The main responsibilities of the company's salary management department
Quality and role of salary manager
Salary management is a mysterious "job" in human resource management, and many human resource practitioners don't know what kind of ability and quality a salary manager should have.
Generally speaking, salary managers must first have a keen strategic vision and be good at observing the changes in the company's business template; Secondly, it has comprehensive logical thinking ability and can relate the details of each module of salary under a unified logic; Finally, you should have good mathematical operation ability. The mathematical operation ability here mainly refers to the logical understanding of mathematical knowledge, not some mathematical formulas or Excel operation ability.
(1) Sharp strategic vision. In the "three-legged" mode of human resource management, compensation managers generally do not directly deal with business departments, but we need to provide support for the overall management of the company. Therefore, an excellent salary manager must have a deep understanding of the company's business, understand the characteristics of the industry in which the company is located, understand the company's business trends, and know what kind of market competitive position the company is in. Michael Porter, a famous professor at Harvard Business School, explained the five competitive forces of enterprise competition in his book "Competitive Advantage", as shown in the figure.
Five forces of enterprise competition
Through this tool, salary managers can know who the company's external competitors are, and then understand their salary and welfare management trends.
In the new era of "internet plus", changes in the external market may exceed our expectations: potential competitors may come from completely cross-border enterprises. For example, a digital camera company that has been operating for many years was accidentally squeezed out of the market by high-pixel mobile phone products; Several companies have been competing in the instant noodle market for many years, but they didn't expect to be beaten out of the water by the fast-rising takeaway companies.
For our compensation managers, only by understanding our company's position in the market and the usual compensation and welfare measures of competitors can we adjust the competitive position of the company and constantly balance the relationship between compensation and welfare. From a macro point of view, it is to deal with the relationship between cash salary and non-cash welfare; From the microscopic point of view, it is to consider whether our basic salary and fixed floating ratio can effectively attract, motivate and retain core employees.
(2) Comprehensive logical thinking ability. The management of salary and benefits should be appropriately adjusted according to the company culture and organizational atmosphere. This requires salary managers to have comprehensive logical thinking ability and string all kinds of punctate salary management contents together. For example, when adjusting the annual salary level of employees, it is necessary to clarify what kind of employees are eligible to participate in the salary adjustment. Some companies will consider the number of working days of employees in the last working year (such as whether employees are new employees and their attendance). ). If the attendance of employees is taken into account, we should logically define how many days of employee absenteeism will affect work performance. Some companies stipulate that employees who have been absent for 60 working days or more in the previous year are considered to be likely to affect their work performance, so they cannot participate in the annual salary adjustment; Some companies stipulate that employees who have been absent for half a year or more in the previous year are regarded as unable to complete their work performance and cannot participate in the annual salary adjustment. These agreements are made according to the management practice of the company. No matter what kind of agreement, if the absence of existing employees is taken into account, the working hours of new employees should also be considered equally. If it is agreed that "employees who have been absent for more than half a year in the previous year cannot participate in the annual salary adjustment", then employees who have worked for less than half a year in the first year cannot participate in the annual salary adjustment. These two times should be logically unified.
(3) Good mathematical operation ability. In the impression of many people, including human resources practitioners, compensation and welfare managers should first be "sensitive" to numbers. In fact, in the field of human resource management, compensation personnel will be familiar with employees' personal salaries, and compensation managers will pay more attention to the overall salary and welfare layout of the company. The figures contacted by compensation managers are often more macro figures: involving the overall operating performance of the company, the overall bonus and salary ratio, and the proportion of labor costs to sales revenue. This sensitivity is different from that of specific wage payers. The mathematical operation ability of salary managers is not simply addition, subtraction, multiplication and division, but should be clear about which mathematical tools should be used to solve practical problems in work. Of course, as a common operating tool, it is necessary to master Excel skills, which can help salary managers improve their work efficiency.
In David ulrich's iconic book "The Transformation of Human Resources", the author thinks that human resources practitioners should not only pay attention to the "activities" of six modules, but also pay attention to the "results and outputs" if they want to create value. Human resource management should make contributions in the following four aspects: promoting strategic implementation, promoting organizational change, building a dedicated staff and improving the efficiency of human resource management functions.
Therefore, ulrich put forward four main human resource roles: (1) strategic human resource management; (2) basic transaction process management; (3) employee payment management; (4) Transformation and change management. As shown in the table.
Among these management roles, besides "basic transaction process management", the compensation manager should also have three roles.
Salary managers must always think about the various salary challenges faced by the company from a strategic perspective. By analyzing the internal/external information and combining the best practices of the external market, leading the company's management reform, the ultimate "result and output" should be to support the contribution of employees and ensure continuous attraction, motivation and retention of outstanding employees.
Through effective long-term and short-term incentives, the compensation management department can improve the contribution of employees. As one of the core positions in the company's internal management, salary managers should listen to the voice of business managers and formulate incentive measures that are in line with the company's characteristics in combination with some incentives applied by their own majors and external markets.
Salary managers are not promoters of organizational transformation, but they must be strong supporters. The transformation of the company's business will inevitably bring about changes in the responsibilities and skills of the company's internal personnel, as well as changes in the company's external target talent market. Therefore, the salary management department needs to carefully study the business direction of the company's transformation, make clear the future competitors, and formulate the salary and welfare system to adapt to the new business as soon as possible.
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