The core steps of salary system design are eight steps

Mondo Social Updated on 2024-02-01

Some people say that the pay is not good, and the employees have to run. Others say that wages are a health factor and have no incentive effect. I think that a good salary system must be a comprehensive connection between selection, education, employment and retentionThe salary system must be an effective power system and ability system with the recruitment system, promotion system, performance system and training system.

Many small and medium-sized enterprises do not have standards for wages and bonuses, and they all depend on the mood of the boss, which leads to employees doing things, not to study how to do things well, but to study how to please leaders and bosses.

We say that the best salary must be the 345 salary system, so what is the 345 salary? In fact, many large manufacturers are using 345 salary, such as Huawei and AlibabaPay the wages of 4 people to 3 people and create the value of 5 people, the core, that isReduce costs and increase efficiencyOnly by focusing on the improvement of human efficiency can an enterprise have a future.

What I will share today is the core step of the design of the compensation system, which I call itThe salary system is designed in eight stepsOnly by taking these eight steps well, the salary system we designed can be scientific and practical.

The first step in the design of the salary system is job analysis and sequence division.

Job analysis is the most basic work of human resource management, and it is also the basis and premise of salary management. The job analysis methods we often use include observation method, interview method, questionnaire method, work practice analysis method, and key event analysis method. There are ten principles for job design: first, the job objectives should be consistent with the department's functions; Second, the basis for job division should be reasonable; Third, the post work structure should be reasonable; Fourth, the workload of the post is saturated and reasonably distributed; Fifth, the number of jobs should be moderate; Sixth, follow the principle of internal control; Seventh, follow the principle of compatibility; Eighth, follow the principle of incentives; Ninth, follow the principle of specialization and division of labor; Tenth, follow the principles of safety management.

The purpose of job sequence division is to facilitate job classification management, optimize selection criteria, facilitate the establishment of talent ability model, establish targeted incentives and directional development of personnel. The division of job sequence should follow six principles: the principle of strategic orientation, the principle of functional concentration, the principle of value orientation, the principle of highlighting the core, the principle of forward-looking, and the principle of moderation.

The second step in the design of the salary system is the evaluation of the value of the position.

Job value evaluation is a very important technical work in the design of the salary system, and the methods commonly used include the post ranking method, the job classification method, the factor comparison method, and the point method (factor scoring method).

When doing job value evaluation, we must follow the principle of "three forgets and three memories", which is to forget the person in the post, forget the special circumstances of the post, and forget the absolute value of the post. The three notes are to remember that the right post is not the right person, remember to consider the usual situation of the position, and remember to evaluate the relative value.

The third step of compensation system design is salary investigation and analysis.

The salary survey is to provide enterprises with the basis for adjusting the salary level of employees, which is conducive to controlling the new trends and changes in salary management, effectively controlling labor costs, and enhancing the competitiveness of enterprises. The general methods of investigation include checking the salary survey report published by ZF, entrusting a professional research company, learning from the company's mobile personnel, questionnaire survey, etc.

The analysis of the current situation of remuneration is divided into internal fairness analysis and external competition analysis. Internal fairness analysis is to analyze whether the value difference between different positions, whether the ability difference of employees in the same position is reflected in the salary, whether the performance difference of employees in the same position is reflected in the salary, and whether the salary adjustment procedure is fair and just. External fairness analysis, mainly by region, industry, sequence and overall analysis.

The fourth step of compensation system design is salary strategy and level design.

Enterprises are at different stages of development and need different talents, and the compensation strategies adopted are different. Compensation strategies generally include compensation level strategies, which are divided into leading, following, lagging and hybrid. Salary incentive strategies are different for different groups. Compensation structure strategy, different groups adopt different compensation structures.

The fifth step of salary system design is the design of salary structure.

The compensation structure generally consists of fixed income, variable income, and benefits. In the design of the salary structure, the common problems are patching the salary, and the boss sending small red envelopes; There is no upper limit on the salary of seniority, which becomes a burden on the enterprise; In addition to the salary, red envelopes will be given. The fixed income is based on the job functions and competencies of the incumbent, including post salary, annual merit bonus, cash allowance, etc. Variable income is a bonus based on the performance of the company, department and individual, including performance bonuses, sales commissions, piecework wages, long-term incentives and contribution incentives.

Regarding the fixed and floating ratio of salary, fixed salary and performance salary, we suggest that the fixed floating ratio should be in line with the lower the level, the larger the fixed ratio, so as to reflect the low level of creativity and play a role in stabilizing people's minds.

The sixth step of compensation system design is salary bandwidth design.

Compared with the traditional hierarchical pay model, broadband pay is based on the following assumptions: first, the innovation and contribution of lower-level employees may be higher than that of higher-level employees; second, to adapt to the requirements of flat development of organizational structure; Third, increase the guidance for the improvement of employees' personal ability rather than the improvement of grades; Fourth, encourage cross-level development of employees.

The design steps of the salary scale standard table, first, determine the salary scale, classify according to the score of the post value assessment, the number of posts is more, the post value is too different, it needs to be divided into two levels, and the post level determines the salary scale. Second, a fitting regression analysis was performed on the market level and the actual level. Third, according to the market salary level and the actual salary level, a comparative ratio is formed, and the salary position is determined according to the comparison ratio. Fourth, determine the compensation strategy, compare the different quantiles of the market with the actual level, and take into account the total salary. Fifth, determine the salary level. Sixth, according to the key values of broadband design, the standard scale of the pay scale will be formed.

The seventh step in the design of the compensation system is the calculation and implementation of the salary

When the new salary structure comes out, we have to do a salary package calculation. Salary arbitrage is to set the employee's salary into the new salary structure according to certain rules, according to the position level and salary level of each position, and repeatedly calculate the salary data to determine the final arbitrage decision. The common methods of salary arbitrage are: first, without considering the employee's personal historical factors, according to the position and existing income level. Second, choose one of the employee's historical factors for the set. Third, select the most advantageous personal historical factors of the employee for reform. Fourth, comprehensively consider the historical differences of employees to implement the reform.

Salary reform and implementation, often encountered problems are:

First, the problem of high staffing. The solution is to freeze their salaries and let them gradually align with the designed salary, or promote to higher positions, provided that they are matched.

Second, the problem of low allocation of personnel. The way to liberate is to run a small fast run and match the design salary as soon as possible.

Third, the switch between the old and new systems should not be too blunt.

Fourth, consider whether the salary reform will be implemented as a whole or by sector.

The eighth step of salary system design, dynamic salary management.

Remuneration must be subject to change according to internal and external circumstances. Salary must be linked with the recruitment system, performance system, promotion system, and training system, and do a good job in the interface between salary and other human resources management systems. At the same time, it is necessary to compile a good salary management system, clarify the salary control mode and salary budget method, and control the salary cost of the enterprise.

The eight steps of salary system design are the core steps of our salary system design. Enterprises should determine the starting pointAbility, position, performance, marketThe concept of paying salaries. The scientific and reasonable salary system is also a sword of enterprise management, which fully mobilizes the enthusiasm of employees, gives full play to the incentive role of salary, and becomes an effective management tool and means for enterprise managers, so that salary is no longer "worried".

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