Comparison And Enlightenment Of The Salary Pattern Of Famous Enterprises

As an important part of the human resource management system, compensation management is the most concerned content of top management and all employees. It is directly related to the effectiveness of human resources management, and has a huge impact on the overall performance of enterprises. All enterprises are exploring effective remuneration patterns. However, each enterprise has its own characteristics, and there is no universally applicable salary pattern. However, the current mainstream and well-known enterprises pay mode can bring us some valuable thinking.

　　 Current mainstream pay mode

The design of the salary mode needs to follow the enterprise strategy highly. Without the matching strategy, the salary orientation is the blind direction without direction, which will hinder the development of the enterprise.

Generally speaking, the salary has five main bases, and accordingly forms the current five mainstream salary modes: the post based pay mode, the performance-based pay mode, the skill based pay mode, the market based pay mode, and the annual pay based mode.

　 Post based pay mode

Post based pay mode, as the name implies, is based on the value of post as the basis and basis for payment of wages, and the method and basis for the payment of salaries based on post value, that is, when determining the basic wage of employees, first of all, it makes an objective evaluation of the value of the post itself, and then gives the basic salary equivalent to the job value of the person who takes the job according to the evaluation results. Popularly speaking is in what post, what money to take. For posts, it is more objective and stable for employees.

Advantages: compared with the traditional payment system based on seniority and administrative level, it has realized the same pay for the same posts, and the internal fairness is relatively strong. Job promotion and pay scale also promoted, and the enthusiasm of employees to work hard for promotion opportunities was mobilized.

Deficiency: if an employee is not promoted for a long time, although the work of this post is getting better and better, its income level will not be greatly improved, which will also affect the enthusiasm of its work. Since the post oriented salary system values the fairness of the internal position value, when recruiting scarce talents from the market, it is likely that the internal salary system of the enterprise can not meet the salary requirements of the scarce talents, and it will not attract the talented people who are in urgent need.

Performance based pay mode

Performance-based pay mode is based on employees' work performance, and the only basis or basis for payment is wage performance or labor efficiency. The performance of employees is compared with the established standards to determine the amount of performance pay, in the form of piecework wage system, commission system, annual salary system and so on. The performance pay system is suitable for production workers, managers, salesmen and so on.

Advantages: the income of employees and the completion of their work objectives are directly linked, so that employees feel fair. "Do more work and do less work better than bad work", the incentive effect is obvious. Employees' work objectives are clear, and organizational strategy is easy to achieve through the decomposition of layers of goals. Enterprises do not have to pay too much labor cost in advance, and can save labor costs when the overall performance is bad.

Deficiency: when employees consider their personal performance, they will cause bad competition among departments or team members. In order to achieve good personal performance, employees may reduce cooperation. Therefore, when teamwork is needed, the role of personal performance should not be overemphasized. Performance evaluation is often difficult to be objective and accurate. For most Chinese enterprises, few enterprises have perfected the performance appraisal system. If the income and performance are linked up under such circumstances, it will create new injustice and will not stimulate the performance payment. Performance payment assumes that money stimulates employees and leads to bad guidance after long term use. When enterprises grow slowly, employees can not get high material rewards, and their motivation for employees is reduced. When enterprises are in trouble, it is difficult to "tide over difficulties" and may choose to quit or work negatively.

　　 Skill based pay mode

The skill based pay mode is based on the ability / skill of the employee as the fundamental basis for the payment of wages, that is, the direct object of the payment of the salary with the element of human capability. This mode considers that the difference of employees' remuneration is mainly from the difference of people's ability level, not the level of job rank and the value of position. The skill based pay mode is popularly stated that good ability results in good results, which is applicable to skilled workers, technicians, R & D personnel and professional managers in enterprises.

Advantages: staff focus on improving their ability, it is easy to change jobs, and also increase development opportunities, even if not in this enterprise will also be competitive. Employees who are unwilling to develop in administrative positions can go deep in the professional field and get good treatment as well. They retain professional and technical personnel for enterprises. The continuous improvement of staff capabilities enables enterprises to adapt to the changing environment and enhance the flexibility of enterprises.

