Why Is High Wages Not Efficient?

Case F is a company that produces telecommunications products.

In the early stage of entrepreneurship, we rely on a group of like-minded friends, who are not afraid of hardship and fear of fatigue. We work hard from morning till night.

The company has developed rapidly. After a few years, the number of employees from the original ten to hundreds of people has increased from about one hundred thousand per month to tens of millions per month.

Enterprises are bigger, and there are more people. But the company leaders obviously feel that everyone's enthusiasm for work is getting lower and lower, and they are more and more concerned.

Huang Ming, the boss of F company, has always attached importance to thinking and learning. For this reason, he went to the bookstore to buy some books on successful business management and management. He introduced Konosuke Matsushita's way of employing people in this article.

Efficiency can be improved and companies will be able to pay high salaries.

But Mr. Matsushita advocated "high salary and high efficiency", instead of putting high efficiency on the first goal. Instead, he raised the salary of his employees to improve their employees' willingness to work and then achieve high efficiency.

He thought, the company developed, indeed should consider improving the treatment of employees, on the one hand is the old staff to work hard for the company's return, on the other hand is to attract high-quality talents to join the company's needs.

To this end, F has reformulated the reward system, greatly raised the wages of employees, and renovated the office environment.

The effect of high salary is quick. F company soon gathered a large number of talented and capable people.

All the staff are very satisfied, everyone's enthusiasm is high, the work is very hard, the company's mental outlook is also brand-new.

But this good momentum is less than two months, and we slowly return to lazy and slow state.

What's wrong with it?

F's high salary has not changed the efficiency of employee work, and the company's leaders have been in a dilemma.

So where is the crux?

It is a common phenomenon to analyze the F company's situation. Many enterprises have gone through such a process. At the beginning of their business, everyone can take no account of remuneration, regardless of gains and losses, spare no pains, and be equal to each other, and even work overtime and forget their food and sleep.

However, as long as the enterprise is large, we have no devotion to hard work and no remuneration. The enthusiasm and enthusiasm for work without going to work is gone. The atmosphere of caring for enterprises, helping each other and solidarity like one person has disappeared.

Why is that so?

原因有三： 首先，那就是企業(yè)大了，老板或忙于企業(yè)發(fā)展的大事，或忙于社會(huì)上各種應(yīng)酬，與原來創(chuàng)業(yè)的老員工在一起的時(shí)間少了，感情必然疏遠(yuǎn)，心理距離必然拉大，以感情作為激勵(lì)手段的作用自然就會(huì)逐漸消失； 其次，在創(chuàng)業(yè)初期每個(gè)老板可能對(duì)公司員工，尤其是一些核心骨干有過許多承諾，但當(dāng)企業(yè)真的做大之后，老板（或許忘了）并沒有兌現(xiàn)這些諾言，因而老員工便產(chǎn)生失望情緒，接下來的自然是消極怠工，或是集體跳槽； 第三，當(dāng)企業(yè)成長(zhǎng)到一定規(guī)模之后，必須走向制度化的管理，而制度給人的感覺總是冷冰冰的，原來的那種相依為命一起創(chuàng)業(yè)的融洽感覺消失殆盡，稱兄道弟不行了，一切都要按級(jí)別來，按公司規(guī)定來。

The system can not tolerate feelings.

The company should be changed and its incentive mode should be changed.

What can we do when we talk about feelings?

Unfortunately, many of our businesses use money as the only incentive. In the sense of some bosses, high prices can impress the minds of talented people.

Therefore, recruitment will appear in the newspaper: "seat plus power, high salary plus welfare.

What else do you want?

What are you waiting for? "

The implication is high salary and high welfare. You should be satisfied.

This represents the idea of many enterprises.

The two factor theory of Frederick Hertzberger, an American behavioral scientist, tells us that the depth and effect of stimulation caused by various needs are different.

The satisfaction of material needs is necessary. Without it, it will lead to dissatisfaction, but even if it is satisfied, its role is often limited and cannot be sustained.

To mobilize people's enthusiasm, we should not only pay attention to external factors such as material interests and working conditions, but also more importantly, pay attention to work arrangement, employ talents, pay attention to spiritual encouragement, praise and recognition, and pay attention to opportunities for growth, development and promotion.

Another point that must be pointed out is that F has raised its wages, and the working conditions and conditions have improved. However, it has not linked the salaries and bonus of the employees with the work objectives, and is linked to the performance. That is to say, every employee can get a high salary steadily without pressure.

In this case, why do we have to work hard?

The following two small stories illustrate the problem.

In a foreign Forest Park, there were hundreds of sika deer. Although the environment was quiet, the water and grass were beautiful, there were no natural enemies. After a few years, the deer group did not develop, but the disease, death and death had a negative growth.

According to expert analysis, the deer's life is too comfortable.

