As an HR, how to understand the true meaning of salary design?

Salary design refers to formulating a reasonable salary policy and salary system for employees of an organization, so as to motivate employees' performance, improve employees' work enthusiasm and quality, and then promote the development and growth of the organization. HR understands that the real meaning of salary design should include the following aspects:

1. Salary design is an incentive mechanism: Salary design should be an effective incentive mechanism, which can stimulate the performance of employees and improve the performance of the organization, thus promoting the development and growth of the organization.

2. Salary design is a management tool: Salary design should be an effective management tool, which can help organizational managers to better manage employees and improve their work efficiency and quality.

3. Salary design is an employee welfare: Salary design should be an employee welfare, which can improve employee satisfaction and loyalty, thus promoting the stability of employees and organizations.

4. Salary design is an organizational strategy: Salary design should be an effective organizational strategy, which can help organizations achieve strategic goals and improve their competitiveness and market share.

5. Salary design is a kind of performance management: Salary design should be an effective performance management tool, which can help organizational managers to better evaluate employees' work performance, thus improving employees' work quality and organizational performance.