Step 1: Job Analysis
Bit analysis is the basis of determining salary. Combined with the company's business objectives, the company's management should clarify the functions and post relationships of various departments on the basis of business analysis and personnel analysis, and the human resources department and the heads of various departments should cooperate in compiling job descriptions.
Step 2: Job evaluation
Job evaluation focuses on solving the inherent fairness of salary. It has two purposes: one is to compare the relative importance of each position in the enterprise and get the position ranking sequence; The second is to establish a unified post evaluation standard for salary survey, so as to eliminate the difference in job difficulty caused by different job names among different companies, or even if the job names are the same, the actual job requirements and work contents are different, so as to compare different jobs and lay the foundation for ensuring the fairness of wages. It is the natural result of job analysis and also based on job description.
There are many methods of job evaluation. More complicated and scientific is the scoring comparison method. It must first determine the evaluation elements related to salary distribution and define different weights and scores for these elements. The more popular models in the world, such as Haiyi model and CRG model, all adopt the method of quantitative evaluation of position value, and comprehensively evaluate the position from three major factors and several sub-factors. Different consulting companies have different definitions of evaluation factors and corresponding scores.
A scientific job evaluation system is to get the salary grade through comprehensive evaluation of various factors, rather than simply linking with the job, which is helpful to solve the problem of grade difference between officials and experts. For example, the senior engineer of R&D is not necessarily lower than the manager of R&D technology department. The former focuses on technical difficulty and innovation ability, while the latter focuses on management difficulty and comprehensive ability, both of which have their own strengths.
Some positions in large enterprises are above 17, and most positions in small and medium-sized enterprises are 1 1~ 15. There is a trend in the world that demotion is widening, that is, the position level in enterprises is gradually decreasing, and the wage gap is getting bigger and bigger.
Step 3: Pay survey
The salary survey focuses on solving the external competitiveness of salary. Enterprises need to refer to the wage level in the labor market when determining the wage level. The company can entrust a more professional consulting company to conduct this survey. Foreign companies tend to focus on American Chamber of Commerce, William Mercer, Watson Wyatt, Hewitt and Deloitte when choosing salary survey consulting companies. Some private salary survey institutions are emerging, but the sampling and working definition of survey data are not perfect enough.
The object of salary survey, it is best to choose a company that has a competitive relationship with itself or a similar company in the same industry, focusing on the direction of employee turnover and recruitment sources. The data of salary survey should include salary growth in the previous year, comparison of different salary structures, salary data of different positions and levels, bonus and welfare status, long-term incentive measures and future salary trend analysis.
Only by using the same standards for job evaluation and providing real salary data can the accuracy of salary survey be guaranteed. In newspapers and websites, you can often see articles such as xx post salary decryption, and the data mostly contain random sampling, so the accuracy is in doubt. Even the statistical data of the national labor department can not replace the salary survey as the basis for salary determination.
Due to the frequent turnover of personnel in the IT industry, we can use recruitment interviews and job-hopping opportunities to understand the salary level of competitors, but we should prevent generalizations.
The result of salary survey is a salary curve drawn according to survey data. On the position grade-salary grade coordinate map, first mark the points where all employees of the company under investigation are located; Then sort out the salary curve of each company. From this picture, we can intuitively reflect where the salary level of a company is compared with that of the same industry.
Step 4: Salary Positioning
After analyzing the salary data of the same industry, what needs to be done is to choose different salary levels according to the enterprise situation.
There are many factors that affect the company's salary level. From the outside of the company, national macro-economy, inflation, industry characteristics and industry competition, talent supply and even changes in foreign currency exchange rate all have different degrees of influence on salary positioning and wage growth. Within the company, profitability and ability to pay, as well as the quality requirements of personnel are the key factors to determine the salary level. Enterprise development stage, talent scarcity, recruitment difficulty, company's market brand and comprehensive strength are also important influencing factors.