Insufficient: do the same job, but because of the different skills of two people and different income, it is easy to create a sense of injustice. High skilled employees may not have high output, that is, the assumption of skill wages may not be established, which depends on whether employees are put into work. Defining and evaluating skills is not an easy task, and the cost of management is high. Employees focus on improving their skills, and may ignore the overall needs of the organization and the completion of current work objectives. It is also one of its weaknesses that how to motivate people at the top of their skills.

　 Salary pattern based on market

The market based pay mode is based on the market price to determine the remuneration level of the enterprise, according to the salary survey results of the regional and industry talent market, to determine the specific salary level of the post. As for the above, equal to or below the market level, we should consider the profitability of enterprises and the strategy of human resources. The basic law of supply and demand in market economy determines the price. It also applies to the wage pattern of employees. The scarcity of talent resources determines the level of remuneration to a large extent. Generally applicable to the core personnel of enterprises.

Advantages: enterprises can attract and retain key talents through salary strategy. Enterprises can also adjust the remuneration level of those highly qualified talents, thereby saving labor costs and enhancing their competitiveness. Referring to the fixed wages in the market, it will be easy for the employees to accept in the long run and reduce the contradictions among employees in the enterprises.

Insufficient: the market-oriented wage system requires the company's good development ability and profitability, otherwise it will be difficult to pay the wage level that is compatible with the market. Employees must have a good understanding of the salary level of the market before they can agree with the market wage system. Therefore, this salary mode sets a high demand for the objectivity of the salary market data, and at the same time, it also puts forward requirements for the professionalism of the employees. Pay in full by market, the internal pay gap will be very large, will affect the fairness of the organization.

　　 Salary model based on annual salary

The annual pay system is a simple and traditional salary system. It is a management system that pays or increases salaries according to the length of service period of employees. It is often associated with the lifelong employment system. The basic feature is that the longer the length of service is, the higher the salary is.

Advantage: fostering employee loyalty. Employees have a strong sense of security.

Insufficient: too rigid wages, too weak elasticity, and not easy to adjust. It is easy to form an atmosphere of seniority, which is not conducive to the growth of talented people. Not conducive to attracting young people, even if they enter the business, they will lose confidence because of the long wait.

The current five mainstream pay modes have their advantages and disadvantages. The author compares them clearly through the following forms.

Post wage system, performance salary system, skill wage system, and market wage system are only considered from a single point of view. The annual wage system has been used only as an auxiliary unit in China. Therefore, no single salary mode can be constructed into a systematic salary system. Only by combining these five pay modes into a complete salary system can we make better use of the strategic role of salary. Next, I will analyze the salary pattern of some famous enterprises and look for some practical experiences that can be used for reference.

Salary pattern of famous enterprises in various countries

The enterprises in China, the United States and Japan have their own distinctive characteristics, and there are also great differences in the salary pattern. The author will choose some famous enterprises in different countries to analyze and compare their salary pattern differences.

　　 Salary pattern of Chinese famous enterprises

　 Heng Shun

In the past, there were many problems such as complex distribution system, unreasonable wage structure and different remuneration in the past. In terms of performance appraisal, there were some problems such as lack of pertinence, lack of rewards and punishments and formality. Therefore, deepening the reform of distribution system is particularly urgent and important.

Heng Shun Group decided to reform the old salary distribution system in an all-round way, achieve equal pay with the same job in one step, reasonably allocate the distribution and strictly implement performance appraisal. On the basis of multi arguments, a new salary distribution system arises at the historic moment. Unified salary standard: unite the income of employees into two parts: basic post salary and performance appraisal salary. The structure is more reasonable and the key point is more prominent. The equal pay for the same posts is achieved, and the phenomenon of seniority is completely broken. The post contribution is highlighted: the wages of employees are closely linked to post responsibilities and job loads, and gradually tilted to those who shoulder heavy responsibilities and work hard. The implementation of the full staff assessment: according to the characteristics of different types of personnel, such as production, sales, management and logistics support, the corresponding performance appraisal method is established, and the concept of full service sales is closely combined with the income of all employees. Focus on team building: the performance pay of middle-level cadres is fully linked to the monthly assessment of workshop and department, and the first level is responsible for the first level.

