The Confusion of Traditional Compensation Theory

When we develop a compensation program, we first encounter a problem such as "the chicken or the egg first". When a compensation program developer designs a program, the first thing that comes up is the question, "What comes first, the program, or the company?" In layman's terms, the general company can be roughly divided into two categories, one is the first patchwork of a few people, regardless of the reorganization into a company, and then the east and west, no rules and regulations of business, during which may slowly become the scale and expansion, and finally to the "integration" period, the need for management of the rules and regulations, will think of the development of compensation programs; the other type is The other type is that the enterprise is already a mature enterprise and has a complete set of programs, only to make some regional amendments according to the specific situation. For these two different types of companies, the utility of the pay program is completely different, the developer must be flexible, otherwise, the pay program is likely to fail.

The possibility that traditional compensation theory "hits the wall" is as follows:

First, the incorrect factor of salary survey. Generally speaking, the development of enterprise remuneration program must not be roughly observed in the market overall market, but must be based on the nature of the enterprise industry, products, size, staff structure, ability to pay, the balance of the level of geographic location and other factors to consider the market survey. Sample data collected to be as true and reliable as possible, otherwise, only "blackmail".

Secondly, there are many factors that lead to huge deviations in the setting of grade levels. For example, the influence of "the will of the chief", some positions, managers think it is very important, the grade is set very high, but the fact is not so; there are positions set at a lower level, but with the salary of the grade in the market can not be hired to the right talent. This kind of unscientific sorting, will inevitably lead to the failure of the remuneration program.

Third, it is difficult to integrate the existing salary structure of the enterprise. Some of the old enterprises have long been "a carrot, each own a book", suddenly to "scientific management", the people will be difficult to accept. Of course, if the pay scale is upward, certainly no problem; if it is downward adjustment, it will certainly incur the opposition of everyone, the new program is very likely to end.

In view of the above, Beijing and Shanghai, some payroll experts for more than ten domestic Chinese and foreign joint ventures, "symptoms", research and summarize a set of effective programs and has achieved large-scale success. Its main content is "to point to lead the surface, distribution and implementation, compromise counting, payroll squeeze", so as to complete the transformation of the entire program.

The remuneration program is related to the "people's livelihood" of the major events, known as the basis of governance. It's hard to do this by just copying the so-called classic approach.