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Salary structure strategy



meaning

salary structure refers to an arrangement in the form of different positions within the same organization or different skill levels of staff salaries, emphasizing how much the size difference between the different levels of pay levels and pay levels criteria for determining salary differential, which reflects the views of business importance and value of different functions and capabilities.

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Salary structure strategy

salary structure should focus on two points, one of its process to develop a scientific and rational, the second is the difference between the pay is reasonable. Their design ideas in general, there are two, one is tends to equal salary structure, one is tends to be hierarchical salary structure.

Mode

high elastic Compensation Mode:

This is a strong incentive compensation model, performance pay compensation is the main component of the structure, in a very basic remuneration secondary position, the proportion is very low (even zero). I.e. the fixed portion of the compensation ratio is relatively low, a relatively high proportion of the floating portion. This compensation model, the number of employees salary depends entirely on the quality of work performance can be obtained. When employee performance is very good, the pay is very high, and when the performance is very poor, pay is very low or even zero. This model is applicable to the remuneration and performance of the company staff effort associated with larger enterprises.

high stability Compensation Mode:

This is a highly stable compensation model, basic salary is the main part of the compensation structure, pay for performance and so in a very secondary position, the proportion of very low (or even zero). I.e. the fixed portion of the compensation ratio is relatively high, and the floating portion is relatively small. This compensation model, the income of employees is very stable, suitable for high-quality staff, relatively stable business performance, or performance of the company and staff effort associated with small businesses.

In practical applications, usually pay for performance and basic pay half and a certain proportion. When both harmonic ratio continuously changes, this model can be evolved with pay incentive-based model, the model can be evolved to stabilize compensation based.

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