Efficiency Wage: A Sharp Weapon To Attract Talents

< p > efficiency wage refers to an incentive and salary system that the enterprise pays the employees much higher than the market average level, prompting the employees to work hard.

Its main role is to attract and retain talented people.

As an incentive mechanism, efficient wages have been adopted by some enterprises in China, especially the knowledge-based enterprises.

The adoption of the efficiency wage system helps solve the problem of knowledge enterprises' monitoring difficulties.

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< p > as an incentive mechanism, efficient wages have been adopted by some enterprises in China, especially the knowledge-based enterprises.

Due to the fact that employees' efforts are more difficult to control in knowledge-based enterprises, the adoption of efficient wage system helps to solve the problem of knowledge enterprises' monitoring difficulties.

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< p > < strong > the mechanism of efficiency wage < /strong > < /p >

< p > efficiency wage can reduce the total labor cost of unit efficiency and become a real efficiency wage, which is restricted by a series of factors.

In fact, the efficiency wage theory also gives some assumptions to indicate the mechanism of the efficiency wage.

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< p > < strong > 1. efficiency wage is a gift exchange behavior < /strong > < /p >

< p > in the theory of efficiency wages, there is a basic assumption that the efficiency wage of enterprises is used to exchange staff to double the work, and the staff's doubling work is also used to obtain the high wages of enterprises.

The principle of reciprocity in social relations is the basic condition for effective wages to function.

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< p > < strong > 2. once the laziness is found, it is the ideal practice for the enterprise to punish the lazy person immediately. < /strong > /p >

< p > in efficiency wage theory, efficiency wages must be stimulated and restrained. It is necessary to severely punish lazy persons according to the rules of the game.

This is an important prerequisite for ensuring the efficiency of wages.

Only in this way can employees work hard.

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< p > therefore, it is important to ensure that all those who are found to be violated are severely punished.

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< p > < strong > 3. the determination of the efficiency wage level is subjective. < /strong > < /p >

< p > the employees' recognition of the enterprise, the intimacy of employee relations, the unemployment situation and the judgement of the economic prosperity affect the efficiency wage and the practical efficiency of efficiency wage.

In this sense, whether an enterprise voluntarily pays employees' wages, whether they have good reputation and reputation, especially on the reputation of labor relations and the level of corporate culture will affect employees' judgment of efficiency wages, and then affect the effectiveness of efficiency wages.

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< p > < strong > improving efficiency salary incentive effect < /strong > < /p >

< p > many knowledge-based enterprises are seriously studying a problem: how to design effective incentive system to maximize the enthusiasm of employees.

In real life, efficiency wages play a certain role in attracting high-quality talents.

However, people do not realize that if the objective environment inside and outside the enterprise has not yet been prepared for the effective operation of effective wages, the implementation of effective wages is not effective.

Therefore, the question before us is: what problems should Chinese enterprises pay attention to when using efficient wages? What are the basic skills in designing and implementing the efficient wage system? < /p >

< p > efficiency wage refers to an incentive and salary system that the enterprise pays the employees much higher than the market average level, prompting the employees to work hard.

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< p > < strong > 1.. Pay attention to the supplement of efficiency wage and other incentive mechanisms < /strong > < /p >

< p > the purpose of efficiency wages is to stimulate and restrain the cost of monitoring.

For different industries, the standard of efficiency wage is different.

In some high-tech enterprises, the ability to expel a key employee can be fatal to the development of the company because of the difficulty of finding talents in the field. Therefore, what enterprises can do is to avoid such a situation in many ways.

In such an industry, high salary is no longer the only way to improve performance, because you pay a high salary for employees, but someone may pay a higher price to take him away.

Enterprises should use other incentives, such as stock options, and so on to cooperate with high wages, so that the interests of employees are closely related to the development of the company, so that employees are in a highly motivated and long-term incentive state, and reduce staff's violation of discipline.

Therefore, effective incentive effect often comes from effective incentive mix, not only by an incentive mechanism.

In knowledge-based enterprises, efficiency wages can be combined with equity incentive, opportunity and career incentives, and the effect will be more ideal.

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< p > < strong > 2.. Consider whether enterprises and employees abide by the principle of reciprocity (/strong > < /p >).

< p > enterprises and employees attach importance to the reputation in the labor market. They regard each other's past experience and reputation as the basis for establishing their labor contract relationship. This is the condition for maintaining efficient wages.

That is to say, in the labor market, and even in the product market and capital market, the reputation of enterprises and employees is a very important factor.

Fundamentally speaking, the efficiency wage is effective because it provides a reliable signal to help enterprises or employees make screening and selection under incomplete and asymmetric information.

The reliability of this signal lies in the fact that there is still a basic trust between enterprises and employees. Both sides will believe that the other party attaches importance to reputation and respect reciprocity principle in social exchange relations.

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At present, the development of China's labor market is not perfect, especially the corresponding market order is still in the early stage of construction. The reputation of enterprises and employees is not an important factor in the labor market paction behavior. P

Moreover, because there is no sound employee performance appraisal system, and at the same time, the original salary level of employees can not fully reflect the past performance of employees, the following two phenomena will appear. First, we must not distinguish between good and bad, and then destroy the principle of reciprocity in the labor market, so that the credibility of the labor market will be further lost. Two, it is prudent that companies recruit only leaders who are familiar with or have acquaintances to work in the company, which will lead to the phenomenon of "inbreeding", and at the same time, bind the hands and feet of enterprises.

This seems to attach importance to employee reputation. In essence, it is destroying the rules of the game as well as the first phenomenon.

But the second phenomenon is more thought-provoking. It shows that because there is no real and reliable signal, the trust crisis in China's labor market has already happened.

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< p > therefore, when considering efficiency wages, enterprises should pay attention to the level of trust between employees and employees, whether they can abide by the reciprocal social exchange rules, and also consider whether employees attach importance to their reputation.

Generally speaking, efficiency wage is an incentive for people who value their reputation. Efficiency is also more effective in the case of external labor market paying attention to credit factors.

In the absence of mutual trust, the use of efficient wages should be more cautious.

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< p > < strong > 3. to actively promote the healthy development of the labor market < /strong > < /p >

< p > to improve the incentive effect of efficiency wage, it is important to actively promote the healthy development of the external labor market.

Although the government has an inescapable responsibility for the improvement of the labor market, every enterprise, as one of the main body of the labor market, obeying the rules of the market game and respecting the exchange norms of society is an important part of perfecting the market order, and also one of the means to improve the effectiveness of the incentive tools such as efficiency and wages.

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