Accurately grasp the problems existing in enterprises, grasp the principle of "stability, decentralization, reconciliation and harmony" for different groups, and carry out effective system innovation based on the current situation of enterprises, so as to grasp the key points, be impartial, and achieve twice the result with half the effort.
State-owned enterprises are a special group: on the one hand, as the main force of the national economy of socialist countries, state-owned enterprises bear important and key responsibilities in economic development and social stability; On the other hand, because the state has granted a large amount of capital, resources, and management power to state-owned enterprises, it is determined that the behavior of this group is not a complete market behavior in the vast majority of cases. To a certain extent, state-owned enterprises have the dual characteristics of enterprises and public organizations, and this is the basic point and starting point for us to think about the issue of salary reform in state-owned enterprises.
Eight major problems in the salary management of state-owned enterprises
There are currently eight prominent problems in the salary management of state-owned enterprises:
First, the basis for salary payment is not clear. For many years, salaries in state-owned enterprises have been based mainly on administrative rank, taking into account seniority; With the concept of "respecting knowledge and talents" proposed, professional titles and academic qualifications have gradually become distribution factors; The intensification of competition has led most companies to start using performance as one of the distribution factors. However, few companies are able and willing to explain what exactly is the basis for paying their employees. Many companies will answer vaguely; According to the value created for the enterprise, according to the contribution made to the enterprise, and what is the value and how to evaluate the contribution to the enterprise is not clear. The basis for the payment of modern salary theory is very clear, that is, to pay for the value of the post, to pay for the ability, to pay for the performance, and really to put this theory out, it may be difficult for many people to accept, it may hurt the feelings of old employees, and it may affect the stability of the enterprise, which is why many state-owned enterprises can not clearly show the salary proposition.
Second, the channel is single, and the hierarchical concept dominates the distribution. Although most state-owned enterprises claim to have taken into account various factors such as rank, seniority, job title, education, and performance in the distribution of salaries, which seems to be very scientific, a closer examination will show that rank is still the dominant factor in distribution. Because the basic salary and benefits are linked to the level, the base of the performance salary is often divided according to the level of the position. In other words, if a "section-level" cadre becomes a manager, the result is higher than that of a "department-level" cadre, and this reality is difficult for most SOE cadres to accept. For the vast majority of state-owned enterprises, the improved grade wage system is still the mainstream. If you want to earn a high income, you have to climb higher up the pyramid, and other forms of access, or lack of planning, or mere formality, are not mainstream.
Third, the internal level gap is unreasonable. In order to maintain unity and avoid conflicts, most state-owned enterprises still adopt a small hierarchical gap, which is reflected in the fixed salary, but also in the distribution of performance bonuses, for example, the distribution of year-end bonuses in an enterprise adopts the coefficient method, and the highest coefficient for all managers and employees is 13, the lowest is 1, such a gap obviously does not reflect the difference in the value of the post. At the same time, in the process of salary growth, most state-owned enterprises adopt the "step by step" approach, which further exacerbates the flattening trend of salary structure, resulting in the result that the local income level of grassroots positions such as ordinary employees and drivers in most state-owned enterprises is much higher than the average salary level, while the income of the middle level of enterprises, including some high-level employees, is significantly lower in the industry. In recent years, the management of executive compensation in state-owned enterprises has been loosened, and the phenomenon of small layer differences is now mainly reflected between the middle level and the grassroots level.
Fourth, the degree of salary marketization is insufficient. The lack of marketization of the salary of state-owned enterprises is first reflected in the relatively closed salary system adopted by most state-owned enterprises, especially large state-owned enterprises, and the enterprises adjust their salaries according to their own rhythm and determine the salary level according to their own resources, which leads to an imbalance between the salary level of the enterprise and the average level of the society. In terms of different levels and business sequences within the enterprise, some positions are 3 4 times the average social wage, while others are less than half. It should be said that the average salary level of the society represents the balance point of supply and demand in the labor market, and enterprises can determine the salary strategy according to their own reality and move around the balance point; However, the huge deviation either shows that labor costs are wasted, or that enterprises undervalue workers, and this situation is very common in our state-owned enterprises, and this contradiction is increasingly exacerbated by the annual increase and only increase of the salary system.