　　 Haier

In order to meet the needs of international development, Haier adopts a variety of wage modes. The implementation of stratified and classified salary system and flexible allocation form regulate 13 kinds of salary modes. Scientific and technological personnel carry out the scientific research contract system, and the marketing personnel carry out the annual salary system and the royalty wage system. The production personnel implement the piecework wage system, while the auxiliary personnel implement the wage point wage system. Haier's salary is divided into grades, and the post wage standard does not exceed 3 times the average wage of local workers. There is no bonus every month, and the bonus at the end of the year does not exceed two months' salary. Scientific research and sales personnel are linked to work efficiency, and scientific research personnel are rewarded according to market efficiency and scientific research results. If sales personnel are external salesmen, income is linked to sales promotion results. For front-line staff, based on the quality value voucher, we should implement the full point salary system with the point in place and the merit pay.

In the formulation and implementation of wage distribution policies, Haier has always adhered to the principle of "openness, fairness and impartiality", and carried out scientific assessments of every post and action. Each employee has a 3E card (3E: each person: Everyone; daily: Everyday; everything: Everything), labor day, employees can calculate the wages on the basis of the implementation of the 9 indicators of the day's output, quality, material consumption, process, etc., that is, the so-called "employees can offer themselves". According to the goal, managers are divided into: annual target - monthly goal - Nissin, calculating the earned wages of the month. The salaries of employees are open and transparent, and only according to the effect, regardless of qualifications, the concept of equal pay for the same posts has been changed into the concept of equal pay for equal pay. In Haier, high quality, high skill and high remuneration, the value of talents has been truly reflected in the wage distribution, which greatly mobilized the enthusiasm of employees. {page_break}

　　 Salary pattern of famous American Enterprises

　 IBM

The IBM company's salary concept is "first-class company, and it pays for the first-class company's wages". Only when employees get first-class salaries can employees truly feel proud of being a first-rate company, and love their company and love their work. To ensure that other companies have more talents and retain their internal talents, IBM attaches great importance to the pay level in the market when determining pay standards. IBM will organize market research, investigate some pay items, and accurately and timely grasp the standards of other companies in the same industry, so as to ensure that IBM's pay level keeps a leading position in the same industry. When selecting respondents, priority should be given to several enterprises: 1) first class enterprises with first-class enterprises, basic remuneration standards and employee benefits; 2) enterprises with similar jobs, the treatment of people who work in the same market as IBM, and those who choose to engage in technology, manufacturing, business and service sectors; 3) some enterprises with relatively good prospects for development will be attractive for developing talents. Pay attention to the external competitive policy of salary has attracted a large number of excellent talents for IBM and ensured the leading position of IBM in the market.

　　 Microsoft

Different from traditional industries, knowledge workers in high-tech enterprises have significant differences, and traditional salary patterns are no longer applicable. Microsoft creatively adopts the salary system based on ability and the salary mode with the core of the stock option. It really inspires the enthusiasm of the staff from the angle of salary.

Microsoft provides two parallel wage promotion channels for technicians and management personnel, and solves the dilemma of constant salary. Microsoft has set up a "technology level" in each profession. This level is represented by numbers, which not only reflects employees' performance and basic skills in the company, but also reflects the experience and experience, and determines the wage level of the employees according to the technical level. This "technical level" has greatly encouraged the technical staff to make them feel secure in their professional work.

Microsoft is the world's first stock option to reward ordinary employees and pioneered the stock option award. According to statistics, Microsoft has thousands of employees in the ranks of millionaires by stock options. In 2003, Microsoft changed the option incentive method from restricted stock to stock option in the salary reform, aiming at better motivating employees and continuing to attract and retain talents. At the same time, this change will be more beneficial to employees, shareholders and the public, and will be recognized by many parties. It turns out that employees who work in Microsoft for more than five years rarely take the initiative to quit.

