1000 Business Lessons Every Businessman Must Know

Chapter 49 Salary Design and Incentives: Improving Employee Motivation (2)
Second, the environment of enterprises is constantly changing, including government regulations, economy, society, trade unions, labor market, living standards, etc.For example, rising social prices, higher wages of competitors, higher wages of the entire industry or the whole society, these factors will force companies to adjust wages in a timely manner to avoid the loss of talents and skilled workers.Of course, salary adjustments are not necessarily general adjustments. For some, the salary increases for technical personnel, for some management personnel, and for ordinary employees. This depends on the specific circumstances.

Third, the business strategy of the enterprise will also be adjusted with the development of the enterprise and changes in the market environment.This requires different incentive measures for various types of employees within the enterprise - adjusting the salary levels of different employees.For example, if an enterprise wants to expand the market, it must increase the incentives for sales staff; if an enterprise wants to improve product quality, it should increase the degree of rewards for technical personnel and production personnel for performance related to product quality.

402. Salary Management Using Sorting Method
The sorting method is the simplest of the four methods of salary management technology, which is to sort the relative value of each post according to the overall index of the post.The ranking method generally does not evaluate the job factors (such as skills, responsibilities, qualifications, etc.) of the job item by item, but considers its relative value as a whole.For example, the buyer is larger than the receptionist, the driver is larger than the receptionist and smaller than the accountant, and the accountant is smaller than the buyer.In this way, the order of the relative value of the positions from large to small can be obtained: buyer, accountant, driver, receptionist.

The advantage of the sorting method lies in its ease of operation, but there are often some subjective judgment problems in its application process, and the size of the level difference cannot be displayed.

403. Compensation Management Using Classification
The classification method is to classify and grade various positions in advance, and determine the grading standard, and then classify and classify various positions in the enterprise according to this standard.The classification method is to first classify similar positions into job groups, such as administration, marketing, production, etc.; at the same time, classify these job categories according to their work requirements, complexity, and difficulty, and stipulate the classification standards; Each specific work is compared with the level standard and positioned at the appropriate level.For example, production workers can be divided into 5 grades, and the grade standards of these 5 grades are shown in the table below.

level
Classification standard
first-class worker
Simple operation, requires guidance, no responsibility to supervise others, no communication required

Secondary worker

Simple operation, no guidance required, no responsibility to supervise others, no communication required

Third grade worker

Moderately difficult operation, there is a responsibility to guide others, but no responsibility to supervise others, and communication is required

Fourth grade worker

Moderately difficult operation, has the responsibility to guide others, has the responsibility to supervise others, needs to communicate

Fifth grade worker

Difficult to operate, have the responsibility to guide others, have the responsibility to supervise others, need to communicate

The advantages of the classification method are the same as the sorting method, and the operation is simple, but it is easier to be accepted by employees than the sorting method.Because it has a relatively reasonable level evaluation standard, it appears to be relatively fair, and the subjectivity will not be too strong.The disadvantage is that the grading method is still too simple, the accuracy is poor, and it is not easy to write a standard work class (grade) manual.Also, their values ​​are not comparable between levels of different job categories.

The classification method is widely used in small and medium-sized enterprises because of its simplicity.

404. Salary Management Using Factor Comparison Method
The "factor" in the factor comparison method refers to the remuneration factor, which reflects the reasons for the differences in wages and remuneration of different positions, and together they constitute the index system of job evaluation.The determination of remuneration factors is a key part of job evaluation, which often varies with the actual situation of the enterprise, but in the same enterprise, all positions must be evaluated with the same remuneration factors.The factor comparison method is a job evaluation method that quantifies the remuneration factors of key positions, establishes the remuneration level of key positions, and then compares other positions with it to determine the remuneration level.

The method of factor comparison is generally divided into three steps. First, select several key positions and their reward factors, and quantify these reward factors; then, establish a "job reward factor grade scale" according to the reward factors of each position; finally Compare the remuneration factors of each position in the enterprise with the scale, and finally determine the remuneration level of the position.

The factor comparison method is a quantitative job evaluation method, which can be said to be the quantification of the ranking method.In the sorting method, the job factors of the post are not separated, and are only judged as a whole; in the factor comparison method, the job factors of the job are subdivided, and typical job factors are selected as remuneration factors for quantification.The factor comparison method is widely used in western enterprises; while some enterprises in our country are beginning to learn this quantitative job evaluation method.

405. Salary Management Using Factor Counting Method
The factor counting method, also referred to as the point counting method for short, is a job evaluation method that determines the job level and salary level through the point value evaluation of the reward factors of the post, that is, it is based on the evaluation of the reward factors.Its operation method has many similarities with the factor comparison method. The difference is that the factor comparison method is relative to the standard position, while the factor point method is the absolute score against the standard.