Fifth, the salary and welfare subjects are complex and lack of overall planning. In order to balance the relationship between all aspects and reflect the importance attached to the forces of all aspects, the salary subjects of state-owned enterprises can be described as numerous, and some of them have more than 40 kinds of salary and welfare subjects, some of which are promulgated by the state, some are promulgated by the industry, and some are those that existed before the reorganization of enterprises. Under such a compensation model, it is difficult to clearly distinguish which part of the compensation is to motivate what kind of behavior, and employees will not pay attention to the distinction and orientation of each part. The management of a considerable number of state-owned enterprises believes that the remuneration of state-owned enterprises is not as flexible as that of other ownership economies, and that the benefits are better and that there are more things to eat in a big pot, which is actually a supplement to the salary. However, they may not have imagined that due to the large increase in non-flexible pay and welfare subjects, the incentive effectiveness of employees is declining, and the rigid cost of enterprises is increasing.
Sixth, there are multiple forms of employment, and identity affects income. In recent years, some state-owned enterprises have realized the problem of their own labor costs are too high, and more flexible employment forms such as employment system and labor dispatch system are adopted, and the market-level salary standards are used for the above-mentioned personnel, which has alleviated the pressure on labor costs to a certain extent, but different salaried groups have also been formed within the enterprise, commonly known as "the old way for the old man, the new way for the new man". In the current situation, the "newcomers" are already the de facto business backbones in some enterprises, while the "old people" sit on the advantage of their status, but they have an income several times higher than that of the newcomers. With the promulgation of the new "Labor Contract Law", if new and old employees are not given fair development channels and unified salary standards, this unreasonable situation will face severe challenges from the perspective of productivity and legitimacy. However, for some companies, this group of employees has a large number of employees, huge salary differences, and it is difficult to merge.
Seventh, there is a lack of scientific and systematic performance appraisal as a supporting tool. At present, almost all state-owned enterprises have implemented performance appraisal, and the assessment situation is roughly divided into three types: the first type of enterprises mainly implement the assessment of financial objectives, assess the financial objectives of business departments, and take the average number of business departments for other departments, and use 360-degree evaluation for employees, which accounts for about 30 40% of the total number of state-owned enterprises; The second type of enterprises have introduced a more strict and standardized performance appraisal system and process, and implemented the strategic performance appraisal of all employees, and such state-owned enterprises account for about 10 20; The assessment of the third type of enterprise is basically a formality, half a year or the end of the year simply fill in the form to evaluate, most enterprises do not even know to determine the goal before the start of the assessment cycle, and insist that only quarterly, half a year at the end of the form is called "assessment", this kind of enterprises account for about 40 50. In such a situation, it is often the management team that discusses and determines what the employee's appraisal coefficient should be. 9 or 11. Specific to the department or grassroots, the situation of taking turns to sit in the village or egalitarianism is more common, and the results of performance appraisal can not fully characterize the contribution and performance of employees, and performance wages naturally cannot play an effective incentive role.
Eighth, salary control is not in place. As mentioned above, since the reform and opening up, in order to adapt to the changes in the market situation, state-owned enterprises must respond, but because the requirements of large state-owned enterprises themselves are stricter, and the requirements for subordinate enterprises are the group has the final say, relatively relaxed, which leads to the subordinate enterprises, branches, and regional subsidiaries of state-owned enterprise groups to fight for their own battles, respectively, the design and adjustment of salaries, over the years, their respective levels and structures are quite different, and some enterprises have even opened up independent salaries, commonly known as " Small treasury", for the grouped state-owned enterprises, it is difficult to make a systematic salary regulation, because of the wide range of people affected, the encounter is also relatively strong. Under such a premise, how to adjust the unreasonable gap between the various units within the group enterprises, and further carry out comprehensive and standardized management of the salary management model and growth mechanism of each subordinate enterprise under the premise of "dual control" is also a difficult problem facing many large state-owned enterprises.