Salary pattern of famous Japanese Enterprises

　 Panasonic

In the 90s of last century, Matsushita's wage structure was divided into: age wage, post wage, ability contribution wage and job wage. With the development of society, great changes have taken place in the industrial structure, competition pattern, technology level and employees' concept. The prevailing wage system in Japan has been increasingly unable to adapt to the development of the times. In 2001, Panasonic had its first full loss in more than 80 years. The situation has reached a serious level, forcing Panasonic management to start thinking about management problems and carry out a series of reforms. Matsushita boldly carried out the personnel system reform, broke the 80 year old series of annual salary system, canceled the age wage and ability contribution wage, while retaining the post salary and job wage, increased the reward strength, changed the concept of wage payment, emphasized the ability and contribution of individual. In the past, the ability to contribute wages is relatively fixed, regardless of job performance, and ultimately, according to the evaluation results of workers, wages will rise, but only a higher number of employees pay a little more adjustment, low staff adjust a little less. After the reform, new changes have taken place in the evaluation: the completion of the performance is passed, the wages remain unchanged; the performance is excellent, the increase in wages is increased; the performance is poor; wages are falling; when the performance is low to a certain level, the job will be adjusted or even dismissed directly.

　　 SONY

Japanese culture has a profound impact on Japanese enterprises. After analyzing the current international development trend, SONY has carried out a series of new reforms. Within SONY, the 5P evaluation system is used to evaluate employees' performance. 5P refers to individuals (Person), positions (Position), past (Past), current (Present) and potential (Potential). SONY quantifies all the indicators, and believes that quantification can scientifically assess job discrepancies. Of course, some indicators are difficult to quantify. For such indicators, SONY has adopted a way to answer questions, and then converted to quantitative results, and ultimately, it is quantified. The performance appraisal of SONY adopts the annual assessment system. At the end of each year, the SONY human resources department announces the evaluation criteria to employees. Each employee first conducts self-evaluation according to the standard, and then the boss carries on a conversation with his subordinates. The conversation is mainly to analyze the work contents of subordinates, and then evaluate the way and method of work. After completing the personal evaluation, the human resources department also needs to evaluate the team and consider the combination of personal evaluation and team evaluation. The evaluation system is going round and round. After the completion of this year's assessment, the target of next year will be set naturally. According to the final result of the examination, SONY has formulated the salary policy to ensure that the assessment result is linked to the salary, so that the employees in the evaluation index should be taken seriously.

Comparative analysis of different models

It is not difficult to find the compensation mode of famous enterprises in different countries. They have formed their own mode under the influence of their own local culture, but with the development of the times, there are some commonalities. From the perspective of development, the differences of salary patterns in different countries are more obvious. But from the perspective of future development, the pay mode of countries is getting closer and closer.

　 Historical differences in the pay modes of famous enterprises in different countries

Under the influence of traditional culture and planned economy, Chinese enterprises attach more importance to the enterprise level and internal equity. In the pay mode, they prefer the post based pay mode, the skill based pay mode and the annual pay based mode. In the past, the remuneration problem of Heng Shun had made the internal sense of injustice unfair. Therefore, in reform, we emphasized the same pay with the post and highlighted post contribution. Haier adopts different methods according to different posts, and designs salary system according to post differences.

American enterprises advocate individualism, market economy dominates the operation of enterprises, and the flow of personnel is relaxed. In the mode of remuneration, they prefer the market based pay mode, performance-based pay mode and skill based pay mode. IBM pays attention to the salary level in the market, and ensures that its salary is in the leading position in the market and keeps a high dynamic match with the external market. Microsoft uses a competency based pay system to set up a "technology level" to focus on the skills and capabilities of employees.

Japanese enterprises advocate loyalty and stability, pay attention to the flexible part of salary. In the pay mode, they prefer to adopt the annual pay mode, the post based pay mode and the performance-based pay mode. Matsushita is facing difficulties and is determined to change Japan's deep-rooted age oriented pay and strive to change the concept of wage payment. SONY is pursuing quantitative assessment, refining assessment indicators and looking for more scientific assessment of employees' work results.

　 How to choose the salary mode correctly

Although there are obvious differences between historical and traditional cultures in different countries, the difference is narrowing with the development trend of globalization. When the competition between enterprises is increasingly encouraging, the pay mode is also developing towards a more scientific direction. Careful analysis of these well-known enterprises, it is not difficult to find that the future pay mode has six major trends: that is, "performance oriented, people-oriented, diversified structure, quantitative assessment, mental performance, teamwork" trend.

