Salary design, how to achieve the best incentive?
Original: He Yi Human Resource Management Consulting
Enterprise A is a star enterprise in a certain city. Its welfare and profit are at the local advanced level, and the overall salary level is also very competitive. However, it is a headache for business managers that salary has always been the object of people's complaints, and people's salary satisfaction is not high. The backbone personnel are constantly losing, and the super-level salary payment has not played its due incentive role. With the help of the joint-stock system reform, the leaders of the company asked He Yi Human Resource Management Consulting Company to plan and design the enterprise salary systematically.
Salary system diagnosis:
In order to fully understand the salary problems in this enterprise, we have adopted in-depth interviews, questionnaires and market research to fully understand the salary status of this enterprise, the salary situation in the region and the salary situation in this industry. Through investigation and interview, we found that the salary of this enterprise has the following problems:
1, middle and high school wages are far below the industry level and regional level.
The salary curve shows that the level of senior and middle-level personnel is far below the industry level, and they are not very competitive in the local market, which is lower than the high salary in the region. Because of the scarcity and importance of middle and high-level personnel, they have become the main targets of competitors in the region and even the whole country. The lure of high salary is also the direct reason for high school staff to quit.
2. The wages of technicians and skilled workers are also lower than the market level.
In this enterprise, the value of technicians and skilled workers is not well reflected. This enterprise measures people's value mainly by workload, while the value of skilled jobs is not well reflected in salary because it is not intuitive. This makes the salary of technicians lower than the market level. At the same time, it has also caused continuous quality problems of enterprises. Low wages have caused technicians to jump ship, and the lack of technical strength has caused great hidden dangers to this enterprise.
The salary of ordinary employees is very competitive in the market.
The salary level of ordinary employees is basically close to the industry average, but far higher than the local level. Because the average income of the city itself is relatively low. Therefore, it is a very desirable thing for people to work in this enterprise. The base of grass-roots personnel is huge, which makes the total wages of enterprises a lot, and the average wages are also very high in the local area.
4. The concept of average is deeply rooted, and the salary level is uniform.
As a traditional state-owned enterprise, the average concept of enterprises is still deeply rooted, and the difference in personnel salary is very small, not only vertically but also horizontally. For example, all managers are at the same level, whether they are engaged in marketing or logistics, managing 10 or 100. The contrast with the market situation is obvious. Business leaders also realize that this is a serious problem, but they dare not widen the wage gap, because they don't know how big the difference between different levels and personnel is reasonable. In addition, they dare not widen the wage gap, lest people feel uneasy and have opinions.
It is difficult to adjust the salary of technicians, and promotion depends on being an official.
The company's salary promotion mainly depends on the promotion of officials, and the limited management positions are far from meeting the needs of personnel. Narrow promotion channels make it difficult to raise the salaries of technicians. In order to solve this situation, the company has set up many deputy directors for technicians, thus raising their wages. But this leads to bloated institutions, unclear responsibilities and low efficiency; On the other hand, the technical personnel leave their posts, and their technical level cannot be brought into full play, which affects the company's technological development and development potential.
6, punitive pay, more work, less work.
The company mainly adopts a policy, which usually does not pay more for more work, but if something goes wrong, wages will definitely be deducted, resulting in more work and more pay, less work and less mistakes, and it will not work well. The more you do, the less you get. Moreover, there is no necessary connection between enterprise benefits and individual employees. As a result, people's attitude is negative, they don't work hard, their work efficiency is low, and the production capacity of enterprises is not fully exerted, so many market orders are lost.
Generally speaking, as a company transforming from a traditional enterprise to a modern enterprise, the company still retains the legacy of traditional pot rice, with serious egalitarianism, and the salary does not highlight the post value, and does not reflect the objective requirements of tilting towards key positions and performance, which makes the salary of enterprises lack both external fairness and internal fairness. Although the company has carried out the shareholding system reform, the original incentive system has not changed, and the employee status remains the same. In this way, although the wages of enterprises are not underpaid, employees are ungrateful at all, and wages have not played a corresponding incentive role. At the same time, unreasonable salary design leads to the brain drain of key talents, laying a hidden danger for the company's future development.
Salary system design:
According to the in-depth communication with people at all levels of the enterprise, we have come to the understanding that salary is not a welfare that everyone naturally deserves, but a reflection of everyone's value and a reward that can only be obtained through work. Therefore, salary design should play its incentive role and dilute its health care role. The salary should be tilted to key positions, adjusted according to the value of the position in the company and the substitution in the market, and at the same time, the salary should reflect the corporate culture orientation of more work, rewarding the excellent and punishing the poor. The following are the specific principles of salary design.
1, the salary is moderately advanced and the key positions are competitive.
According to the market survey, we put forward the adjustment direction of the company's salary: the salary of key positions should be in line with the high level in the industry and the high level in the region, and the salary of ordinary employees should be kept at the upper-middle level in the region. Greatly improve the salary level of middle and senior managers, key technicians and irreplaceable personnel in enterprises to maintain market competitiveness; The salary level of ordinary people and those whose positions are easily replaced will be slightly adjusted on the premise of keeping the market median level unchanged. In this way, the salary not only maintains the market competitiveness, but also embodies the incentive and retains the talents needed by the enterprise; At the same time, the labor cost is effectively controlled, because the number of key positions in the enterprise is small after all, and the total salary will not be greatly improved after the overall adjustment.
