How To Deal With Salary Design For Early Start-Up Enterprises

For the founder of the enterprise, how to design the employee compensation system is one of the important problems that enterprises face at the beginning of their establishment.

The complexity of this problem lies in: first, employees have different levels, and what incentive systems do they have for different levels of employees?

Secondly, there are a variety of pay systems for choice, such as ESOP, option, MBO (MBO) in the long term, and so on. Which system is most suitable for your business?

In addition, with the development of enterprises, should the remuneration system be adjusted accordingly?

In general, the salary design of start-ups adopts the following principles: first, the principle of high wages and low welfare.

Two, concise and practical principles.

Three, increase motivation.

Four, establish performance pay system.

Enterprises can be divided into two categories: highly skilled jobs, departments and general businesses, and service oriented enterprises.

There will be differences between the two in the wage system: highly skilled jobs, enterprises have a strong dependence on the recruited staff, so in order to recruit skilled personnel, the long-term development goals and relative stability must be taken into consideration in the design of wage earners.

To this end, the wage system should adopt a flexible combination of ways, such as direct equity, high salary and welfare.

For the general management, service departments and posts, we should adopt a post and rank wage system.

The sooner the system is established, the better.

According to the enterprise's post needs and actual capabilities, and the actual ability and level of the staff, there are targeted posts, quota and grading, fixed salary.

Employees entering the enterprise have clear personal positioning and development goals, and the change of posts is bound to be related to salary.

The wage system and incentive system of enterprises are two different systems. In particular, start-ups should be differentiated, otherwise, the basic wage system and incentive system will be confused, so that their enthusiasm for work will be compromised.

If managers want to motivate employees who make outstanding contributions, they can not adopt a simple way to raise salaries directly in their original positions. Instead, they should adopt a method of one-time reward or promotion.

At the same time, pay attention to two aspects of salary design.

1, avoiding the gap between the employees and the ordinary employees, the difference between the excellent employees and the ordinary employees is greater than that of the work itself.

The difference between the former and the former is conducive to the stability of the excellent staff. The difference between the latter has resulted in employees' dissatisfaction.

2, to avoid a small gap, the difference between the small and medium-sized is that the difference between the excellent employees and the ordinary employees is less than that of the work itself.

It will cause dissatisfaction among excellent employees.