Compensation strategies for four types of personnel
The above phenomenon determines that there are many problems that need to be considered in the salary reform of state-owned enterprises, and it is difficult to deal with many problems, and many problems are often discussed one by one, which not only requires management technology and methods, but also needs to solve problems creatively. On the basis of the practical research on the salary reform of dozens of state-owned enterprises of different sizes and industries, the author believes that the key to the salary reform of state-owned enterprises is to scientifically plan the salary strategies of the following four types of people.
1. Senior management personnel
The senior executives of state-owned enterprises include the chairman, general manager, deputy general manager, and three chief engineers. Generally speaking, senior executives are represented by the chairman or general manager and accept the remuneration management of the superior state-owned asset management department, and other senior executives take a certain percentage of the annual salary of the chairman and general manager. From the perspective of considering the remuneration balance of a certain group (e.g., all senior executives of state-owned enterprises in a city or district), this quota often cannot take into account the characteristics of the industry and the enterprise, for example, the executive remuneration of state-owned real estate enterprises is often lower than the income of managers in other enterprise departments; Then there is the difference that can not fully reflect the operating effect, there is no particularly huge difference between the executives of the enterprises with a loss of 10 million and the executives of the enterprises with a profit of 10 million, which has led to the psychological imbalance of the executives of some state-owned enterprises with good operating efficiency and fast development, and there are problems such as consumption and 59 years old. Based on the above considerations, since 2006, state-owned listed companies have taken the lead in starting the equity incentive pilot, however, in terms of the pilot situation, a series of new problems have emerged, such as: executive compensation growth is too fast, and the proportion of the grassroots is unbalanced, and so on, for this reason, the State-owned Assets Supervision and Administration Commission, the Ministry of Finance once again issued the "Notice on Regulating the Implementation of the Equity Incentive System of State-Controlled Listed Companies" to further standardize the specific operation of the equity incentive of state-owned enterprise executives.
In terms of executive compensation, we should insist on guiding enterprises to pay attention to the word "stability". It is embodied in:
Pay attention to environmental harmony. When determining the level of executive compensation, it is necessary to comprehensively consider various factors such as enterprise efficiency, employee income level, income level of local state-owned enterprise executives, income level of executives of comparable enterprises in the same industry, and actual income level of local civil servants, and promote it steadily, so as to avoid simply looking at the industry, the enterprise, and themselves, which will lead to the adverse impact of the reform on future work.
Structural adjustments. Overall, the trend of executive compensation reform in the future is to increase the proportion of variable income such as annual performance salary, year-end bonus, achievement bonus, options, restrictive **, etc., which is also a common practice in the world; At the same time, the increment is made in the variable part, which is more reasonable, and also reflects the principle of sharing risks and achievements with enterprises.
Standardize performance appraisal: executive incentives must have a matching, relatively rigid assessment system, SASAC in equity incentives stipulates that there must be indicators that reflect shareholder returns and corporate value creation, indicators that reflect the company's profitability and market value, and indicators that reflect the quality of corporate earnings, and the above three types of performance appraisal indicators are at least one in principle. Rigid indicators are not only the requirements for executives, but also the basis for executives to be paid safely after achieving their goals. With the above principles, the specific indicators and standard settings are purely technical problems, which are relatively easy to understand and solve.
2. The person in charge of the business unit
The vast majority of state-owned enterprises have subsidiaries, branches, sub-centers, marketing departments, engineering departments, and offices in different regions, engaged in different businesses, and different scales. How to design the remuneration of the heads of the above-mentioned institutions or the leadership team is the highlight of the salary design of state-owned enterprises. In this regard, our advice is: put.