Similar to product positioning, enterprises can choose leading strategy or following strategy in salary positioning. The leader in salary is not necessarily the company with the best brand, because the company with the best brand can find the best talents by virtue of its comprehensive advantages without spending the highest salary. It is often those rising stars with deep pockets who are most likely to adopt a high-paying strategy. Most of them are in the early stage of entrepreneurship or in the period of rapid rise. Investors are willing to buy time with money, hoping to quickly narrow the gap with giant companies by digging first-class talents.
There is a special term called 25P, 50P and 75P in the salary design, which means that if 100 companies (or positions) participate in the salary survey, the salary level will be sorted from low to high, representing 25th (low value), 50th (median value) and 75th (high value) respectively. A company adopting 75P strategy needs abundant financial resources, perfect management and excellent products. Because salary is rigid, it is almost impossible to reduce salary. Once the market prospect of the enterprise is not good, it will make it difficult for the enterprise to retain people.
Step 5: salary structure design
The concept of salary reflects the distribution concept of enterprises, that is, what principles are used to determine the salary of employees. Different companies have different views on salary. Some even formulated the Basic Law for Talents, and wrote the concept of salary into the Articles of Association. The salary measures of emerging enterprises are often different from those of mature bureaucratic enterprises. IT enterprises should pay special attention to the consistency of their distribution methods with their own industry characteristics and corporate culture.
Many multinational companies often consider three factors when determining the salary of personnel: first, the position level, second, skills and qualifications, and third, personal performance. Corresponding to the salary structure are post salary, skill salary and performance salary. Others consider the first two together as the basis for determining a person's basic salary.
Post salary is determined by post grade, which is the main determinant of a person's salary. Post salary is an interval, not a point. Enterprises can select some data from the salary survey as the midpoint of this interval, and then determine the upper and lower limits of each position level according to this midpoint. For example, in a job grade, the upper limit can be 20% higher than the midpoint and the lower limit can be 20% lower than the midpoint.
Different employees in the same position have different contributions to the company due to differences in skills, experience, resource possession, work efficiency and historical contribution. (Due to the limitations of performance appraisal, this contribution cannot be fully quantified), so the skill salary is different. Therefore, the basic salary of employees in the same grade may be different. As mentioned above, within the same position level, a range of upper and lower salary changes is set according to the midpoint of position salary to reflect the difference of skill salary. This increases the flexibility of salary changes, so that employees can gradually improve their salary level within the same post level with the improvement of skills and experience without changing their posts.
Performance pay is a reward for employees to achieve enterprise goals, that is, salary must be related to the economic value created by employees for the enterprise. Performance pay can be short-term, such as sales bonus, project floating bonus, annual bonus, or long-term, such as stock options. The determination of this part of salary is closely related to the company's performance appraisal system.
To sum up, to determine the salary of a position, it is necessary to evaluate the position; To determine the skill salary, it is necessary to evaluate the qualifications of personnel; To determine performance pay, it is necessary to evaluate work performance; To determine the company's overall salary level, it is necessary to evaluate the company's profitability and ability to pay. Every assessment needs a set of procedures and methods. Therefore, the design of salary system is a systematic project.
No matter how perfect the wage structure is, there will always be a few people whose wages are lower than the minimum or higher than the maximum. This can be corrected in the annual salary adjustment, such as increasing the salary increase ratio for the former and reducing or even adjusting the latter.
Step 6: Implement and modify the salary system.
When determining the salary adjustment ratio, it is necessary to accurately budget the overall salary level. At present, most enterprises are doing this calculation by the financial department. My suggestion is that, for the sake of accuracy, this calculation is best carried out by the human resources department at the same time. Because according to the practice of foreign companies, the financial department is not clear about the specific salary data and personnel changes. The human resources department needs to establish a salary account and design a better calculation method.
During the formulation and implementation of salary system, timely communication and necessary publicity or training are one of the factors to ensure the success of salary reform. Labor remuneration is essentially the result of weighing the cost of human resources and the needs of employees. There is no absolutely fair salary method in the world, only a salary system that employees are satisfied with. The human resources department can comprehensively introduce the basis of the company's salary setting by using questions and answers about the salary system, employee seminars, satisfaction surveys, internal publications and even BBS forums.
In order to ensure the applicability of the salary system, standardized companies have stipulated regular adjustment of salary.