap, the incentive of salary to employees mainly depends on two main tools, one is performance salary increase, and the other is bonus payment. The so-called performance salary increase is a way to increase the basic salary of employees on the basis of the existing basic salary of employees, referring to the market salary level, and mainly based on the performance appraisal results of employees (sometimes considering the performance of their departments and the performance of the whole company). Bonus is also a cash reward mainly related to employees' personal performance. However, there is a big difference between the two: performance salary increase will lead to the continuous increase of employees' basic salary, while bonuses are mostly paid in one lump sum. The distribution of bonuses does not change the basic salary level of employees. Performance pay increase has a rigid feature. Although the salary increase is often very small, it may lead enterprises to unconsciously raise the basic salary of employees to the point where accumulated costs pose great pressure. At the same time, this accumulated salary increase is gradually regarded by employees as a natural acquired right, rather than an incentive force. Therefore, enterprises can pay a higher level of bonuses when their performance is excellent, and properly control the payment of bonuses when their performance is poor, thus properly controlling costs.

At present, in many enterprises in our country, the salary system of production workers is more and more reasonable and closer to the requirements of the market, but the salary system design of management, business, technology and some marketing employees still has a strong color of traditional planned economy system. Many enterprises have long called for widening the income distribution gap within enterprises, but in fact it is often much cry and little rain. We know that the income gap of employees depends on the importance of their work in the enterprise and the external market, and on the actual performance of employees in their current jobs.

The role and importance of salary management Part II: Salary management is an important tool of enterprise management. In order to give full play to its effective incentive effect on employees, enterprises need to establish a matching management system. Performance-based salary management can give full play to employees' enthusiasm, improve employees' satisfaction and identity, and realize the sustainable development of enterprises through reasonable allocation of salary level and structure.

Keywords: performance pay; Incentive; modern enterprise management

The traditional salary management only has a single material reward attribute, and pays little attention to the needs of other aspects of the managed. Employees tend to ignore the process of * * * development and * * * growth of enterprises and themselves, and work only to complete tasks every month, which is not conducive to better motivating employees. The most critical concept in establishing the salary system of modern enterprise management is to guide employees to change from "I go to work" to "I want to go to work". Therefore, the performance-based salary management model has been applied by more and more enterprises, and the effect is obvious. Performance-based pay management is not a simple form of pay linked to the number of products, but a pay system based on scientific pay standards and management procedures. The salary we are talking about here is no longer a simple price expression. It includes not only specific forms such as salary, bonus, welfare, subsidy and equity, but also intangible conditions and opportunities such as personal identity, sense of value, humanistic environment and learning and growth.

I. Economic remuneration

In the actual work of enterprise salary management, the design of this kind of salary is the most typical and important work. It is mainly divided into four aspects: salary, bonus, welfare and subsidy.

1. salary

As long as employees sign labor relations contracts with enterprises and are still in normal employment in enterprises, they can enjoy basic wages. Wages should be determined according to different positions. Through the description of the job description, the positions with different difficulties are classified into grades, and the specific grades are determined by the enterprise managers themselves.

Step 2: Bonus

Bonus is one of the manifestations of motivating employees in salary, and what we call performance salary management is mainly aimed at this content. In order to attract and retain employees and motivate employees to realize the expected behavior of the organization, it is necessary to design an effective performance pay management system.

3. Welfare

Welfare mainly includes insurance (endowment insurance, industrial injury insurance, medical insurance, unemployment insurance, maternity insurance, housing accumulation fund), paid vacation, free canteen, bathing and other items. This kind of welfare that all employees can enjoy can effectively unite the centripetal force of employees, and it is also one of the highlights of enterprises throwing olive branches to other talents.

4. Allowance

Subsidies are supplements to some employees' special treatment, such as high temperature allowance, business trip allowance, female employee welfare allowance and night shift allowance.

Second, non-economic remuneration.

1 training and development

Training and development is a very important way for enterprises to help employees reserve knowledge and ability to complete their existing work and future work. Its ultimate goal is to improve the overall performance of the organization, so it is also an inseparable and complementary method with performance pay management.