At this level, our advice is to "put".
Result-oriented: this part of the personnel are engaged in specific business work, especially for the management of the group company, the business all rely on the above-mentioned business units to complete, therefore, for the salary design of the above-mentioned personnel, mainly should be result-oriented, with business, profit, market share, growth, etc. as key performance indicators, and the main component of the salary is closely linked, at the same time, appropriate consideration of talent training, management improvement and other soft indicators.
Industry integration: Since these operators are in the specific business line and various types of enterprises to compete for the market and complete the performance, therefore, the salary design of these operators should take into account the industry level as much as possible, especially in the completely competitive industry, so as to effectively gather talents and gradually establish a competitive advantage. For group companies, there is also this authority and operating space.
Reasonable determination of the difference coefficient: due to the different businesses of different enterprises, different markets, and different stages of development, a simple one-size-fits-all is certainly unreasonable, which requires the determination of a distribution coefficient, taking into account factors such as regional consumption level and business difficulty, which can be operated, but should not be too complicated. At the same time, it is also necessary to consider the difficulty of not creating the mobility of ** personnel because of this.
3. Management and professionals at all levels
For state-owned enterprises, this part of the personnel includes middle and grass-roots managers, staff with management responsibilities, professional and technical personnel, etc., this part of the personnel is the "waist" of the pyramid of state-owned enterprises, is an important part of supporting the operation of state-owned enterprises, whether to deal with the salary of this part of the staff, directly related to the operational efficiency and vitality of the enterprise.
For this group, our basic strategy in the salary reform is "adjustment".
Gradually promote the transformation from identity management to post management: this part of the personnel used to mainly use the grade salary system, according to the status level to determine the salary level, and the basic basis of the modern salary system is the value of the post, which is two different value standards, there is a connection but also a difference, a typical example is that the person in charge of different departments at the same department level, because of different positions, the salary standard is also different. In the actual reform, from identity management to post management can not be simply one-size-fits-all, but should be gradual and gradual, but the direction of "post-based salary, post-change salary" must be clear.
Widening a reasonable gap through job value evaluation: From a longitudinal point of view, the gap between the grassroots level in traditional state-owned enterprises is relatively small, but the difference in responsibilities is very large, which is not in line with the principle of equal responsibilities and rights. In the design of the new salary system, the value of all positions should be evaluated, and the grade distance of different job levels should be determined based on the results of job evaluation. Of course, similar to the previous article, the reform in this area is not necessarily in place in one step, and the reasonable gap is 3 times, which turned out to be 12 times, this time it may be changed to 18 or 2 times, which needs to take into account the psychological acceptance of employees and the affordability of enterprise costs.
Open up a variety of career paths: For this part of the staff, the biggest problem is that they have to "climb the stairs", and the higher the stairs, the less the stairs, therefore, a considerable number of people stop at a certain level and can't go up, so they also become discouraged and lose enthusiasm for their work. In this regard, the most effective way is to open up a variety of career channels, establish non-administrative ladders and qualification standards, and effectively balance the incentive level of each channel, and guide the diversified and professional development of employees.
Fourth, grass-roots employees
Grass-roots employees are the "vast majority" of state-owned enterprises, and the salary reform of these employees has a large impact and a wide range of influences.
Pay attention to the harmony with the surrounding environment: Large-scale state-owned enterprises are often an important force supporting the economy, with a large number of employees and related personnel, and every move will have a greater impact on the local area.
Gradually realize the socialization of labor costs: The current situation of state-owned enterprises is that, due to historical reasons, there are often a number of employees with high labor costs, low labor productivity and vocational skills in some non-critical and alternative grass-roots positions. In the salary reform, it is necessary to consciously promote the socialization of the above-mentioned positions, introduce a competitive mechanism, or put forward high skill requirements for high-wage employees and guide them to transfer to high-level positions, so that the labor costs of the above-mentioned positions will gradually move closer to the social average.