Enterprises should further enrich the form of incentives. Rich motivation plays an important role in modern salary management. It can improve employee satisfaction and enhance employee loyalty, and design a new salary and welfare mode suitable for employees' characteristics. For example, we should increase non wage remuneration and other performance related pay, and work out a differentiated remuneration package to avoid "one size fits all" approach.

There are social and economic factors and internal factors that enterprises need to consider in the choice of remuneration mode. The internal factors of enterprises play a decisive role in the pay mode. Internal factors include corporate culture, strategy, growth cycle, and personnel composition. For example, Heng Shun Group has become a cross industry and trans regional modern enterprise group from a traditional workshop type sauce and vinegar production enterprise. Therefore, the traditional culture has a deep influence on the enterprise. Despite the pay reform, the pay model is still based on basic pay plus merit pay. In the choice of pay mode, enterprises should rationally and comprehensively use various salary modes according to their own characteristics, so as to rationally plan salary models suitable for their own development, including advantages and disadvantages, and future development goals.

Enterprises should gradually accept market oriented and establish suitable remuneration system. The market has already become an important reference object of the enterprise's salary, and the market-oriented salary mode has also been put into the choice of the enterprise's salary mode. A salary model suitable for enterprises can attract, retain and motivate excellent employees, and at the same time, it can also save costs for enterprises.

Enterprises establish a people-oriented salary system. To establish a people-oriented salary system, we must first understand the real needs of employees, improve the quality of employees, and increase their material and spiritual concern for employees. At the same time, innovation in the actual salary system of enterprises, such as McDonald's in Japan, will give employees' wives a bonus every year, and they will also have flowers on their birthdays. This practice has enhanced the sense of achievement of employees and interpreted the people-oriented salary pattern very well.

Enterprises should have a deep understanding of the incentive function of corporate culture. Corporate culture is an effective indicator to embody the enthusiasm of employees. It has a strong driving force to create excellent corporate culture, enhance the centripetal force of enterprises, stimulate employees' Collectivism and social responsibility, so as to enable employees to have a strong loyalty and make long-term efforts for the development of enterprises.

Comparing the current mainstream basic salary mode, we can know the current salary management. Analyzing the salary system of well-known enterprises can give us insight into the development trend of salary management. From the representative enterprises in China, the United States and Japan, we can see the difference of pay pattern between enterprises because of different backgrounds, and let us see the trend of scientific development caused by globalization. When we are concerned about those advantageous enterprises, we hope that these experiences can bring new inspiration to more enterprises.

　 Suggestions on management compensation of state owned enterprises in China

It is reasonable to draw lessons from the advanced management mode of foreign countries, so that a set of theories can also be applied in China. The salary management in western countries is more mature than in China, and some advanced salary theories are still in initial application stage in China. Therefore, in order to solve this problem, we must learn from the relevant theories abroad, analyze the environmental differences of different theories, avoid copying the books, and apply them mechanically. The reasons are: first, the social system and economic system of our country are different from those of the West. At present, we are still in the primary stage of socialism, and we are quite different from many Western policies. Secondly, there are differences between China's history and culture and Western countries. The unique ideas of feudal tradition leave us very different from those of the West. This will make us encounter many stumbling blocks when applying Western economic theories, and the application and development of some salary management theories in China are also limited. Finally, the economic development of our country is different from that of the West. To sum up, the Western salary system has certain limitations in China. We should combine our enterprises with modern management ideas as soon as possible, and use advanced management concepts to promote the development of enterprises.

Establish a reasonable performance appraisal mechanism. At present, the salary mode is the trend of spiritual performance. The problem of insufficient incentive is widespread in many enterprises in China. Many enterprises are aware of this and are actively improving the incentive compensation mechanism. Many enterprises still have "insider control" phenomenon, and there is no system to restrain them. Therefore, enterprises should work out a set of appropriate performance appraisal mechanisms to match performance and salary and maximize economic benefits. This is also one of the key directions in the study of salary management.