What are the common problems in traditional salary management and what are the good solutions?

Salary management is an important part of an enterprise's overall human resource management system, and the mainstream business administration education of EMBA and MBA has introduced the construction of personnel salary management system. Salary management includes salary system design and daily salary management. What I want to share with you today is: the problems existing in salary management and related solutions. Details are as follows, welcome to read!

Although the modern salary management system has overcome some disadvantages of the traditional salary management, it has also generated some new problems in practice. In order to overcome these problems, a comprehensive salary management system must be established.

Salary management is the most concerned and sensitive human resource management activity of company employees, which plays a key role in fully mobilizing the enthusiasm of employees. Reasonable salary management can attract, retain and fully motivate employees, otherwise it will have a negative impact. The change of social environment and the entry of foreign culture make the value orientation of talents present a diversified trend. However, the importance of salary is still beyond doubt. How to make salary management help the company to improve the overall efficiency, become a management tool to promote the company's growth, and become the goal that many entrepreneurs yearn for.

However, under the guidance of traditional salary management theory, people pay more attention to direct economic salary, especially monetary salary. Due to the constant change of external environment, the modern salary management system has overcome some disadvantages of traditional salary management, but it has also spawned some new problems. In order to overcome these problems, it is necessary to establish a comprehensive salary management system.

First, the company's salary management problems

With the deepening of market economy reform, most enterprises and companies are constantly improving their thinking and understanding of the reform, and great changes have taken place in salary management. The planned, administrative and promotion salary system has been transformed into a new post and post-benefit salary system, and employees' understanding of salary management has also been qualitatively improved. However, a rational analysis of the salary management of some enterprises and companies shows that there are still the following problems to be improved:

1. The salary strategy is inconsistent with the company's development strategy.

When discussing the salary design, the company pays more attention to the principles of fairness, compensation or equality of interests and transparency, but lacks rational strategic thinking on the definition of the whole salary. The strategic orientation of salary design is to organically combine the construction of the company's salary system with the company's development strategy, so that the company's salary system becomes an important lever to realize the company's development strategy. The company's business strategy is different, so should the salary strategy, but the salary strategy implemented by some companies at present is largely decoupled from the company's business strategy. Instead of designing the salary system from the height of the company's overall strategy and human resources strategy, we take salary as the purpose and the fair and reasonable distribution of salary as the purpose, instead of paying attention to what kind of salary system will be beneficial to the realization of the company's strategy and human resources management.

2. The salary system is unscientific

Salary system is a system that companies classify all kinds of salaries according to the complexity, accuracy, responsibility, severity and working conditions of labor, and determine salary standards according to grades. Salary system is the fundamental law of enterprise salary and the foundation and basis of other components of salary system. The unscientific formulation of salary system is the root of other "diseases" of salary.

3. Wage is not "dynamic". The correlation between salary and performance is not strong.

Performance incentive is a salary management method with performance as the premise, assessment as the means, motivation as the guidance and employee progress and company development as the purpose under the premise of good basic guarantee. Performance pay is the best way to satisfy the individual's sense of pay equity. What kind of salary system and salary structure the company adopts is inevitably different. Only by establishing a reasonable salary structure according to its own characteristics can we give full play to the incentive role of salary. The goal of salary structure design is to make the amount of salary paid by employees directly proportional to their contributions. Through the performance appraisal of employees, the company provides quantitative assessment data for promotion or demotion between posts, so that employees can concentrate on hard work, improve their work performance, avoid the negative situation of doing well and doing badly, and thus better play the incentive role of salary. At the same time, we should link welfare with work performance. At present, the welfare policies of some companies are only related to working years or the number of workers, and have little to do with employee performance, so they lack motivation. On the premise of giving consideration to fairness, welfare benefits should be based on the contributions made by employees, and the grades should be widened as much as possible. Of course, while considering the above factors, the company's salary design must be combined with the company's own reality and cannot be copied at will. It is naive to simply say whether a salary plan is good or not, and whether it is suitable for the company is very important.

4. Not paying enough attention to other incentives besides money, ignoring the "spiritual value" in the salary system.

Generalized salary can be divided into two parts: internal salary and external salary. The former is the satisfaction people get from the work itself, and generally does not require enterprises to spend any economic resources. The latter is the substantial things such as wages, bonuses, allowances and benefits paid by enterprises to employees, which requires the company to pay a corresponding price in terms of economic resources. However, the operators of some companies understand salary as what we call "external salary" and ignore "internal salary". Operators still hold a conservative and short-sighted concept of employees' salary, thinking that as long as they pay the salary equivalent to the labor value, it is enough to attract and retain talents. Companies often don't respect employees' personality enough, and even don't notice the existence of "internal salary" at all, which leads to negative internal salary of employees, extremely low satisfaction of employees with enterprises and tense labor relations.

