As a senior HR, do you know what are the common compensation methods?
There are various modes of compensation, and different positions in an enterprise generally adopt different compensation modes.
01
piece rate system
It is generally applicable to employees in the manufacturing industry. The core of the piece rate wage is the standard working hours and the evaluation of the type of work. Generally speaking, for field workers in the manufacturing industry, we recommend that those who can count pieces are not timed, and those that can be timed are not fixed.
02
post salary system
It is generally applicable to the positions of administration, human resources, finance, procurement, technology and other categories of enterprises. Through job evaluation, we can determine the contribution to the enterprise and formulate employee compensation. The core is to reflect the company's compensation strategy, such as leading compensation, That is, in regions and industries, the salary is positioned at the leading, following-type, and lagging-type salary.
03
Commission salary system
It is generally suitable for sales positions, with high fixed and low commission, suitable for enterprises with stable sales, low fixed and high commission, suitable for enterprises in the market expansion period, with pure commission and fixed type.
04
annual salary system
It is generally applicable to the senior executives and core employees of the enterprise. Through the annual salary system, the employees can be locked in to develop together with the enterprise. In the general annual salary system, a monthly payment standard will be formulated, and the payment standard will be issued at the end of the year. The monthly standard is usually between 50-60% of the annual salary.
05
fixed wage system
It is generally applicable to workers who are on-the-job, and is managed through incentives and punishments. For example, security and cleaning staff. The fixed wage level refers to other local enterprises.
06
Performance pay system for all staff
This is a new type of compensation model that directly links all employees with the company's performance. For example, the average salary of workers (store sales personnel) is used as the basis to measure the price of various positions. For example, the average salary of workers is the coefficient of 1 corresponding to the salary, and the salary coefficient of the inspector is 1.3, that is, the salary of the inspector is the location 1.3 times the average salary of team workers. For example, the Human Resources Department is assigned a coefficient of 6, that is, the total salary of the Human Resources Department is 6 times the average salary of workers, and then it is distributed internally by the Human Resources Department, and so on.