On The Essence And Function Of Salary

To put it simply, in terms of productivity, salary is the monetary fund performance of a living enterprise as a business organization and invested in its production or other economic activities. It is the constituent element of the final cost of the product. From the point of view of production relations, remuneration is also reflected in the distribution of labor income and results, which objectively reflects the relationship between employees and employers, and between employees and employees. As the main body of remuneration strategy, enterprise managers should consider how to lower the cost of human labor under the market dynamic operation environment and competition pressure. On the other hand, they must consider that their own salary standards have the competitiveness of the industry, so as to achieve the goal of retaining and attracting excellent employees, so as to maintain the productivity of workers and promote the further development of enterprises.

Through the above analysis, it is not difficult to find that remuneration is first the price performance of laborers' labor value, that is, enterprises get the right to use labor through payment, and put labor into production and operation process to create production and operation benefits. At the same time, salary is also an important management tool and competitive chip in enterprise organization. A good salary structure content design can enable enterprises to mobilize the enthusiasm and creativity of employees by using pay leverage, establish employer's brand, and improve their economic and social benefits.

From the perspective of enterprise organization, there are four main functions of salary:

First, Value-added function 。 As an investment behavior of a company, salary can bring the expected revenue greater than cost to the organization. Only when this kind of income exists, can the organizational investment enter a virtuous circle and the driving force of investment.

Secondly, Incentive function 。 Incentive function is the core of enterprise salary management. Salary can be understood as an evaluation of employees' work performance (work quality and quantity). The organization achieves the purpose of meeting the material needs and spiritual needs of workers through salary distribution, stimulates and encourages their work initiative and enthusiasm, and improves work efficiency and labor productivity. The main motivation of employees to work is to pursue the maximization of personal interests (material and spiritual), and the direct expression of interests is salary. We must admit that salary is an important incentive lever, which can mobilize the enthusiasm and creativity of the staff and improve the efficiency of the organization.

Thirdly, guiding function. The decision-making level of the enterprise expresses the strategic national standard, organizational vision, cultural idea and core value of the enterprise through the design of the salary system and the salary structure content, so as to guide and regulate the behavior of the employees. Salary management in modern enterprises has become an integral part of enterprise strategy. Salary is not only an important tool for current management, but also a navigator for long-term development of organizations.

Fourth, the return function. After the employee has paid the effective labor, the enterprise provides remuneration and remuneration in the form of remuneration in accordance with the quantity and quality of labor provided, so as to ensure the need for reproduction of laborers. Salary return compensation function is the basic premise and important foundation of salary management.

　　 Pay It is a holistic concept. It is like a family. Welfare is also an important part of it. The level of welfare represents and conveys the goodwill of an enterprise organization in a sense. In order to treat employees well, the design of the company's remuneration system is bound to reflect a high return. It is only the implementation of high pay and high welfare. Here we can do a test: in Figure 1, let's assume that we only need to pay a good salary in the external industry competition for the fixed salary item, and the welfare allowance will be adjusted to more than 30% of the total salary of the employees. If the testers are employees of the enterprises, what conclusions will they have?

I believe that more than 80% of the people will come to this conclusion: This is a high security mode of pay, to achieve or even exceed the bottom line of the psychological expectations of employees. In the process of establishing the relationship between the company and its employees, enterprises should be the active party and should shoulder more responsibilities. Between enterprises and employees should be good at heart and heart, and do not be cautious. The goodwill and warmth of the enterprise and the sense of belonging of employees can not be extravagantly discussed from the welfare benefits.