Generally speaking, salary plus bonus, or annual salary system, focuses on the current operating performance and belongs to short-term incentives, which have generally improved in recent years. However, if managers unilaterally pursue short-term interests, it may affect the long-term development of enterprises. The effectiveness of many decision-making behaviors often takes several years to show. If there is no corresponding long-term incentive, it may induce managers' short-term behavior and harm the fundamental interests of investors. However, many long-term incentive measures, such as stock options and managers' shareholding, are temporarily difficult to implement due to the lack of supporting policies, although many companies have requirements in this regard.

Second, the company's compensation management improvement methods and countermeasures

In order to change the current situation of the company's salary management, it is necessary to improve and redesign the current salary system, so that the company can establish a salary system with certain scientific basis, competitive externally and fair internally, and truly realize the incentive effect of salary.

1. Put salary management at a strategic height and attach importance to it.

The development of the company should have its own business strategy, and the salary strategy should be consistent with the company's development strategy. A good and instructive salary system should be suitable for the company's development strategy and support the realization of the enterprise strategy, because the salary system can effectively convey such information, what is the most important thing in the organization, and the more the salary system supports the key success factors of the company strategy, the more employees can understand and evaluate the company strategy. The degree of unity between salary system and strategy usually determines whether the strategy can be effectively implemented. The salary system consistent with organizational strategy will become the core competitiveness of the company and create a sustainable competitive advantage for the company, just like enterprise strategy, core technology and reorganization resources.

Salary strategy is an important part of enterprise strategy, and its fundamental point should be based on obtaining and maintaining the competitive advantage of the company. Strategic compensation management is a reward incentive mechanism based on the external changes of the company and its own situation. Incorporate into the company's overall strategy to reflect and cultivate long-term competitive advantages; It breaks through the traditional salary method and adopts flexible measures to make employees care about the future of the company like leaders; This can strengthen the communication between superiors and subordinates, stimulate the team spirit of employees, highlight the overall interests of the company and shape the corporate culture.

2. Pay attention to internal rewards.

Intrinsic reward is based on the task itself, such as competence, sense of accomplishment, sense of responsibility, attention, influence, personal growth and valuable contribution to work. In fact, for knowledge-based employees, internal compensation has a considerable relationship with employees' job satisfaction. Therefore, companies can implement internal rewards through work system, employee influence and human capital flow policy, so that employees can get the greatest satisfaction from the work itself.

3. Link income to skills.

Establish a personal skill evaluation system and determine employees' salaries according to their abilities. The salary standard is divided into different grades from the lowest skill to the highest skill. Skills-based systems can bring greater flexibility in changing jobs and introducing new technologies. When employees prove that they are competent for a higher level of work, the salary will naturally increase. In addition, the skill-based salary system has also changed the direction of management. After the implementation of the skill wage system, the focus of management is no longer to limit the task allocation to make it consistent with the post level. On the contrary, making full use of employees' existing skills will become a new focus. The biggest advantage of this evaluation system is that it can transmit information to make employees pay attention to their own development.

4. Enhance communication.

At present, many companies adopt the secret salary system, and the salary increase or bonus payment is not open, so it is difficult for employees to judge whether the salary and performance are related. People can't see the rewards of others, and they don't know their contribution tendency to the company. This will naturally weaken the incentive and satisfaction functions of the system, and a closed system will hurt people's sense of equality. On the other hand, equality is one of the important components to realize the satisfaction of the reward system and the incentive mechanism.

5. Let employees participate in the design and management of salary system.

The practice results of foreign companies in this respect show that it is often satisfactory and effective to let employees participate in the design and management of the salary system for a long time compared with the performance-based salary system without employees. Employees' more participation in the design and management of salary system will undoubtedly help to form a salary system that is more suitable for employees' needs and more in line with reality. In the process of participating in the system design, communicating the salary policy and purpose and promoting mutual trust between managers and employees can make the defective salary system more effective.

6. Introduce more flexible salary measurement methods.

(1) salary point system. Enterprises can determine the salary point of each employee according to the following factors: position, professional title, education or degree, working years, working years in specific jobs, outstanding contributions, responsibilities and intensity.

(2) Time system and piece system. These two measurement methods are quite effective for service units and subsidiaries of enterprises.

(3) Annual salary system. The annual salary system here is a salary calculation method based on working years, that is to say, the salary of employees will automatically increase with the increase of their service years in the enterprise or a certain position.

(4) Dividend system. It can be divided into two types: enterprise management or core management and all employees' dividend system. Although it is not a complete salary measurement method, it sometimes has unexpected effects for these people.

In a word, although the salary management reform of Chinese enterprises has made great progress and developed along the right track, it is still very important to strengthen its research and make it an enabling factor for enterprise development. This requires a group of professionals to do human resource management, take modern theories and methods as guidance, be brave in innovation and keep changing, and truly realize the sound and rapid development of companies and enterprises.

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