Comprehensive interpretation of the key points, common problems and countermeasures in the design and implementation of the compensation system
Since it is related to everyone's vital interests, the compensation system has always been the most sensitive topic in enterprise human resource management, and it is also a difficult point. No matter what kind of company you are in, every change in salary often triggers a shock, and even a salary increase may not be able to satisfy most people. Therefore, many companies are reluctant to adjust pay easily unless the change is a last resort and imperative. But in fact, the design and implementation of the compensation system is not very difficult. The key is to be able to see many details clearly, and many links cannot be missed. The key points, common problems and countermeasures in the design and implementation of the compensation system are shared with you below.
Comprehensive interpretation of the key points, common problems and countermeasures in the design and implementation of the compensation system
- Design of salary system
Before starting the design of the salary system, we must first design the framework ideas, and communicate the design ideas with the middle and senior management of the company to ensure that they can be generally recognized.
When thinking about the framework of the compensation system, first analyze the information after the design and research, including the description of the current situation, the elaboration of the problem, and the main ideas of future solutions. Future solutions can be developed in terms of salary structure, proportion of each part, payment method of each part, salary adjustment range, total control, adjustment mechanism, non-material salary, medium and long-term salary, salary gap, etc. The original and reasonable practices of the enterprise that are generally recognized by the employees should be retained, and the ideas and methods for solving the key problems of the enterprise should be emphasized.
After reaching a basic agreement with the middle and senior management on the salary design ideas, the design of the salary system documents can be carried out. The salary system documents include two types, one is the salary management system, the other is the specific salary payment method, and the other is the salary system. Class systems can be designed individually or in combination. The salary management system stipulates the scope of application of the salary system, salary design principles, job sequence division, salary structure, brief description of each part, salary standard, salary adjustment regulations, salary payment under special circumstances, etc. Salary payment methods can be designed separately for different groups, such as salary payment methods for sales personnel, and salary payment methods for R&D personnel. The method stipulates the specific accounting methods, calculation formulas and payment methods for each part of wages, bonuses, allowances and benefits. No matter what kind of document, the language should be concise and clear, and professional terminology should be avoided as much as possible to facilitate the understanding of employees.
When designing compensation, some key issues must be paid attention to:
Pay special attention to laws and regulations in terms of salary structure, standards, and payment methods, and understand local minimum wage standards, social security bases, and housing provident fund policies in advance.
The design should reflect the commonality and individuality of different groups of salary, such as the different proportions of the income of sales staff and administrative staff, and the different bonus issuance methods for production staff and R&D staff.
When designing, focus on total amount control, and associate the total amount of salary with the indicators that best reflect the company's human resource management efficiency and are the easiest to calculate, such as output, sales, income, profit, etc.
The design should consider the practice and connect with the existing policies of the enterprise, including leave processing, salary determination methods for new employees, post adjustment, transfer, special policies for talents, special rewards, etc. The policies that have formed a practice and are generally accepted by everyone are not. It needs to be adjusted. If there are no corresponding regulations or conventions, it is necessary to make detailed regulations on how wages are paid under the above circumstances.
Special attention should be paid to non-wage cash income such as subsidies and benefits in the design.
Comprehensive interpretation of the key points, common problems and countermeasures in the design and implementation of the compensation system
- Implementation of the remuneration system
Before implementing the salary system, the concept and content of the salary system must be trained and publicized first. Institutional training should adopt a centralized training method to strengthen the seriousness of the system.
When conducting institutional training, the concepts and principles of salary design need to be explained in detail so that employees can understand the design ideas. At the same time, in order to facilitate employees to understand the content of the new system, the salary structure, salary system, payment method, etc. can be compared with the original system.
Before the official release of the system, it is best to publicize the system text, solicit opinions from managers and employees at all levels, revise and improve it based on feedback, and then formally issue the document for implementation.
In the first month of implementation, when paying wages, the human resources department should track the implementation situation, and the key tracking items include general repercussions after the payment, key personnel's opinions and suggestions, whether there are appeals, etc. For those who ask questions, they must give feedback in a timely manner, and need to make on-site explanations for explanations. It is recommended to adjust the reasons for on-site consultation of the post level or personal level, and promise to reflect it to the company. At the same time, the problems raised are summarized, and targeted solutions must be proposed for common problems.
After the implementation of the new salary system, it does not mean that everything is going well for the enterprise. The price of the talent market continues to rise, and the labor cost of the enterprise continues to rise. Regardless of whether the company's new compensation system is implemented at the beginning of the year or in the middle of the year, it is necessary to track the implementation by the end of the year, and make recommendations to the company on whether to go up or not based on external market compensation surveys. Usually, when an enterprise implements the new system in the middle of the year, if the adjustment range is relatively large at that time, and there is no significant fluctuation of market salary in the current year, it is recommended not to increase the adjustment in the current year. When the salary increase in the market is relatively large, it is first necessary to judge whether the enterprise meets the conditions for salary adjustment according to the salary adjustment clauses in the salary system. If the conditions are met, a proposal on the proportion of salary increase will be given according to the company's benefits and future expectations of the market.
During the implementation of the salary system, the human resources department may encounter various problems. Faced with these problems, the human resources department must take and solve them seriously, otherwise it will easily cause dissatisfaction among employees and affect the effect of the implementation of the salary system. :
Comprehensive interpretation of the key points, common problems and countermeasures in the design and implementation of the compensation system
- Employees are dissatisfied with personal compensation
This is the most common problem. First of all, we must explain the design concept and the principles and methods of personal specific positioning in detail to the employees, so as to obtain the understanding of the employees. If it is a question of job level, a detailed analysis is required by the employee, preferably a written document, and after the approval of the leader in charge, the human resources department will give a suggestion on whether to adjust through the analysis. If it is a personal positioning problem, the employee's opinions and information such as the employee's basic situation, daily performance, and performance records can be fed back to the senior management, and the senior management can judge whether to make adjustments.
- The actual salary after the assessment is low
The formation of this situation may be due to the high goals of the enterprise, which makes it difficult for employees to get full performance wages, or the designed bonuses are useless, and the income of employees rises and falls. In this case, it is possible to negotiate with the top management, either to grade the corporate goals, set a higher performance performance standard for the original high goals, or appropriately reduce the floating ratio.
- The actual salary after the assessment is too high
The formation of this situation may be due to the low goals of the enterprise or the lack of rigorous assessment, resulting in a high proportion of employees' performance-based pay, easy access to bonuses, and excessive growth of employees' actual income. At this time, it is possible to suggest to the top management to increase the target, or to adjust the evaluation standards, and strictly implement the evaluation standards and evaluation procedures; it is also possible to reduce the performance cashing coefficient, increase the bonus cashing conditions, or appropriately reduce the floating ratio.
The design and implementation of the salary system are related to the actual interests of the employees of the enterprise, so it is a very important part of the human resources management of the enterprise. During the operation process of salary adjustment or reform, attention must be paid to various details, and the work should be done finely and carefully. In-depth, in order to obtain the understanding and recognition of managers and employees at all levels of the enterprise.