1. Competitive salary
In order to attract and retain talents, enterprises need to provide employees with competitive salaries, so that they will cherish this job as soon as they enter the enterprise. Higher salary will bring higher satisfaction, which will be followed by lower turnover rate. The lack of market competitiveness of salary will lead to the brain drain of enterprises, and the result is a vicious circle in which enterprises continue to recruit people and old employees continue to leave.
2. A fair and reasonable internal compensation system?
Unreasonable internal salary will cause asymmetry of rights and responsibilities between different departments and individuals in the same department, which will make some employees feel unfair in comparison and cause psychological imbalance. From the perspective of enterprise service value chain, if the salary does not reflect internal fairness, employee satisfaction will be reduced, which will inevitably affect the service value provided by employees to customers that determines customer satisfaction, and then affect customer loyalty. Therefore, in salary management, internal fairness is a problem that managers must pay attention to.
3. Performance-based salary system?
A well-structured and well-managed performance appraisal system can not only retain outstanding employees, but also eliminate outstanding employees.
For employees with poor performance, it is more important to let employees do their best to bring their skills into play. In addition, after the implementation of performance pay, the focus of management is no longer to limit the task assignment and make it consistent with the post level. On the contrary, making full use of employees' existing abilities will become a new focus. The biggest advantage of this salary system is that it can convey information and let employees pay attention to their own development.
Salary design principles:
First of all, employees should believe that they can meet the performance standards of earning extra income. The incentive function of salary lies in the confidence of employees or these rewards.
Second, the performance appraisal indicators for obtaining extra remuneration should be consistent with organizational goals. Otherwise, attractive incentive pay may make employees deviate from their work focus.
Third, employees should pay attention to the remuneration provided by the organization.
Fourth, when designing salary, we should consider that employees will ignore those unpaid goals.