Later, they bought a few wolves in the park, and after the wolf catch-up, the deer ran nervously to escape.

As a result, the health of other deer is increasing and the number is increasing rapidly.

The Norwegian likes to eat sardines, especially the fresh ones.

Fishermen often put several catfish in the cabin to avoid sardines dying in pit.

Catfish are slippery and scaly. They often love to drone around, making sardines very nervous and unable to live in peace. They have to swim with catfish.

This not only avoids sardine death due to suffocation, but also keeps fresh after reaching the fishing port.

This phenomenon is called "catfish effect".

According to the above analysis, F company's problems lie in: first, there is no experience in the management of fast growing enterprises; secondly, how to make high wages play a stimulating role in superficial understanding; third, the incentive means are simple and unmatched and unsystematic.

In the light of the current situation of F company, the key point is to set up an incentive system based on the salary system to enable enterprises to enter a virtuous circle of "high wages, high efficiency and high efficiency".

The main points of salary design are "fair to the inside and competitive to the outside world".

This requires us to design with the scientific method of seeking truth from facts rather than taking the head at random.

Generally speaking, the following steps should be taken: the first step: position analysis.

This is the basis for determining salary.

Second steps: job evaluation.

Job evaluation (job evaluation) focuses on solving the problem of internal fairness of pay.

Third steps: salary survey.

The key is to solve the problem of external competitiveness of remuneration.

Fourth steps: salary orientation.

That is to say, choose different pay levels according to the company's condition.

Fifth steps: salary structure design.

To determine the position wage, we need to evaluate the position; to determine the skill wage, we need to evaluate the qualification of the staff; to determine the merit pay, we need to evaluate the work performance; to determine the overall salary level of the company, we need to evaluate the profitability and payment ability of the company.

Each assessment requires a set of procedures and methods.

It can be said that the design of salary system is a systematic project.

In the process of formulating and implementing the salary system, timely communication and necessary publicity or training are one of the factors that ensure the success of the pay reform.

If necessary, let employees participate in the design and management of the remuneration system, which will undoubtedly contribute to a more suitable employee needs and a more realistic system of remuneration.

Two, supporting incentives 1. design welfare projects suitable for staff needs.

High salary is only a reflection of the supply and demand relationship of human resource market in the short term, while welfare reflects the long-term commitment of enterprises to employees.

2. pays attention to intrinsic motivation.

While focusing on providing employees with high wages, benefits and promotion opportunities, we should strengthen the sense of competency, achievement, sense of responsibility, importance, influence, personal growth and value contribution to employees based on the task itself.

3. introduced moderate competition.

Let employees feel the existence of the gap, let them feel the crisis of competition, backward means losing their jobs.

After the introduction of competition, the laziness of the staff is gone, and no progress is made. They are working hard secretly, and their working efficiency will increase obviously.

4. rewards and punishments are moderate.

Too much reward can make employees feel proud and satisfied, and lose their desire to further improve themselves. Too much reward will not motivate or cause employees to feel neglected.

Too much punishment will make employees feel unfair, or lose their recognition of the company, or even suffer from sabotaging or disrupting emotions. Too little punishment will make employees despise the seriousness of the mistake and may make the same mistake.

5. creates a fair enterprise environment.

Fairness is reflected in all aspects of enterprise management, such as fairness in recruitment, fairness in performance appraisal, fairness in reward system, fairness in promotion opportunities and so on.

Any unfair treatment will affect the work efficiency and work mood of employees, and affect the incentive effect.

6. attaches importance to team rewards.

In order to promote cooperation among team members, and prevent the phenomenon of imbalance between the upper and lower levels due to the large wage gap, the incentive team measures should also be strengthened.

It is easy to comment on the incentive problem of a company at a certain stage. It is difficult to improve our incentive mechanism with the development of the enterprise. It is more scientific and effective.

The following points may give us some inspiration: 1. should be targeted.

When any enterprise chooses teaching methods, it must be determined according to different objects, different stages and different situations, and a reasonable incentive way should be drawn up.

If we do not take any analysis and adopt an incentive method, the incentive effect may not be very good, sometimes even negative.

2. has no long-term effective panacea.

In the process of establishing and implementing the incentive mechanism, enterprises should constantly increase and delete incentive projects and incentive contents, and complete the continuous updating of incentive mechanisms.

At the same time, it should be noted that the incentive mechanism can not only be icing on the cake when it succeeds, but also be able to provide timely help during setbacks.

3. build a win-win concept.

To fully understand the key to the incentive mechanism is to continuously meet the development needs of enterprises and individuals. Only the incentive mechanism that meets the dual needs of enterprises and individuals is truly a viable incentive mechanism.

High wages are the driving force and pressure for people to produce high efficiency and high efficiency. They are efficient and do not forget high wages. This benign cycle will enable the company to develop in a sustained, sustained and high-speed way.