2. Position evaluation, ranking the position value.
The tool to solve the position value is position evaluation. In the job evaluation, we evaluated the job responsibilities, job complexity, required skills and working conditions, and adjusted the evaluation elements according to the industry, regional characteristics and corporate culture requirements of the enterprise to ensure that the evaluation can truly reflect the job value and the company's current and future positioning. After the job evaluation is completed, the role and importance of each job in the company's business value chain will be clear at a glance. At the same time, the training and operation process of post evaluation is also a process of cultivating people and changing egalitarianism. Through job evaluation, the scores of work values of low-level senior high schools are obviously enlarged, and the scores of the same level are also very different. Some grass-roots positions are more valuable than middle-level positions, especially technical positions, and their scores are much higher than those of some middle-level management positions.
3, broadband salary, so that everyone has more room for growth.
According to the job evaluation score and market salary survey, we designed broadband salary: the salary of this enterprise is divided into ten grades, one grade and one grade. Grade represents the value difference of the position, and grade represents the ability and performance difference of specific personnel. In this way, the salary bid farewell to the simple point value in the past, forming a broadband interval, and each interval has an average salary, a maximum salary and a minimum salary. The higher the salary level, the greater the interval value, and the upper and lower interval salaries overlap. If employees do a good job, they may earn more than their superiors. Because the assessment scores of technicians are higher than many middle-level management positions, their salary level is correspondingly higher than these management positions. In this way, technicians can get higher wages without being an official, prompting technicians to concentrate on professional skills. The design of broadband salary effectively ensures that all kinds of employees have more room for growth in their careers.
4, dynamic wages, it is no longer the same to make a difference.
Broadband salary reflects the value of the position, but it must be obtained through hard work. In order to highlight the relationship between performance and salary, we have adjusted the structure of broadband salary. The main part of salary is salary, and there are a few benefits, allowances and bonuses. Among them, wages are divided into dynamic and static parts. Static wages mainly play a health care role and guarantee the daily basic life of personnel. Dynamic compensation mainly plays an incentive role, which is linked to the performance appraisal results of employees and changes with performance changes, avoiding the situation of doing well and doing poorly.
Dynamic wage ratio can be designed flexibly according to the incentive orientation of enterprises. (See the dynamic wage model below). The general principle is: the greater the post responsibility, the greater the dynamic salary, so the dynamic salary of the top is definitely greater than that of the grassroots; The greater the correlation between job performance and personal efforts, the greater the salary fluctuation. For example, the dynamic salary of the sales department, which mainly relies on personal efforts, is greater than that of the positions that mainly follow the procedures, such as finance. In this way, dynamic wages are linked to the size of responsibility and the degree of effort, which is fairer.
Dynamic compensation truly reflects the contribution of personnel, and embodies more work and more pay. The performance and salary of the same position vary greatly. People with high wages will earn much less if they don't contribute. Bonuses encourage people to work hard. Static wages, benefits and allowances provide necessary protection for personnel. This kind of salary not only has the health care function, but also highlights the incentive orientation. All employees will work hard around the achievement of organizational goals, and the salary really brings about the improvement of the overall performance of the enterprise.
note:
1, system principle
Salary design does not exist in isolation, it needs the cooperation of other systems in the enterprise to be effectively implemented. Without a clear job description, job evaluation is impossible; Without a scientific assessment system, dynamic compensation is easy to become a mere formality. In order to ensure the smooth operation of the salary system, we also designed a scientific target system and performance appraisal system for the company, and established a job description for each position, which not only provided a scientific basis for salary design, but also ensured the efficiency and durability of salary incentives.
2, communication principle:
Salary is related to everyone's vital interests. If employees don't support it, it will be difficult to carry out salary reform and even cause fluctuations. To this end, through continuous training, let people understand the principles and key points of salary reform and the direction of their own efforts; Through all-round interviews, the doubts and anxieties of the staff were eliminated and their suggestions were absorbed. This ensures the rationality of salary design and the transparency of the process. The incentive design with a sense of fairness and crisis has greatly touched people and prompted them to adjust their mentality and thinking. It is also necessary to mobilize all staff and publicize vigorously, so that the introduction of the whole salary plan is not a closed-door process, but a systematic process.
3, the principle of step by step:
In order to ensure the smooth progress of salary reform and prevent the adverse reaction of personnel, we not only give the scientific salary model that the enterprise will realize in the future, but also provide a transition plan for it to choose the pilot operation, and make timely adjustments and corrections according to the problems in operation, and then vigorously promote the salary reform after the enterprise management foundation and personnel thinking are fully in place. This ensures the smooth operation of the salary system.
Through this salary reform, the mental outlook of employees in this enterprise has been greatly improved, the situation of not working hard has been gradually eliminated, and the phenomenon of employee turnover has gradually decreased. In the case of a small increase in the total salary, the work efficiency and overall performance of enterprise personnel have been greatly improved, and the salary has really played its due incentive role. Here, I hope this case can inspire many enterprises that want to use salary incentives to enhance their competitiveness.
The internal reward and external reward of enterprises constitute an important factor of employee satisfaction, and employees are also divided into five types. Enterprises can only produce the best results if they are motivated according to different grid types.