The factor counting method first classifies each post, and the posts with similar work nature are classified into job groups; select typical remuneration factors in each job group, and classify each remuneration factor to determine the point value; finally, the post’s The point value of the post is obtained by summing the point values ​​corresponding to the compensation factors.According to the point value of the position, the ranking of the position and the determination of the remuneration level can be carried out.

The advantage of the factor counting method is that it can accurately quantify the remuneration factors of the post, so that the post can be evaluated more accurately. However, it is quite difficult for the enterprise to establish a reasonable point value evaluation plan.In the United States, the National Trade Association has a set of standard point value schemes that most companies refer to and adopt.In a survey, 90% of the enterprises surveyed adopted this ready-made point value evaluation scheme.In our country, there is no standard point value evaluation scheme, and some enterprises are trying this quantitative work evaluation method.

[-]. Salary incentives

406. Most people work for their wages
There was an old man who liked to be quiet.He went out of the house and said to the children who kept making noises: "If you come here to play every day, I will give each of you 1 yuan." That day, every child really got 1 yuan.After that, more and more children gathered around the old man's house to play.But one day the old man did not come out, and naturally all the children did not get the money.The old man still didn't come out the next day. The anxious children finally knocked on the door of the old man's house and said to the old man: "Since you don't give us any money, we will never come to your place to play again, and tell our friends all I won’t be here to play with you.” The old man and the children all smiled triumphantly.

What does this story tell us?Why does only 1 yuan play such a big role?This story tells us that money has a potential power to influence people's behavior.

Similarly, compensation is extremely important to employees, it is not only a means of earning a living for employees, but it can also satisfy employees' sense of value.Salary is the basis for society to measure a person's value. Therefore, it affects a person's mood, enthusiasm and ability to a large extent.

In today's society, it is not disgraceful for business leaders to use material to motivate employees, but it has excellent results.Money plays an important role in circulation in society, and usually the application of money is an important part of a person's success.Smart managers know how to use visible and earned money to motivate employees to work.

407. "Salary" and "mood" are closely related

"Salary" and "mood" are closely related. If "salary" is not good, how can "mood" be good?

Salary is the basic driving force for enterprises to stimulate the potential of employees, and it is a barometer for enterprises to employ, retain and motivate employees.

The phrase "getting depends on giving" was once popular, but now more companies are believing that "giving depends on getting"
", compensation is no longer seen as an unavoidable cost, but as a powerful tool to accomplish organizational goals

With.

If a company can formulate a more reasonable policy on salary, it can take the initiative in employing people; while a company with a rigid salary policy and egalitarianism can only act as a training school, and no one will be hired when the company is in urgent need of employment. available.

So, how should the enterprise make employees get the greatest satisfaction in terms of salary?The following aspects can be referred to:
(1) Provide employees with competitive salaries.

(2) Pay attention to intrinsic rewards.Intrinsic rewards are the opposite of extrinsic rewards.It is compensation based on the job task itself, such as a sense of competence, accomplishment, responsibility, attention, influence, personal growth, and valuable contribution to the job.

(3) Link employee income to skills.Skills-based systems allow for greater flexibility in switching jobs and introducing new technologies, and when employees prove they are competent for higher-level jobs, their compensation will also increase logically.

(4) Allow employees to participate in the design and management of the compensation system.In the process of participating in the system design, communicating the compensation policy and purpose, promoting mutual trust between managers and employees, can make the existing salary system more effective.

408. Appropriately determine the proportion of fixed remuneration and variable remuneration
For employees' remuneration, the ratio of fixed salary to floating salary has always been very important.From the experience of American companies, floating salary generally accounts for more than 50%, and for some senior managers who hold a large number of company stock options, this proportion can reach 80% or even higher.This is just a general ratio, and the specific figures should be analyzed in light of the specific circumstances of the enterprise and employees:
From the perspective of the types of employees, for technical and sales employees with obvious benefits and high work creativity requirements, the proportion of floating salary should be higher, which is conducive to improving their enthusiasm and turning pressure into motivation.Many companies have canceled the basic salary of technical personnel, and it is common for salespeople to have no basic salary.Management employees should appropriately increase the proportion of fixed salary, after all, their work performance is more difficult to measure, and their contribution is more sustainable.

From the perspective of the development stage of the enterprise, when the enterprise is in the early stage of development, the fixed salary of employees should be higher.This is because, at this time, the employee's work is more saving.From the establishment and improvement of the organizational structure and system of the entire enterprise to the development and development of an unprecedented new product and new technology, from the establishment of sales outlets to the gradual expansion of the sales network, the efforts of the early employees are the long-term sustainability of the enterprise. An important factor that is indispensable for development and future high profits.And these efforts are difficult to reflect on the enterprise's income statement at the beginning.After the enterprise is in a mature stage, the development of business and the development of the enterprise require employees to do more creative work, rather than sit back and enjoy the benefits. Appropriately increasing the proportion of floating salary can guide employees to work hard in this direction.

From the perspective of the nature of the enterprise, the salary of employees in high-tech enterprises should be more floating, while the salaries of employees in mature industries or sunset industries should be mainly fixed salaries.

