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    Innovation Requires Generous Treatment Of Star Employees.

    2011/7/19 16:00:00 31

    Innovate And Treat Star Employees Well

    Silicon Valley business observers have pointed out that many successful businesses pay for star employees.

    High salary

    To enhance the initiative of enterprises.

    The British authoritative media Journal of economics published an analysis article written by a number of experts from Lund University, Cornell University, University of Maryland and the National Science Foundation of the United States, affirming the role of salary incentives in enterprise innovation.


    As Edison said, innovation is 99% of sweat and 1% of inspiration, but he probably did not expect that remuneration can be one of the driving forces behind innovation, and its effectiveness should not be underestimated.

    Catherine Seaan, Professor of Business School of Stanford University, has devoted special research.

    Taking the software industry as an example, she pointed out that the innovation strategy of such enterprises is often related to the income of employees.

    Who can design innovative software and create new areas of the industry will become star employees, get higher salaries, while those who engage in traditional software updates will have relatively low income.

    From this perspective, the star employees of software enterprises are actually supported by the market and consumers.


    Of course, the software industry is a model in the field of innovation.

    innovate

    The benefits or risks are reflected in such enterprises.

    However, for large-scale software companies, this pattern may be of limited importance.

    Like Oracle Corp, which are engaged in commercial software development, their customers' demand for software content level is relatively fixed, so they can not develop new products without restriction.

    This shows that the more unstable the market is, the higher the salary is needed to employ the first-class innovative talents.


    In the past, it was relatively difficult to test the high salary employees' benefits to enterprises.

    Now, a project developed by the United States Census Bureau can provide researchers with a broader and more accurate assessment model of the impact of technology investment on the needs of skilled workers.

    In this project, researchers collected data on the salaries and corporate earnings of employees from several software companies in 10 states, and analyzed the potential profits of different types of software products, and the proportion of these profits in software creator incentives.

    In addition to data analysis, they interviewed 15 innovative software companies and 7 pharmaceutical companies' employees and management, and compiled data on innovation and human resources management of Microsoft, West bell, HP, CISCO, IBM, Google and others.


    Finally, researchers found that the basic characteristics of the software industry are uncertainty, that is, technicians must create new procedures, but they are not sure whether the product is accepted or not. Managers of software enterprises must allocate research funds, but they do not know whether the product will successfully occupy the market.

    Therefore, the ability to create or select the best projects is crucial to such enterprises.

    Wrong judgment, choice can not bring high return projects, and reject projects that may bring benefits, which will lead to setbacks in the development of enterprises.

    In addition, poor execution will result in a good project being aborted.


    In order to motivate key employees, many hi-tech enterprises have long regarded stock options as an important means of reward.

    The researchers agreed, but warned executives not to include lifelong employment contracts in reward mechanisms.

    Some scholars in the paper said: "in the short term, we agree that innovative enterprises reward the backbone and star employees with high bonus.

    According to our observation and research, this move can not only enhance employee loyalty, but also increase the probability of developing new products with market attractiveness.

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