Gradually reduce the income gap that comes with status. As mentioned above, there are so-called differences between regular workers, old employees, and temporary workers, hired workers, and outside the system in grass-roots positions in state-owned enterprises, and this difference is often reflected in the difference in salary several times, and the existence of this mechanism leads to the laziness of regular employees, and also makes the employees who are informal, working in the front line, capable and shouldering important missions unable to see hope, affecting their enthusiasm and initiative in work, and not in line with the legislative principles of the Labor Contract Law. Therefore, it is necessary to consciously and gradually close this gap in the salary reform (even in one step for companies with a small number of employees) until the gap is eliminated and equal pay for equal work is achieved in the full sense.
Criteria for salary reform in state-owned enterprises
The salary reform of state-owned enterprises is not only a redistribution of interests, but also a system change, and a revolution in the depths of the mind, which determines that this reform is of great significance, and of course, the road is also extremely difficult. Before and after the reform, many managers of state-owned enterprises were wondering, how to measure the success of our reforms? For this problem, we believe that we can evaluate it from the following four aspects, namely: scientificity, stability, efficiency, and growth.
The so-called scientificity refers to whether the reform can solve the outstanding contradictions in the past and win the support and recognition of the majority of cadres and employees, especially the backbone personnel; The so-called stability is whether the reform has caused fierce opposition from employees, or has produced obvious negative effects such as employee turnover; The so-called efficiency is whether the economic efficiency of the enterprise has improved after the reform; The so-called growth is whether the enterprise has made a breakthrough in the overall scale, key business and key work after the reform, and has obvious growth.
*: Organized online materials.
Huaheng Zhixin Review
In reality, there is indeed such a situation, the company has invested a lot in the salary reform, everyone has benefited but complained, the reform not only does not stimulate the vitality of employees, but brings new contradictions. Of course, there are also enterprises that do not spend much money, but the reform has achieved good results. Comparing different cases, it is not difficult to find that by accurately grasping the problems existing in enterprises, grasping the principle of "stability, decentralization, reconciliation and harmony" for different groups, and carrying out effective institutional innovation based on the current situation of enterprises, we can grasp the key points, be impartial, achieve twice the result with half the effort, and promote the substantial improvement of the productivity of state-owned enterprises.
After long-term research, Huaheng Zhixin has put forward the following countermeasures for the salary reform of state-owned enterprises, which are for reference only:
1. Establish a salary system based on the post salary system
The so-called post salary system is based on an objective evaluation of the value of the position itself, and then based on the results of this evaluation, the incumbent is given a salary equivalent to the value of the position.
2. Provide competitive salary
When determining the level of compensation, companies need to refer to the wage level of the external labor market. After analyzing the salary data of the same industry, different salary levels are selected according to the company's compensation strategy. In terms of compensation strategy, enterprises can choose to lead the strategy and follow the strategy.
3. Establish a salary system that attaches equal importance to technology and management and multiple development channels
Under the design of the salary system that attaches equal importance to technology and management and multiple development channels, employees can get corresponding remuneration as long as they pay attention to the development of those technologies and abilities required by the enterprise. In this way, employees do not need to worry about job promotion and other issues for the sake of salary growth, and convey a performance- and ability-oriented corporate culture to employees to guide cooperation and knowledge sharing among employees, so as to cultivate a positive team performance culture, thereby greatly enhancing the cohesion and competitiveness of the enterprise.
4. Implement the annual salary system and equity incentive mechanism based on EVA
Through the implementation of the annual salary system and equity incentive mechanism based on EVA, the establishment of a benefit-sharing mechanism that links the long-term development of the enterprise with the interests of the operator, solves the problem of the absence of owners of state-owned enterprises, enables the enterprise operators to think about the development of the enterprise with the mentality of shareholders, and truly establishes the incentive mechanism and restraint mechanism for enterprise leaders to take risks and enjoy benefits, so as to ensure the preservation and appreciation of state-owned assets.