409. Internally Fair and Externally Competitive

Internal fairness and reasonableness is the theme of the salary system, which solves the problem of internal consistency.Only by treating every employee fairly can a positive atmosphere within the organization be maintained.

High salaries do not necessarily keep people, and it is not uncommon for the highest paid people in companies to leave, in large part because companies do not pay enough differentially for different performances to make them feel that they are comparable to others. Competitiveness refers to the comparison between the salary level of the company itself and the salary level of market competitors.

Judging from the current talent market situation, the company's salary level is still one of the most important factors that determine whether a company can attract and retain employees.As a scarce resource, employees must pay a higher price to obtain it, which is more competitive than the market average in determining the salary level.

410. Try to send out red envelopes as little as possible
The method of payment of remuneration should be open and transparent, and the method of giving out red envelopes in private should be minimized or not used.The public salary payment method can produce a good demonstration effect, "Look, you can get so much money for achieving this kind of performance," thus guiding employees to work towards the goals set by the company.However, the bosses of many companies are accustomed to giving out red envelopes to employees in private to reward their outstanding contributions to the company.

Giving out red envelopes in private is likely to cause mutual suspicion among employees and destroy the harmonious atmosphere within the company. Moreover, the amount of red envelopes is decided by the boss alone, which itself deviates from the scientific and open performance evaluation system advocated by the modern enterprise system.In particular, many employees themselves belong to the senior leaders of the company, and giving them red envelopes is more likely to cause adverse effects within the company.

However, the public payment of remuneration should be based on a scientific and complete performance evaluation system.Otherwise, full disclosure may cause employees to scramble to exploit loopholes in the system.In practice, very few SMEs can be fully released publicly.Therefore, from a short-term perspective, this method has its rationality; but from the perspective of long-term improvement of the enterprise system, it should be gradually abolished.

411. Appropriately lower expectations

How can we control the increase in labor costs without reducing the incentives for employees when adjusting their salaries?An effective method is to first reduce employees' expectations of their salary targets, such as low-key handling of employees' expected salary adjustment range and salary adjustment range.

In this way, when employees find that their actual salary increase is larger than their expectations, there will be a sense of satisfaction.Even if there is no sense of satisfaction, his dissatisfaction with the company will be greatly reduced compared with before the implementation of this method.

412. Appropriately shorten the reward interval and maintain the timeliness of incentives

According to relevant research by psychologists, frequent small-scale rewards are more effective than large-scale rewards.Therefore, enterprise managers can divide the salary that should have been paid at one time into several times, thereby reducing the time interval of salary payment and maintaining the timeliness of employee incentives.

In addition, part of the salary can also be changed to irregular payment, so that employees can have more surprises and increase the role of incentives.

413. Implementation skills of welfare plan

Xie Beier, president of Shanghai Bell Co., Ltd., once said: "Wonderful benefits can motivate employees more effectively than high salaries."

When investigating the employment intentions of some college graduates, many students are willing to go to some European and American companies or large state-owned enterprises. In addition to the relatively standardized management system of large companies, good benefits are what they value.

不妨看看以下两组数字。数据一：跨国大公司在过去的50年里，平均工资增长了40倍，而福利增长了500倍；数据二：在世界500强企业中，员工的工资与福利已几近达到1：1的比例。而这些福利大多投在住房福利、养老保险、医疗寿险等长期项目的福利中。

It can be seen that the welfare plan has become an important factor in attracting talents.After employees have met their basic needs, their welfare requirements are naturally very different from those of ordinary employees.Then, in the design and implementation of welfare plans, how to maximize the role of benefits and meet the special requirements of employees?You may wish to refer to the following tips.

414. Buffet-style benefit plans

In order to thank the employees for their hard work in the past year, the senior leaders of a certain company specially prepared a benefit: a briefcase for each employee.The company's top management thought that the majority of employees would like this gift, but unexpectedly received a lot of complaints. Some senior managers said: "I usually don't need a briefcase at work, so I have to keep it at home." Objected to using the same briefcase, "That's too impersonal", and some people even said, "It would be great if you could give me a water heater, which is exactly what I need."

The original intention of the company to issue benefits is to better improve employee morale and motivate employees to work harder.However, the improper distribution of benefits has the opposite effect and hurts the feelings of employees.Benefits can only motivate employees if they are tailored to their needs.Therefore, if the company can allow employees to freely choose the items they need, the effect will be significant.

A buffet-style benefits plan for employees should not compromise the benefits of the average employee.Note that based on the company's affordability, try to control the diversity of employees, and it is not practical to use all buffet style.Therefore, every employee should enjoy the "big-sized" benefits that are related to the safety and security of the majority of employees, such as housing allowances, pensions, medical care, etc. To do a good job in employee feedback work, try to combine old, middle-aged and young people, ordinary employees and employees, and make plans as colorful as possible.

415. Let employees know what benefits are all about
(End of this chapter)