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Heavy Pay Is Not As Heavy As "Reward".

2010/8/20 16:26:00 54

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"Well, how can I make a difference this year?

Quit

The ceiling is only 5, and the number of people leaving now has reached 6, and there is another departure procedure being processed.

In recent years, Mr. Wang, who heads the Department of a production enterprise, is very depressed: in the past few years, the company's salary has been rising all the way. How can the turnover rate go up year by year? In order to retain a key employee who is leaving, he even proposed that he could raise 8% on the basis of 9% of the salary he paid six months ago.

Embarrassment: the turnover rate is the same.

Pay

Qi Qi

It is understood that in the case of Mr. Wang similar to the situation, it is not a case that the company's turnover rate is included in the performance appraisal, but most executives are unable to cope with the fact that the turnover rate is rising year by year.

Mr. Wang also noticed this phenomenon at the top of his company, so the quota for the highest turnover of staff in various departments is gradually relaxed every year.

Mr. Wang himself was also deeply frustrated that I really did.

Administration

No way to keep people?

According to Hewitt's special investigation, the rate of remuneration increases year by year.

Data show that from 2001 to 2008, the turnover rate of automobile manufacturing enterprises increased from 8.3% to 17.4%.

At the same time, business managers also account for their own cost accounting: for a company with 300 employees and a turnover rate of 15%, a reduction of 5% of the turnover rate is equivalent to saving about 1 million 700 thousand yuan per year in direct and indirect costs.

For this reason, paying people with pay has become a considerable part of the practice, but it does not seem to be fully effective.

Reason: imbalance between talent supply and demand

The rise of pay will lead to a high turnover rate. In this regard, Hewitt believes that with the rapid economic growth, the imbalance between talent supply and demand is the fundamental reason for the rising salary rate, but it can not restrain the rise of turnover rate. Many enterprises are expanding in the market and between cities. This increases recruitment opportunities, and also makes the supply of talent, especially the supply of high-end talents, unable to keep up with demand. Some jobs, such as sales and marketing, are in great demand.

There are many opportunities for job hopping. These people often receive calls from headhunters.

Of course, there is a subtle relationship between the growth of pay and the turnover rate.

Take the star rated hotel industry in Wuhan as an example. In the past one or two years, with star hotels springing up everywhere, despite the fact that many hotels have increased their salaries considerably, and some of them have more than doubled in order to retain talents, they still can not change the fact that the flow of talents is frequent.

Reflection: heavy pay is not as heavy as reward.

"Raising salaries is an important way to attract talents, but this directly leads to the increase in the cost of enterprises, and it can not solve all the problems. What should we do?" the Hewitt senior counsel gives a solution strategy: it is advisable to retain people from full pay and change to pay people with comprehensive remuneration. Wages alone are not enough. If we find that salary is not effective, we should consider ways beyond salary, such as training opportunities, and implement long-term incentive measures and incentive mechanisms beyond salary.

Salary and welfare management should be guided by market orientation.