2. Promotion opportunities

Through the observation of performance pay at a certain stage, we can see the positions, completion and job matching of candidates, which provides an objective evaluation for enterprises to select reserve cadres and outstanding technical experts, and is conducive to the development of organizations and the improvement of efficiency.

3. Inner satisfaction

The growth of enterprise employees also needs sensory satisfaction such as humanistic care, sense of accomplishment, sense of challenge and realization of personal value. Wages are rigid, easy to rise and difficult to fall. Even if the total amount of salary remains the same, the rigidity of the overall salary of the enterprise will be different because of the different proportion, and the impact on the financial burden of the enterprise will be different. Therefore, in enterprise management, the rationality of performance pay design is very important. The core of performance pay is that the performance level of employees changes with the performance of individuals, teams or organizations. In performance design, the idea of fixing salary by post can be adopted to realize the correlation between salary and post value. First of all, it is necessary to carry out position analysis, and describe the size, complexity, freedom, rights and responsibilities of different positions through position descriptions, so that employees can understand the difficulty of work and classify the different levels of performance pay. In addition, through a series of communication methods such as employee heart-to-heart talk and organizational analysis, the design method of reasonable performance pay is sought. After completing the established work every month, the professionals will grade the performance, and the employees' performance will be reflected quantitatively and intuitively, and the corresponding salary will be paid. The advantages of the performance pay system are mainly reflected in the following aspects:

(1) has clear guidelines.

In performance compensation management, the specific indicators in the performance appraisal table, such as project, planned value, target value, authority and proportion, clearly show the types and results of work that enterprises need employees to complete. Employees can know the level of work they have completed, so that they can know fairly well and have evidence-based assessment.

(2) Effective incentives.

Employees get corresponding achievements and returns through their own efforts. In the same working group or the same post, when the performance appraisal results of different employees show a certain gradient, the comparison will become very obvious. By rewarding advanced assessment and backward economic punishment, it will also effectively motivate employees' enthusiasm.

(3) Save the operating costs of enterprises.

The essence of performance pay is a kind of floating pay, which can alleviate the pressure of fixed costs of enterprises to a certain extent, and enterprises can flexibly adjust the payment level of pay. The key to the implementation of performance salary management is to make a reasonable performance evaluation, that is, to formulate a performance appraisal form. In the process of formulating the performance appraisal form, enterprise managers should follow the following principles:

(1) principle of fairness

The performance appraisal forms of personnel in the same position are consistent, and there should be no unfair phenomenon of different indicators in the same position. Employees' assessment indicators are fair and just, and it is best to announce them in advance, so that individuals can know their own assessment indicators.

(2) the principle of reliability

The evaluation data source of the monthly performance appraisal form should be true, reliable and objective, which can withstand the inquiries and questions of employees themselves and ensure the reliability of indicators.

(3) the principle of finiteness

The bonus setting in performance compensation management accounts for a certain proportion, but it cannot be too low or too high. The proportion of bonus in salary design is too low to play the original incentive role, and employees will become dispensable if they don't pay attention to it; If the proportion of bonus in salary design is too high, it will bring employees fear of difficulties, treat their work negatively and lose the role of performance pay. The purpose of salary system design is to attract and retain employees and motivate employees to realize the expected behavior of the organization. An excellent performance pay system can not only summarize the performance of employees, departments or enterprises for a period of time, but also effectively communicate with superiors and subordinates and promote the transmission of information. The management result of performance pay is also directly related to some important human resource management decisions, such as the change of employees' positions, human resource planning, and the choice of training opportunities. Therefore, it can be said that salary performance occupies a very important proportion in modern enterprise management, and managers need to attach great importance to it.

refer to

[1] Ren Dongguang. Reform and innovation of salary management system [J]. Jiangsu Business Theory, 2007, (30): 144- 145.

[2] Xiang Kaibiao. Salary system design and performance appraisal practice [M]. Tsinghua University Publishing House, 20 14.